MCQ for CA Intermediate Audit - Chapter 5 - Fraud and Responsibilities of the Auditor in this Regard

Sample Multiple Choice Questions (MCQ's) for CA Intermediate - Paper 6 - Auditing and Assurance - Chapter 5: Fraud and Responsibilities of the Auditor in this Regard - For Practice relevant for May/November 23 Examinations

Q:1 When credit purchases of ₹ 5100 is recorded on credit side and credit sales of ₹ 5100 is recorded on debit side, this kind of error is called __________

  1. Error of omission
  2. Compensating error
  3. Error of principle
  4. Error of commission

Answer: 2

Q:2 A situation where someone believes they have a favourable or promising combination of circumstances to commit an undetectable fraud is the description of:

  1. perceived pressure
  2. rationalisation
  3. management fraud
  4. perceived opportunity

Answer: 4

Q:3 Fraudulent financial reporting involves _______________

  1. Management override of controls that otherwise may appear to be operating effectively
  2. Causing an entity to pay for goods and services not received
  3. Stealing physical assets or intellectual property
  4. Using an entity's assets for personal use

Answer: 1

Q:4 As per Sec. 143(15) of Companies Act, 2013, if any auditor, cost accountant or company secretary in practice do not comply with the provisions of Sec. 143(12), he shall be punishable with fine which shall not be less than ___________ but which may extend to __________ .

  1. ₹ 1 lac; ₹ 25 Lacs
  2. ₹ 5 lacs; ₹ 25 Lacs
  3. ₹ 1 lac;₹ 5 Lacs           
  4. ₹ 1 lac; ₹ 10 Lacs

Answer: 1

Q:5 Events or conditions that indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud are called as:

  1. Fraud risk factors
  2. misappropriation of assets
  3. Fraud opportunities
  4. eventual frauds

Answer: 1

Q:6 The standard that requires auditors to analyse journal entries in an audit is ?

  1. SA 260
  2. SA 230
  3. SA 315
  4. SA 240

Answer: 4

CA Intermediate AUDIT - MCQ for Chapter 6 -   

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