MCQ for CA Intermediate Audit - Chapter 8 - Analytical Procedures

Sample Multiple Choice Questions (MCQ's) for CA Intermediate - Paper 6 - Auditing and Assurance - Chapter 8: Analytical Procedures - For Practice relevant for May/November 23 Examinations

Q:1 Which of the following is not an analytical procedure?

  1. Tracing of purchases recorded in the purchase book to purchase invoices
  2. Comparing aggregate wages paid to number of employees
  3. Comparing the actual costs with standard costs
  4. All of them are analytical procedures

Answer: 1

Q:2 Analytical procedures compare one result to another. These comparisons may be with all the following except:

  1. Similar information about top-performing subsidiaries
  2. Anticipated results (such as budgets and forecasts, or auditor expectations)
  3. Comparable information for prior periods
  4. Non-financial information

Answer: 1

Q:3 Performing analytical procedures may be thought of as a four-phase process. The first phase is:

  1. compare the expected value to the recorded amount
  2. formulate expectations
  3. evaluate the impact of the differences between expectation and recorded amounts on the audit and the financial statements
  4. investigate possible explanations for a difference between expected and recorded value

Answer: 2

Q:4 A basic premise of using analytical procedures is that:

  1. there exist plausible relationships among data that is highly accurate
  2. there exist plausible relationships among data that can reasonably be expected to continue
  3. they are a good indicator of fraud and error
  4. they are essential in the planning process

Answer: 2

Q:5 Of the following types of analytical procedure, which one uses the most variables?

  1. Reasonableness test
  2. Trend analysis
  3. Ratio analysis
  4. Data mining

Answer: 4

Q:6 Which of the following procedures do general analytical procedures not include?

  1. Sequence tests
  2. Trend analysis
  3. Statistical analysis
  4. Reasonableness tests

Answer: 1

CA Intermediate AUDIT - MCQ for Chapter 9 -   

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