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?
- Tracing of purchases recorded in the purchase book to purchase invoices
- Comparing aggregate wages paid to number of employees
- Comparing the actual costs with standard costs
- All of them are analytical procedures
Q:2 Analytical procedures compare one result to another. These comparisons may be with all the following except:
- Similar information about top-performing subsidiaries
- Anticipated results (such as budgets and forecasts, or auditor expectations)
- Comparable information for prior periods
- Non-financial information
Q:3 Performing analytical procedures may be thought of as a four-phase process. The first phase is:
- compare the expected value to the recorded amount
- formulate expectations
- evaluate the impact of the differences between expectation and recorded amounts on the audit and the financial statements
- investigate possible explanations for a difference between expected and recorded value
Q:4 A basic premise of using analytical procedures is that:
- there exist plausible relationships among data that is highly accurate
- there exist plausible relationships among data that can reasonably be expected to continue
- they are a good indicator of fraud and error
- they are essential in the planning process
Q:5 Of the following types of analytical procedure, which one uses the most variables?
- Reasonableness test
- Trend analysis
- Ratio analysis
- Data mining
Q:6 Which of the following procedures do general analytical procedures not include?
- Sequence tests
- Trend analysis
- Statistical analysis
- Reasonableness tests
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