MCQ for CA Intermediate Audit - Chapter 9 - Audit of Items of Financial Statements

Sample Multiple Choice Questions (MCQ's) for CA Intermediate - Paper 6 - Auditing and Assurance - Chapter 9: Audit of Items of Financial Statements - For Practice relevant for May/November 23 Examinations

Q:1 Direct confirmation procedures are performed during audit of trade receivable balances to address the following balance sheet assertion:

  1. Measurement
  2. Existence
  3. Rights and Obligations
  4. Completeness

Answer: 2

Q:2 During the course of audit of intangible assets, expenditure incurred during which of the following phase is generally not capitalised:

  1. Research phase
  2. Development phase
  3. Both (a) and (b)
  4. None of the above

Answer: 1

Q:3 Cut-off testing is performed during audit of sales to address which of the following assertion:

  1. Occurrence
  2. Measurement
  3. Completeness
  4. Existence

Answer: 3

Q:4 Sec. 52 of the Companies Act, 2013 states that Security Premium Account can be applied by the Company for one of the purposes mentioned below. Which of the following is a CORRECT option?

  1. To adjust loss on revaluation of Assets
  2. To pay dividend to equity shareholders
  3. Providing for the premium payable on redemption of Preference shares
  4. To use it as working capital for its business.

Answer: 3

Q:5 When examining the debtors of the client, the Auditor should make comparison of ___________.

  1. Closing balance of debtor with corresponding figure of last year
  2. Closing balance of debtor with budgeted figure
  3. Current year aging schedule with that of last year
  4. All of these

Answer: 4

Q:6 During the course of audit of intangible assets, expenditure incurred during which of the following phase is generally not capitalised:

  1. Research phase
  2. Development phase
  3. Both (a) and (b)
  4. None of the above

Answer: 1

CA Intermediate AUDIT - MCQ for Chapter 10 -   

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