Title AUDIT QP R SOLUTION (1).pdf ✅

CA INTER – AUDITING BRIDGE TEST-2 SUGGESTED ANSWERS [1] CASE SCENERIO 1: 1. Correct Answer: B Explanation: The limitation is material but not pervasive, so a qualified opinion is appropriate under SA 501 and SA 705. 2. Correct Answer: C Explanation: Since the matter involved significant auditor attention, it qualifies as a Key Audit Matter under SA 701, not an EOM. 3. Correct Answer: B Explanation: This is a non-adjusting subsequent event (as per SA 560) but requires disclosure due to its materiality 4. Correct Answer: A Explanation: Proper disclosure of a non-adjusting but material event like customer bankruptcy warrants an EOM paragraph under SA 706. 5. Correct Answer: A Explanation: Final report will include: • Basis for Qualified Opinion (for inventory – SA 501), • Key Audit Matter (for going concern – SA 701), • EOM Paragraph (for subsequent event disclosure – SA 560 & 706). INDIVIDUAL MCQ’S: 6. Correct Answer: C Explanation: • Under SA 580, the refusal to provide written representation is a scope limitation. • As per SA 705, when the auditor cannot obtain sufficient appropriate evidence and the matter is material but not pervasive, a qualified opinion must be issued.