Tiêu đề AUDIT QP O SOLUTION (1).pdf ✅

CA INTER - AUDITING BRIDGE TEST – 3 SUGGESTED ANSWERS [1] PART-A 1. Correct Answer: C → To conduct the audit in an effective and efficient manner Explanation: • SA 300 states that the purpose of planning is to: • Ensure that the audit is performed in a timely, efficient, and effective manner. • Help identify and address risks of material misstatement. • Assist in the allocation of responsibilities among the team and guide supervision. 2. Correct Answer: B → Audit strategy sets direction; audit plan translates it into detailed procedures Explanation: • As per SA 300: o The audit strategy sets the scope, timing, and direction of the audit. o The audit plan contains the detailed nature, timing, and extent of audit procedures based on the strategy. • The audit plan is developed based on the audit strategy. 3. Correct Answer: B → Preliminary engagement activities Explanation: As per SA 300, Preliminary Engagement Activities include: • Performing procedures to comply with ethical requirements, especially independence. • Evaluating compliance with terms of engagement. • Establishing an understanding with the client. 4. Correct Answer: B → Classify as NPA even if interest is serviced Explanation: • Per RBI guidelines on advances, if a regular review or renewal is not done within 180 days, the account should be classified as NPA, even if interest is being serviced.

DHEERA TEST SERIES [3] PART-B Answer No 1: Use of Digital Technology in the conduct of an audit: Entities are embracing digitization as part of their operations to keep pace with changing times. New technologies are helping companies revamp their operations and rethink the way business is conducted. Companies are restructuring their business models driven by technology. Automation is key to digitization. In such a business environment, use of digital technology is being made by auditors right from planning to expression of final opinion. • Auditors are making use of artificial intelligence, data analytics and other latest technologies to help understand business processes in a better way. • By using such tools, auditors can conduct audits in a better way and devote more attention to areas requiring greater focus. • Digital audit is helping auditors to better identify risks making use of technology. COMMON PITFALLS: Students may write only 2 or 3 points, or repeat the same idea using different words. Students Missing terms like: Artificial intelligence, Data analytics, Risk identification These are must-include terms. Their absence leads to loss of marks even if the point is generally correct. Answer No 2: The auditor’s determination of materiality is a matter of professional judgment and is affected by the auditor’s perception of the financial information needs of users of the FS. In this context, it is reasonable for CA Y, the auditor, to assume that users: a) Have a reasonable knowledge of business and economic activities and accounting and a willingness to study the information in the FS with reasonable diligence Award marks only if all 4 points Including the highlighted technical points are written correctly for each question. No marks for generic or Vague content. ——>1M ——>1M ——>1M ——>1M ——>1M ——>1M ——>1M