Tiêu đề AAE - Earth.pdf ✅

AAE - Earth www.4dtrainingacademy.com All tasks are compulsory. Task 1 (30 marks) Part (i) ZETA Private Limited is a recently established start-up formed with objective for promoting use of polyhouses and offering farmers necessary know-how for setting up such structures. Polyhouses enable farmers to grow good quality crops like vegetables throughout the year. At a meeting, directors discuss about pros and cons of independent audit of financial statements in a start-up like theirs. Which of following statements is false in this regard? (a) It is mandatory requirement for their start-up. There are no choices. (b) Audited financial statements may be used by start-up for obtaining funds from prospective investors. (c) Such an audit can point out deficiencies in internal control system of start- up’s business. (d) Such an audit would necessarily result in reflection of higher profits leading to higher income tax liabilities for start-up. Part (ii) Once the overall audit strategy has been established, _______ can be developed to address the various matters identified in the overall audit strategy, taking into account the need to achieve the audit objectives through the efficient use of the auditor’s resources. (a) audit strategy (b) audit strategy (c) audit plan and audit strategy (d) audit note book Part (iii) Which of the following is a General IT control? (a) IT Environment (b) IT Environment (c) Access Security (d) IT Dependent Control Part (iv) CA P has completed audit of a company and final audit file has been assembled. After about two years, in connection with some regulatory proceedings, he is asked to produce copy of audit file. He again takes a fresh look at audit
Think CA Think 4D Page 2 www.4dtrainingacademy.com documentation and discards some papers. Which of following statements is correct in this regard? (a) He can discard papers before end of retention period of file. (b) He can discard papers before sharing copy with regulator. (c) He can’t discard papers before end of retention period of file. (d) He can discard papers in certain circumstances according to his judgment. Part (v) As per SA-200 “Overall Objectives of the Independent Auditor”, in conducting an audit of financial statements, the overall objectives of the auditor are: (a) To obtain reasonable assurance (b) To report on the financial statements (c) Both (a)and (b) above (d) to obtain absolute assurance. Part (vi) Audit risk is a function of the risks of material misstatement and __________ (a) detection risk. (b) inherent risk (c) control risk (d) business risk Part (vii) Mrs. Reema has availed a Personal Loan for her Boutique of INR 5 lakhs and a Vehicle Loan to purchase an Activa Scooter for INR 60,000. She is regular in depositing EMI of the Activa Loan but has not made any payments towards the Personal Loan due to low business during the year. In this case, which of the following facilities should be categorized as NPA ? (a) Activa Loan (b) Personal Loan (c) Higher of the two (d) Both the Activa Loan & the Personal Loan Part (viii)