Tiêu đề 100_ MOCK ANS KEY (with watermark).pdf ✅

CA INTER – AUDITING MOCK TEST PAPER – 1 SUGGESTED ANSWERS [1] MCQ SOLUTION: 1. Correct Answer: (b) (ii), (iv), and (iii) Explanation of assertions: • Occurrence: Transactions recorded actually occurred. • Completeness: No expenses have been omitted. • Cut-off: Expenses recorded in the correct period. 2. Correct Answer: (c) Explanation: As the dividend was declared after year-end, it must not be recorded as liability in FY 2022–23 but only disclosed in notes. 3. Correct Answer: (a) Valuation Explanation of assertion: Valuation: Ensures assets and liabilities are recorded at appropriate amounts. 4. Correct Answer: (b) Rights and obligation Explanation of assertion: Rights and obligation: The entity must have rights to assets and obligations to liabilities. Since invoices are in the director’s name, the ownership right by the company is not clear. 5. Correct Answer: (d) Explanation: • The company is responsible for restating. • This checks whether the valuation of foreign currency balance is accurate. 6. Correct Answer: (d) Explanation: As per SA 705 (Revised) – Modifications to the Opinion in the Independent Auditor’s