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CA Final Auditor Independence — practice questions — page 2

Explore 73 free Auditor Independence questions in CA Final Auditing. Open each question or exercise to read its content, reference answers and available explanation.

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Auditor Independence questions and exercises with answers

Showing questions 31–60 of 73.

An AICPA covered member includes a partner giving how many hours of non-attest services?Read the answer and worked solution →Which proposal in the EC's Eighth Directive aimed to remove conflicts of interest for auditors?Read the answer and worked solution →Which service does Section 144 bar a company's statutory auditor from rendering?Read the answer and worked solution →Under Section 144, who approves the other services an auditor may provide?Read the answer and worked solution →Section 144 bars the auditor from which kind of finance-related service?Read the answer and worked solution →Section 144 prohibited services also cover services given to which related entity?Read the answer and worked solution →For an audit firm, Section 144 counts services given indirectly through whom?Read the answer and worked solution →Under Section 132(1), who constitutes the National Financial Reporting Authority?Read the answer and worked solution →Under Section 132(2)(a), NFRA recommends accounting and auditing standards to whom?Read the answer and worked solution →Which function does Section 132(2)(b) give the NFRA?Read the answer and worked solution →Section 132(2)(c) asks the NFRA to oversee what?Read the answer and worked solution →Under Section 132(3), the NFRA has a chairperson and members not exceeding how many?Read the answer and worked solution →Full-time NFRA members cannot join any audit firm for how long after leaving, under Section 132(3)?Read the answer and worked solution →Once NFRA starts a Section 132(4) investigation into a CA's misconduct, other bodies must do what?Read the answer and worked solution →Under Section 132(4), NFRA may debar a member or firm for at most how long?Read the answer and worked solution →Under Section 132(4)(c), an individual's penalty may extend to how many times the fees received?Read the answer and worked solution →Section 132(4) takes the meaning of professional misconduct from which CA Act section?Read the answer and worked solution →A person aggrieved by an NFRA penalty order under Section 132(5) may appeal where?Read the answer and worked solution →Under Section 132(12), where is the NFRA's head office?Read the answer and worked solution →Under Section 132(15), the NFRA annual report is laid before whom?Read the answer and worked solution →Under Rule 3 of the NFRA 2018 appointment rules, how many full-time members are there?Read the answer and worked solution →The NFRA chairperson needs experience of at least how many years under Rule 3(2)?Read the answer and worked solution →The NFRA search-cum-selection committee under Rule 4 is headed by whom?Read the answer and worked solution →To whom does an auditor report a large fraud under Section 143(12)?Read the answer and worked solution →Rule 13 requires reporting fraud to the Central Government at what individual amount?Read the answer and worked solution →A smaller fraud under Rule 13(3) is reported to whom?Read the answer and worked solution →Under Rule 13(2)(a), the auditor tells the Board of a fraud within how many days?Read the answer and worked solution →After the Board's reply, the auditor forwards the report to the Central Government within how many days?Read the answer and worked solution →Which form carries an auditor's fraud report to the Central Government under Rule 13?Read the answer and worked solution →Under Section 143(13), reporting fraud under sub-section (12) in good faith has what effect?Read the answer and worked solution →

Worked practice questions

An AICPA covered member includes a partner giving how many hours of non-attest services?

  1. Ten or more
  2. Two or more
  3. Five or more
  4. Forty or more
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Correct answer: A. Ten or more

A partner or manager who provides 10 or more hours of non-attest services in a year becomes a covered member.

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Which proposal in the EC's Eighth Directive aimed to remove conflicts of interest for auditors?

  1. Barring advisory work
  2. Doubling audit fees
  3. Banning all audits
  4. Ending audit committees
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Correct answer: A. Barring advisory work

Barring advisory work for audit clients was proposed to remove conflicts, though it was never made a requirement.

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Which service does Section 144 bar a company's statutory auditor from rendering?

  1. Actuarial services
  2. Reporting on accounts
  3. Attending the AGM
  4. Signing the audit report
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Correct answer: A. Actuarial services

Actuarial services are one of the listed non-audit services an auditor may not provide to the company.

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More Auditing topics

Auditor's ReportOverview of Audit of Public Sector UndertakingsInternal AuditStandards on Auditing and Professional EthicsInternational Ethics Standards Board for AccountantsRisk Assessment and Internal ControlSpecial Features of Audit of Banks and Non-Banking Financial CompaniesAuditor's Report on Financial Statements