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CA Final Powers and Duties of Auditors and Auditing Standards — practice questions — page 2

Explore 60 free Powers and Duties of Auditors and Auditing Standards questions in CA Final Auditing. Open each question or exercise to read its content, reference answers and available explanation.

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Powers and Duties of Auditors and Auditing Standards questions and exercises with answers

Showing questions 31–60 of 60.

Auditor suspects fraud by officers. Under s.143(12), what must he do?Read the answer and worked solution →Section 143(12) applies to fraud committed against the company by whom?Read the answer and worked solution →The s.143(12) duty arises when the auditor has what in the course of his duties?Read the answer and worked solution →Under the s.143(12) proviso, a fraud below the specified amount goes where?Read the answer and worked solution →A company's auditor reported a fraud only to its audit committee. What must the company then disclose?Read the answer and worked solution →An auditor reports fraud in good faith and is accused of breaching confidence. What does s.143(13) say?Read the answer and worked solution →Section 143(14) applies mutatis mutandis to a company secretary in practice conducting which audit?Read the answer and worked solution →What is the minimum imprisonment term under the main part of s.447?Read the answer and worked solution →Under s.447, the fine for serious fraud is at least what?Read the answer and worked solution →What is the maximum fine under the main part of s.447, as a multiple of the fraud amount?Read the answer and worked solution →If the fraud involves public interest, the minimum imprisonment under s.447 is how long?Read the answer and worked solution →The main s.447 penalty applies to fraud of at least ten lakh rupees or what share of turnover, whichever is lower?Read the answer and worked solution →A small fraud below the s.447 threshold, with no public interest, carries imprisonment up to what?Read the answer and worked solution →The Explanation to s.447 says fraud includes an act, omission, concealment of fact or what else?Read the answer and worked solution →Under the s.447 definition, must wrongful gain or loss be shown for an act to be fraud?Read the answer and worked solution →In s.447, wrongful gain means gain by unlawful means of what?Read the answer and worked solution →In s.447, wrongful loss means loss by unlawful means of property to which the loser is what?Read the answer and worked solution →The s.447 definition of fraud requires an act done with what intent?Read the answer and worked solution →What is fraud in law, in general terms?Read the answer and worked solution →Which remedy for civil fraud reverses a fraudulently obtained agreement?Read the answer and worked solution →Why is proving fraud in court often described as difficult?Read the answer and worked solution →The most general form of criminal fraud is described as theft by what?Read the answer and worked solution →Which statistical test is used in analytics to detect fraudulent figures in large data sets?Read the answer and worked solution →A hoax differs from fraud because it involves deliberate deception without what?Read the answer and worked solution →Which case is credited with showing the importance of forensic accounting in the 1930s?Read the answer and worked solution →Which two roles can a forensic accountant combine?Read the answer and worked solution →How does a forensic accountant's focus differ from an auditor's?Read the answer and worked solution →Which model names the three fraud elements as opportunity, pressure and rationalization?Read the answer and worked solution →An auditor tells only the Board of a large fraud. Which duty is breached?Read the answer and worked solution →A Government company has an auditor. Under s.143(5), who appoints that auditor?Read the answer and worked solution →

Worked practice questions

Auditor suspects fraud by officers. Under s.143(12), what must he do?

  1. Wait for the next AGM
  2. Report to Central Government
  3. Resign from the audit
  4. Inform the media houses
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Correct answer: B. Report to Central Government

Sub-section (12) requires immediate reporting to the Central Government, within the prescribed time and manner, once he has reason to believe an offence involving fraud has been committed.

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Section 143(12) applies to fraud committed against the company by whom?

  1. Only the directors
  2. Only the customers
  3. Officers or employees
  4. Only the promoters
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Correct answer: C. Officers or employees

The reporting duty arises for an offence involving fraud against the company by its officers or employees, not by outsiders.

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The s.143(12) duty arises when the auditor has what in the course of his duties?

  1. Reason to believe
  2. A members' complaint
  3. Proof beyond doubt
  4. A court direction
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Correct answer: A. Reason to believe

The trigger is that the auditor has reason to believe a fraud offence is being or has been committed, not proof or a complaint.

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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