CA Final Risk Assessment and Internal Control — practice questions
30 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice CA Final Risk Assessment and Internal Control in the app →Which Standard on Auditing governs Identifying and Assessing the Risks of Material Misstatement?The COSO Internal Control framework has how many integrated components?Inherent risk is BEST defined as:A "Significant Risk" under SA 315 is:The control environment includes:Risk assessment procedures (per SA 315) include all EXCEPT:The Audit Risk model expresses audit risk as:If the auditor assesses high IR and high CR for an assertion, the auditor must:A walkthrough is performed to:Test of controls (per SA 330) is necessary when:Which is NOT one of the COSO five components?Management bias risk is HIGHEST when:Which is the BEST source for understanding the entity's control environment?Information system risk for a revenue cycle (CAATs era) does NOT primarily include:In a complex group structure with multiple subsidiaries, the GROUP auditor's risk assessment under SA 315 shouWhen the auditor identifies a deficiency in internal control that, in their professional judgement, is of suffAn auditor finds that the entity's spreadsheet-based monthly close model contains a hard-coded subtotal that mWhich procedure provides the STRONGEST evidence of operating effectiveness of an automated control?Audit Risk model - if the auditor accepts a higher detection risk, this means:For a "Significant Risk" identified under SA 315, SA 330 specifically requires that:A revenue cut-off risk in a manufacturing company is BEST tested by:When designing further audit procedures, "Nature, Timing and Extent" (NTE) of procedures depends on:Under SA 540, when management uses a model to estimate Expected Credit Loss (ECL) under Ind AS 109, the auditoFor controls operating over a long period, the auditor wants to rotate testing in alternate years (per SA 330)A change in entity's revenue recognition policy mid-year would prompt the auditor to:Management override of controls is, per SA 240:Information & Communication component of internal control aims to ensure that:The Audit Risk Model implies that when materiality (M) is set lower, holding other risks constant, the auditorWhen responding to assessed risks at the financial-statement level, the auditor's overall responses include:The IT environment's impact on RoMM identification is BEST captured by: