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CA Final System and Organization Controls — practice questions — page 2

Explore 33 free System and Organization Controls questions in CA Final Auditing. Open each question or exercise to read its content, reference answers and available explanation.

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System and Organization Controls questions and exercises with answers

Showing questions 31–33 of 33.

Which examination of a potential target is normally carried out by a buyer before a merger or acquisition?Read the answer and worked solution →Reverse due diligence is an assessment of a company, usually by a third party on its behalf, done when?Read the answer and worked solution →Which audit checks the strategic fit of a deal?Read the answer and worked solution →

Worked practice questions

Which examination of a potential target is normally carried out by a buyer before a merger or acquisition?

  1. Peer review
  2. Due diligence
  3. Secretarial audit
  4. Statutory audit
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Correct answer: B. Due diligence

Due diligence is the investigation of a target by the buyer before a corporate finance transaction.

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Reverse due diligence is an assessment of a company, usually by a third party on its behalf, done when?

  1. After the winding up
  2. Before going to market
  3. During a tax raid
  4. After share allotment
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Correct answer: B. Before going to market

Self or reverse due diligence is carried out before the company is taken to market for sale.

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Which audit checks the strategic fit of a deal?

  1. Reconciliation audit
  2. Cost accounting audit
  3. Compatibility audit
  4. Secretarial audit
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Correct answer: C. Compatibility audit

The compatibility audit examines the strategic fit of the deal and whether it adds shareholder value.

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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