Under Section 143(1), secured loans are examined to see if they are
AProperly secured
BInterest free
CFully repaid
DFully insured
Answer & Solution
Correct answer: A. Properly secured
Section 143(1)(a) requires inquiry into whether loans made on security have been properly secured and are not prejudicial to members.
Keep practising Audit Documentation
Browse all Audit Documentation questions for CA Inter, or explore more Auditing topics.
Related questions
Who should be allowed to stop or alter an audit trail process?An accounting audit trail links detailed transactions toInternal evidence becomes more reliable when internal controls areAs misstatement risk rises, the evidence an auditor should collectA direct reply from an outside party about an assertion is aRe-adding totals to test arithmetic accuracy is calledAudit evidence gathered by auditors is recorded in the auditThe auditor must comment on transactions with an adverse effect on