Q.1 Which organization issues International Standards on Auditing (ISAs)?
A. IFRS Foundation
B. IAASB
C. ICAI
D. PCAOB
Explanation - The International Auditing and Assurance Standards Board (IAASB) issues ISAs to provide guidelines for auditors globally.
Correct answer is: B. IAASB
Q.2 Which standard deals with 'Audit Documentation'?
A. ISA 210
B. ISA 230
C. ISA 500
D. ISA 700
Explanation - ISA 230 deals with audit documentation, requiring auditors to prepare proper records of audit procedures and conclusions.
Correct answer is: B. ISA 230
Q.3 SA 700 relates to which aspect of auditing?
A. Planning an audit
B. Audit opinion formation
C. Internal controls testing
D. Risk assessment
Explanation - SA 700 deals with forming an opinion and reporting on financial statements by the auditor.
Correct answer is: B. Audit opinion formation
Q.4 Which Indian body issues Standards on Auditing (SAs)?
A. RBI
B. SEBI
C. ICAI
D. MCA
Explanation - The Institute of Chartered Accountants of India (ICAI) issues Standards on Auditing applicable in India.
Correct answer is: C. ICAI
Q.5 SA 210 deals with:
A. Agreeing on audit terms
B. Audit evidence
C. Subsequent events
D. Going concern
Explanation - SA 210 relates to agreeing on the terms of audit engagements between the auditor and client.
Correct answer is: A. Agreeing on audit terms
Q.6 Which SA addresses 'Audit Evidence'?
A. SA 500
B. SA 520
C. SA 330
D. SA 260
Explanation - SA 500 establishes standards for what constitutes sufficient and appropriate audit evidence.
Correct answer is: A. SA 500
Q.7 SA 570 deals with:
A. Related parties
B. Subsequent events
C. Going concern
D. Audit planning
Explanation - SA 570 provides guidance on the auditor’s responsibilities regarding the going concern assumption.
Correct answer is: C. Going concern
Q.8 Which standard emphasizes communication with those charged with governance?
A. SA 200
B. SA 260
C. SA 700
D. SA 315
Explanation - SA 260 deals with communication between auditors and those charged with governance such as directors.
Correct answer is: B. SA 260
Q.9 SA 240 focuses on which key area?
A. Fraud in financial statements
B. Going concern
C. Audit documentation
D. Related party transactions
Explanation - SA 240 deals with the auditor’s responsibility to consider fraud and misstatements in an audit.
Correct answer is: A. Fraud in financial statements
Q.10 Which SA explains the overall objectives of the independent auditor?
A. SA 200
B. SA 210
C. SA 700
D. SA 230
Explanation - SA 200 provides the overall objectives of independent auditors in conducting an audit.
Correct answer is: A. SA 200
Q.11 Which of the following is NOT a Standard on Auditing?
A. SA 501
B. SA 505
C. SA 302
D. SA 560
Explanation - There is no SA 302; it is a number assigned to PCAOB standards in the U.S.
Correct answer is: C. SA 302
Q.12 SA 320 is related to:
A. Audit materiality
B. Subsequent events
C. Audit planning
D. Fraud risk
Explanation - SA 320 deals with materiality in planning and performing an audit.
Correct answer is: A. Audit materiality
Q.13 Which SA covers subsequent events?
A. SA 550
B. SA 560
C. SA 570
D. SA 580
Explanation - SA 560 addresses the auditor’s responsibilities regarding subsequent events after the reporting period.
Correct answer is: B. SA 560
Q.14 SA 315 is about:
A. Risk assessment
B. Materiality
C. Audit sampling
D. Audit documentation
Explanation - SA 315 provides guidance on identifying and assessing the risks of material misstatement.
Correct answer is: A. Risk assessment
Q.15 Which SA deals with 'Written Representations'?
A. SA 580
B. SA 560
C. SA 402
D. SA 330
Explanation - SA 580 deals with written representations obtained from management.
Correct answer is: A. SA 580
Q.16 Which SA provides guidance on 'Analytical Procedures'?
A. SA 520
B. SA 500
C. SA 330
D. SA 600
Explanation - SA 520 deals with analytical procedures used by auditors to evaluate financial information.
Correct answer is: A. SA 520
Q.17 SA 402 deals with:
A. Audit risk
B. Service organization controls
C. Material misstatement
D. Going concern
Explanation - SA 402 provides guidance on considering service organization controls in audits.
Correct answer is: B. Service organization controls
Q.18 Which SA deals with audit sampling?
A. SA 500
B. SA 530
C. SA 520
D. SA 230
Explanation - SA 530 provides standards for using audit sampling as an evidence-gathering technique.
Correct answer is: B. SA 530
Q.19 SA 505 provides guidance on:
A. External confirmations
B. Internal audit reliance
C. Going concern
D. Materiality
Explanation - SA 505 deals with using external confirmations as audit evidence.
Correct answer is: A. External confirmations
Q.20 Which standard deals with the use of internal auditors’ work?
A. SA 600
B. SA 610
C. SA 402
D. SA 230
Explanation - SA 610 provides guidance on using the work of internal auditors in external audits.
Correct answer is: B. SA 610
Q.21 SA 550 is concerned with:
A. Subsequent events
B. Fraud risk
C. Related parties
D. Audit sampling
Explanation - SA 550 deals with the auditor’s responsibilities regarding related party relationships and disclosures.
Correct answer is: C. Related parties
Q.22 Which SA guides auditors in group audits?
A. SA 600
B. SA 610
C. SA 700
D. SA 402
Explanation - SA 600 provides guidance on using the work of component auditors in group audits.
Correct answer is: A. SA 600
Q.23 Which SA relates to the auditor’s report on financial statements?
A. SA 700
B. SA 720
C. SA 240
D. SA 320
Explanation - SA 700 is about forming an opinion and reporting on financial statements.
Correct answer is: A. SA 700
Q.24 SA 720 deals with auditor’s responsibilities relating to:
A. Other information
B. Audit materiality
C. Fraud
D. Internal controls
Explanation - SA 720 deals with auditor’s responsibilities relating to other information presented with audited financial statements.
Correct answer is: A. Other information
Q.25 Which SA deals with 'Overall audit strategy and planning'?
A. SA 300
B. SA 320
C. SA 315
D. SA 330
Explanation - SA 300 provides guidance on planning an audit of financial statements.
Correct answer is: A. SA 300