List of top Commerce Questions on Contemporary Audit

The Statutory Central Auditors are required to submit the Long Form Audit Report (LFAR) to the banks latest by:

Audit carried out throughout the year to check effectiveness of internal control system of the organization is called:

Arrange the following steps in Audit process in the correct order: (A). Formulation of audit plan.
(B). Issuance of audit report.
(C). Engagement of auditor
(D). Performing substantive procedures.

Mr. Ram is a Chartered Accountant in practice. His sister is the CEO of XYZ Limited. State whether Mr. Ram is qualified or disqualified to be an auditor of the ABC Limited, which is a subsidiary company of XYZ Limited.

Which of the following are the duties of an auditor?
(A) To measure business events in terms of profit and loss and communicate the financial conditions of the business
(B) To prepare a balance sheet representing a true and fair picture of the financial position of the business
(C) To prepare final accounts, computation of taxable income, etc., while acting as an accountant
(D) To report whether the profit and loss account represents a true and fair picture of the profit or loss

Clerical errors in the book of accounts are classified as:

If internal control is effective, the auditor may confine his work to a representative number of transactions and avoid detailed verification.