Audit and Assurance question bank

 SRM INSTITUTE OF SCIENCE & TECHNOLOGY, Ramapuram Campus

Faculty of Science and Humanities

Department of Commerce 

QUESTION BANK

Course Name: Audit and Assurance Date: 22/12/2024

Course Code: UCM23402J  

Programme: B.Com 2023Regulations 

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UNIT 1

Short Questionns:

Define audit

List out the elements of assurance engagement 

Write a short note on Appointment of auditor. 

What are the rights of external auditor ?

List out the objectives of corporate governance. 

List out the benefits of audit committee.

What do you mean by external audit ?

What are the types of assurance engagement? 

Write a short note on removal of auditors

Enumerate the duties of external auditor.

List out the duties of external auditors

What are the Objectives of corporate governance.

What are the benefits of audit committee?

State the importance of corporate governance.

What are the limitations of audit committee?

Detailed Questions:

Explain the elements of assurance engagement.

State the types of assurance engagement.

Explain the importance of internal control and risk management.

Explain the objectives and principles of external audit engagement.

Explain regulation for external audit statutory regulation.

What are the rights and duties of external auditors? Explain in detail.

Enumerate international standards on auditing 

Write a note on conceptual framework on auditors.

UNIT II

Short Questions:

Define audit planning 

Wirte a not on professional ethics in auditing 

Write a short note on materiality 

What do you mean by control risk

What is mean by inherent risk

List out the benefits of quality management 

Write a note on misstatements.

What are the responsibilities of internal auditors

Write a short note on external auditors responsibilities

What are the benefits of audit planning 

List out the importance of documentation

What do you mean by audit Working papers.

Detailed Questions:

State the steps involved in planning and performance of engagement audit 

Nature and purpose of analytical procedures in planning 

State the objectives and importance of quality control procedures .

Explain planning and risk assessment in auditing .

Describethe verification and valuation of Assets.

UNIT III

Short Questions

What are the five components of internal control as defined by the COSO framework?

Define the term "significant deficiencies" in internal control systems.

What are the main limitations of internal control components?

Explain the role of auditors in evaluating internal control systems.

What is the purpose of tests of control in auditing?

Describe the difference between general IT controls and application controls.

What is the importance of communication on internal control systems between auditors and management?

What are key controls in an internal control system?

What is the significance of a report on significant deficiencies in internal control?

How does outsourcing impact the internal audit function?

Detailed Questions:

Discuss the five components of internal control in detail and explain how they interrelate to ensure an effective control environment.

Evaluate the role of internal audit in corporate governance and identify the factors that contribute to best practices in internal audit structure and operations.

Compare and contrast the responsibilities, scope, and limitations of external and internal audits. How do these differences affect the approach to auditing?

Explain the advantages and disadvantages of internal audit outsourcing

Analyze the importance of computer systems controls, focusing on both general IT controls and application controls. 

Discuss the key objectives and activities involved in testing internal controls.

Discuss format and content of internal audit reports. 

UNIT IV

Short Questions:

What is the purpose of financial statement assertions in the context of audit evidence?

Define audit evidence and explain why it is crucial in the audit process.

Write a short note on account balances and related disclosures

Explain the procedure of external confirmation as an audit evidence-gathering method.

What is the purpose of recalculation as an audit procedure?

How do analytical procedures help in gathering audit evidence?

Define "relevance" and "reliability" in the context of audit evidence.

What is the primary difference between tests of control and substantive procedures?

What is the need for audit sampling in the auditing process?

Explain the concept of audit sampling and its application in auditing specific items like receivables.

Detailed Questions:

Evaluate various types of audit evidence and its importance.

 Discuss the quality and quantity of audit evidence required for a reliable audit opinion.

Explain the importance of audit sampling

Discuss how auditors use statistical sampling results to draw conclusions about the overall financial statements.

Analyze the audit procedures and the evidence gathering process for specific items like receivables, inventory, payables, and accruals. 

Discuss the role and use of Computer Assisted Audit Techniques (CAATs) in auditing. Provide examples of common CAATs used in modern auditing practices.

UNIT V

Short Questions:

What is the purpose of a subsequent events review?

What are the auditor's responsibilities regarding subsequent events?

What procedures should auditors follow when performing a subsequent events review?

What is the significance of the going concern assumption in auditing?

What are the responsibilities of auditors and management regarding going concern?

What are the disclosure requirements for going concern issues in financial statements?

What is the purpose of written representations in an audit?

How does the quality and reliability of written representations affect the audit?

What is the importance of audit finalization and the final review process?

What is the significance of uncorrected misstatements in the audit process?

Detailed Questions:

Discuss the procedures an auditor should undertake to review subsequent events 

Explain the significance of the going concern assumption in auditing.

Evaluate the role and procedures of written representations in an audit, and assess how their quality and reliability impact the overall audit conclusions.

Examine the importance of the overall review in the audit finalization process, 

Discuss the procedures auditors perform to ensure the financial statements are accurate and complete.

Discuss the significance of uncorrected misstatements on the audit process