SAs Assignment

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Practice these Questions, if required take help of Notes 👍

1. In the course of audit of Quick Ltd, you suspect that the management has made misstatements in the financial
statements intentionally to deceive the users and to succumb to pressures to meet market expectations. Elucidate
how the fraudulent financial reporting may be accomplished and also discuss the techniques of committing fraud by
management overriding controls.

2. As an Auditor of TRP Ltd., you are suspicious that there might be non-compliance with laws and regulations to which
the Company is subject to. Indicate the possible areas or aspects where you may have to look out for forming an
opinion as to whether your suspicion has some basis to further inquire.

3. Moon Ltd. is a dealer in electronic appliances. The Company has a centralised warehouse at the outskirts of Mumbai.
The Auditors of the company M/s JK Associates normally attend the physical verification of stocks carried out by the
Management at the end of the financial year. However, on account of certain disturbances in the region, the physical
inventory counting could not be carried out at the year end. The stock taking is decided to be done by management
at some other date subsequently, after a month.

In the light of the above facts:

Enumerate the audit procedures to be considered by M/s JK Associates, if physical inventory counting is conducted at
a date other than the date of the financial statements with reference to the relevant Standard on Auditing.

4. Y& Co., Chartered Accountants have come across in the course of audit of a company that certain machinery had
been imported for production of new product. Although the Auditors have applied the concept of materiality for the
Financial Statements as a whole, they now want to re-evaluate the materiality concept for this transaction involving
foreign exchange. Give your views in this regard?

5. In the course of audit of QRT Ltd, its statutory auditor wants to be sure of the adequacy of related party disclosures?
Kindly guide the auditor in identifying the possible source of related party information.

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Happy Learning! J

AUDIT ASSIGNMENT CA SHUBHAM KESWANI