SAS Main Exam 2018

PC-22
Memory based(Updated)

1. AR=IR*CR*DR
2. Precision=(Materiality-Anticipated Most Likely Error)*Range of Error
3. Nature of financial attest Audit:
A. Examination and evaluation of financial records and expression of opinions on financial
statements.
B. Audit of financial systems and transaction
C. Audit of internal control and internal audit functions that assist in safeguarding assets
D. All of above
4. where the auditor disagrees with, or is unable to obtain sufficient and appropriate audit
evidence about certain items in the subject matter which are, or could be, material but not
pervasive; is known as
A. Qualified opinion (b) Adverse opinion (c) Disclaimed opinion
5. where the auditor, having obtained sufficient and appropriate audit evidence, concludes
that deviations or misstatements, whether individually or in the aggregate, are both material
and pervasive; is known as
A. Qualified opinion (b) Adverse opinion (c) Disclaimed opinion
6. SAI India shall have a code of Ethics aligned with the code of Ethics elaborated under which
ISSAI

A. ISSAI 30 (b) ISSAI 40 (c) ISSAI 50 (d) ISSAI 60

7. Quality control for SAIs

A. ISSAI 30 (b) ISSAI 40 (c) ISSAI 50 (d) ISSAI 60

8. Externally Aided Project prepared on the basis of---
A. Cash basis (b) Accural basis (c) method of accounting adopted by implementing
agency
9. Audit design: Auditors shall plan the audit in a manner that contributes to a high-quality
audit that will be carried out in an economical, efficient, effective and timely manner and in
accordance with the principles of good project management.
10. Quality Control: Auditors shall apply procedures to safeguard quality, ensuring that the
applicable requirements are met and placing emphasis on appropriate, balanced and fair
reports that add value and answer the audit questions.
11. Performance audits undertaken by SAI, India may have overlaps with other audit types (or
combined audits) and in such circumstances, which of the following points shall be
considered:

A. Elements of performance audit can be part of a more extensive audit that also covers
compliance and financial auditing aspects.
B. In the event of an overlap, the primary objective of the audit shall guide the auditors as to
which standards to apply.
C. Main objective is to promote economy, efficiency and effectiveness rather than report on
compliance.
D. All of above
12. In the conduct of performance audits which of the following specific issues need to be
addressed:
 A. Performance audit is a process in which the audit team gathers a large amount of audit-
specific information and exercises a high degree of professional judgement and discretion
concerning the relevant issues.
B. In performance auditing, even if the report is evidence-based, well-documented and
accurate, it might still be inappropriate or insufficient if it fails to give a balanced and
unbiased view, includes too few relevant viewpoints or unsatisfactorily addresses the audit
questions. These considerations shall therefore be an essential part of measures to
safeguard quality.
C. As audit objectives vary widely between different audit engagements, it is important to
define clearly what constitutes a high-quality report in the specific context of an audit
engagement.
D. All of above
13. Materiality (perhaps 2 question)
14. The primary responsibility for the prevention and detection of fraud rests with the entity’s
management and those charged with governance.
15. The authority for C&AG to lay down general principles of govt. Accounting/Scope and
extent of audit shall be determined by C&AG under which section of DPC
A. Section 10 (b) section 13 (c) section 19A (d) section 23
16. One question from DPC Section 18
17. CAAT—Computer Assisted Audit Techniques
18. Audit always give reasonable evidence but not absolute(like question)
19. Audit Notes and Audit Memorandum: Audit memorandum issued during the course of
audit for eliciting information while Audit note issued by a audit office containing the results
of audit conducted.
20. Arrange events wise of the following convention:
RAMSAR Convention (1971)>Vienna convention (1985)>Montreal Protocol (1987)>Basel
convention (1989)>CARTAGENA Protocol (2000)
21. All public sector audits have the same basic elements:
A. The three parties
B. Subject matter, criteria and subject matter information
C. Type of engagements
22. A Section 14(1) of the DPC act authorises the C&AG to audit the receipts and expenditure of
a body or authority if
(a)the amount of Government grant or loan paid to it in a financial year is not less than Rs 25
lakh & the amount of such grant or loan is not less than 75% of its total expenditure during
the year
23. Performance audit is an independent assessment or examination of the extent to which an
organisation, programme or scheme operates economically, efficiently and effectively.
Which Regulation of Regulations on Audit and Accounts, 2007 is quoted above?
A. 48
B. 58
C. 68
D. 78
24. According to which section of the DPC Act, the scope and extent of audit shall be determined by
the CAG?
A. 20 B. 21 C. 22 D. 23
25. Population value Rs.8,00,00,000, Materiality Rs.8,00,000, Anticipated error Rs.3,00,000, Range
of error possible but with no room for unexpected error 80%. Calculate Planning Precision. [only
formula asked]
A. 640000
B. 500000
 C. 400000
D. 240000
26. The method of analysis of the relationship between more than one financial statement
component is referred to as-
A. ratio analysis
B. system analysis
C. regression analysis
D. business analysis
E. predictive analysis
27. The audit procedures like inspection, observation, enquiry and confirmation, computation and
analysis are applied to transactions and account balances. Instead of applying such techniques to
an entire set of data (100% testing), the procedure to draw conclusions about the entire set of
data (the population) by testing a representative sample of items selected from it is called-
A. audit sampling
B. audit testing
C. audit analysis
D. audit conclusion
28. Which method is mainly used in Substantive test of details in financial audits?
A. Attribute Sampling
B. Monetary Unit Sampling (MUS)
C. Multi stage sampling
D. stratified random sampling
29. While the various departments/sectors are accountable for policy formulation and
implementation, the organisational hierarchies within each Department /sector are typically
organised as Directorates/Commissionerates, zones, divisions, circles, ranges etc., and further
down to the last mile implementing agencies. All these units together implement the
Government policy and expend public money or collect public revenues and can be called as the-
A. audit universe
B. audit unit
C. auditable entity
D. any of the above
30. Which auditing standard is currently being used?
A. 1997 B. 2002 C. 2014 D. 2017
31. Prior to Auditing Standard 2017, which standard was being used?
A. 1997 B. 2002 C. 2004 D. 2007
32. Which one is not correct among the three basic elements of public sector audits?
A. The three parties
B. Subject matter, criteria and subject matter information
C. Types of engagement
D. Assurance
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Note: Some questions may be different from exam but mostly related to exam