Audit - MCQs of ICAI Compiled by CA Pankaj Garg Sir
Audit - MCQs of ICAI Compiled by CA Pankaj Garg Sir
Audit - MCQs of ICAI Compiled by CA Pankaj Garg Sir
com
Downloaded from castudyweb.com
1.1
Downloaded from castudyweb.com
3 ZOV is a private limited company engaged in the business of mining. The company’s
operations are fairly large and its turnover is INR 4,000 crores on an annual basis. Due to the
nature of the business and the size of the company, the company has appointed a firm of
Chartered Accountants as its statutory auditors who have the relevant experience of the
industry in which the company has been operating.
During the course of the audit of the financial statements for the year ended 31 March 2019,
the audit team had various observations which resulted in many adjustments in the
financial statements of the company and that was also appreciated by the CFO of the
company.
1.2
Downloaded from castudyweb.com
1.3
Downloaded from castudyweb.com
1.4
Downloaded from castudyweb.com
Answers
***************
For Integrated Case Studies, Suggested Answers of Past Exams, Mock Test
Papers, Class Notes, Concept Videos, Revisionary Content and other
Resources, access Knowledge Portal/LMS at
www.altclasses.in/www.pankajgargclasses.com
1.5
Downloaded from castudyweb.com
2.1
Downloaded from castudyweb.com
2.2
Downloaded from castudyweb.com
2.3
Downloaded from castudyweb.com
Answers
****************
For Integrated Case Studies, Suggested Answers of Past Exams, Mock Test
Papers, Class Notes, Concept Videos, Revisionary Content and other
Resources, access Knowledge Portal/LMS at
www.altclasses.in/www.pankajgargclasses.com
2.4
Downloaded from castudyweb.com
3.1
Downloaded from castudyweb.com
4 AJ Private Ltd is in the business of telecom and have significant operations across India
predominantly in Northern India.
The statutory auditors of the company have been continuing for the last 3 years and have been
issuing clean report.
For the financial year ended 31 March 2019, the statutory auditors commenced their work in March
2019 as per discussions with the management and with a plan to complete the audit by first week of
May 2019.
The audit team concluded the work as per the agreed timelines and the financial statements and
audit report were signed on 5 May 2019 along with the engagement letter for the financial year ended
31 March 2019.
In the given situation, please advise which of the following would be correct.
(a) The engagement letter should have been signed before commencing the audit work.
(b) The engagement letter should have been signed at least a day before signing the audit report.
(c) The engagement letter should have been signed at least a day before signing the financial statements.
(d) The engagement letter is optional in case of a private company and hence can be signed anytime.
5 RIM Private Ltd is engaged in the business of manufacturing of water bottles and is experiencing
significant increase in turnover year on year. It is a subsidiary of RIM Gmbh, based out of Germany.
During the financial year ended 31 March 2019, the company carried out a detailed physical
verification of its inventory and property, plant and equipment.
During the year, various other activities were carried out to increase efficiency in operations and
reductions of costs.
The statutory auditors of the company started their audit work from April 2019 and requested for a
documentation on changes in processes and activities during the year as well as any resultant impact
of the same on management controls.
3.2
Downloaded from castudyweb.com
Answers
***************
For Integrated Case Studies, Suggested Answers of Past Exams, Mock Test
Papers, Class Notes, Concept Videos, Revisionary Content and other
Resources, access Knowledge Portal/LMS at
www.altclasses.in/www.pankajgargclasses.com
3.3
Downloaded from castudyweb.com
1 KPL Private Limited is a large software company based out of Hyderabad. The annual turnover of the
company is INR 2,100 crores. The company sells software and is also involved in the implementation
of those softwares for its clients.
The major chunk of the revenue though comes from sale of software only. The company works on a
completely paper-less office and accordingly, most of the documents are available in soft copy.
During the financial year ended 31 March 2019, the auditors during the course of their audit obtained
various audit evidences some of which were in hard copy but mostly in soft copy.
On conclusion of the audit, the auditors are in a dilemma whether to maintain their documentation
entirely in hard copy or soft copy or can it be mixed of both.
After consultations with various persons, the auditors stood that the documentation for this
company, being operated in fully automated environment should be in soft copy only.
Please advise whether this understanding is correct.
(a) This is a matter of documentation of audit evidence for a client working in fully automated environment
and hence it should be in soft copy only.
(b) As per the requirements of auditing standards, this documentation can be in a mix of both soft and hard
copy.
(c) Since the client is operating in a fully automated environment, it would be important to check with them
because all this documentation has come from the client only.
(d) As per the requirements of auditing standards, documentation is not required in case of a client working
in automated environment because everything is automated and can be accessed easily at any point of time.
2 KJ Private Ltd is engaged in the business of e-commerce wherein most of the operations are
automated. The company has SAP at its ERP package and is planning to upgrade the SAP version.
Currently, the version of SAP being used is fine but the higher version would lead to increased
efficiencies and hence the company is considering this plan which will also involve a huge outlay.
KPP & Associates, were appointed as the statutory auditors of this company for the year ended 31
March 2019 and the statutory audit firm has been working in this industry for long but most of the
work which the firm did was more of risk advisory or internal audit.
For the first time, this audit will be conducted and that’s why the audit team started obtaining
understanding of the operations of the company which included understanding of the SAP system of
the company.
However, the management of the company was not comfortable with this approach of the audit team
particularly because audit team was spending good time on understanding of the IT systems of the
company.
The management suggested that the auditors should limit their understanding and should perform
audit procedures rather than getting into business/ operations.
But the auditors have a different view on this matter and because of which work has got stuck.
In the given situation, please suggest what should be the course of action.
(a) The approach of audit team to obtain detailed understanding of the company before starting with the
audit procedures is absolutely fine. If the auditors don’t understand the systems properly the audit
procedures may not be appropriate.
4.1
Downloaded from castudyweb.com
4 AJ Private Ltd is in the business of construction and infrastructure having an annual turnover of INR
1,100 crores. The operations of the company are run efficiently driven by the well laid out policies
and procedures. The processes of the company are very strong and are well documented and
properly communicated to its employees, as required.
4.2
Downloaded from castudyweb.com
5 RIM Private Ltd is engaged in the business of manufacturing of cranes and other construction
equipments. The nature of the operations are such that purchases are quite significant even though
the sales may or may not be very significant, in terms of number of transactions during the year.
The company’s statutory auditors, have also obtained certain audit tools to help the audit team on
various audit procedures to bring efficiency in various audits.
During the course of the audit of the financial statements for the financial year ended 31 March 2019,
the auditors used those audit tools (also known as computed assisted audit techniques) for sampling
procedures and data analytics.
The outcome of the tools resulted in some analysis and requirements which the audit team requested
from the client. However, the client refused to provide any such information because as per the client
all these tools were those of the auditor and any outcome of the same needs to be handled by
themselves instead of asking the management.
The auditors have suggested that such an attitude of non-cooperation would not help the either party
and would defeat the objective of the audit. The management of the company is, however, ready to
provide any other information to the auditors.
In this situation, please advise both the management and the auditors.
(a) Since the management is ready to provide any other information, the auditor should obtain this
information as well by not disclosing the management that it is outcome of any audit tool.
4.3
Downloaded from castudyweb.com
Answers
***************
For Integrated Case Studies, Suggested Answers of Past Exams, Mock Test
Papers, Class Notes, Concept Videos, Revisionary Content and other
Resources, access Knowledge Portal/LMS at
www.altclasses.in/www.pankajgargclasses.com
4.4
Downloaded from castudyweb.com
COMPANY AUDIT
5
1 Re-opening of accounts on Court’s or Tribunal’s orders: Section 130 of the Companies Act, 2013 states
that a company shall not re-open its books of account and not recast its financial statements, unless
an application in this regard is made by the Central Government, the Income-tax authorities, the
Securities and Exchange Board of India (SEBI), any other statutory regulatory body or authority or
any person concerned and an order is made by a court of competent jurisdiction or the Tribunal to
the effect that Jain Ltd. has an annual turnover of Rs. 350 crores and has been into losses for the last 2
years. The operations of the company are good. Due to some technology changes, the company started
facing competition and hence started incurring losses. The company plans to revive in the next 1-2
years with the improvements in its processes. During the year ended 31 March, 2019, the
management of the company came across certain transactions relating to the financial year ended 31
March 2018 which were erroneously missed to be accounted for. This would result into losses and
hence the management is considering to take this to the right financial year and for that purpose to
re-open its accounts for the financial year ended 31 March 2018. Please advise.
(a) The position of the management is correct.
(b) The action of the management is correct, however, the reason behind reopening the accounts of last
year does not seem to be correct.
(c) The action of the management would have been correct had it been advised by the auditors of the
company and for the same management should have taken approval from SEBI.
(d) The action of the management is not correct.
2 Rimmi Ltd. was set up initially as a private limited company. Subsequently, it got converted into a
public company. The company’s management has plans of expansion but the business was not
growing in an organic manner. Therefore, the management decided to acquire the competitors.
During the financial year ended 31 March, 2019, the company acquired two companies in India and
France in September, 2018 and January, 2019 respectively. The company controls both of these
companies as per the criterias laid down in the Companies Act 2013 as well as the applicable
accounting standards.
The management started discussions with the auditors regarding the audit wherein it was also
pointed out by the auditors that the management should also prepare consolidated financial
statements (CFS), if they want. Management needs your advise on the same.
(a) Management must prepare the CFS as per the requirements of the Companies Act, 2013.
(b) Management has a choice not to prepare CFS but should go for that considering that its true
performance and financial position can then be demonstrated.
(c) Management could have prepared CFS if the acquired companies would have completed at least one
year post acquisition.
(d) Management must prepare CFS but it should include only the company acquired in India.
5.1
Downloaded from castudyweb.com
4 AJ Private Ltd. was incorporated on 21 March, 2018 and has limited operations. However, the capital
induction in the company was huge because it would be capital intensive. The company is in the
process to set up a plant in Karnataka which should be completed by 31 May, 2019. The company’s
management prepared its financial statements for the year ended 31 March, 2019. The auditors were
also called to start the work in April 2019. The auditors would be able to complete their work by 31
May, 2019 and accordingly would issue their audit report by 1st week of June, 2019 as per the plan
agreed with the management. The auditors have some observations related to preparations of
financial statements which are not in compliance with Schedule III and most importantly the point
related to capitalization of the plant as Property, Plant and Equipment in the financial statements for
the year ended 31 March, 2019. Please suggest which of the following statements would be correct.
(a) The compliance of Schedule III shall start from 1 April 2019 for this company as per Companies Accounts
(Amendment) Rules 2016.
(b) The compliance of Schedule III shall start from first financial period, however, some exemptions would
be applicable as per Companies Accounts Rules 2014.
(c) There should be full compliance of Schedule III and plant should be kept as CWIP as per Schedule III.
(d) There should be full compliance of Schedule III and plant should be shown as PPE as per Schedule III.
5 SHRD Private Ltd is engaged in the business of software and consultancy. The company has an annual
turnover of Rs. 2,000 crores but its profit margins are not very good as compared to the industry standards.
For the financial year ended 31 March 2019, the company proposed appointment of its statutory auditors at
its general meeting, however, the remuneration was not finalized. The statutory auditors completed the
engagement formalities including the engagement letter between the company and the auditors and it was
decided that the engagement letter be signed without fee i.e. with the clause that the fee to be mutually
decided. Please provide your views on this.
(a) Such engagement letter is not valid.
(b) Engagement letter with such arrangement is valid.
5.2
Downloaded from castudyweb.com
Answers
***************
For Integrated Case Studies, Suggested Answers of Past Exams, Mock Test
Papers, Class Notes, Concept Videos, Revisionary Content and other
Resources, access Knowledge Portal/LMS at
www.altclasses.in/www.pankajgargclasses.com
5.3
Downloaded from castudyweb.com
6 AUDIT REPORTS
1 KPI Ltd is a joint venture of KPI Inc, a company based in US, and OPQ Ltd, a company based in
Japan (hereinafter referred to as ‘JV partners’). KPI Ltd was registered in India and is
operating as a marketing support company for KPI Inc. All the costs of KPI Ltd are incurred
in India and entire revenue of KPI Inc is generated in USD. The entire funding requirements
of KPI Ltd are taken care of by the JV partners. Since KPI Ltd is based in India, hence it is also
required to get its financial statements audited.
The company appointed new auditors for the audit of the financial statements for the year
ended 31 March 2019 after doing all appointment formalities wherein auditors also
confirmed their eligibility for appointment including independence.
The statutory auditors have completed their audit and did not come up any significant
observations. Management of KPI Ltd was also very pleased with the working style of the
auditors.
When the auditors issued their final audit report, the management observed that the
auditors did not state anything related to their compliance in respect of ethical
requirements regarding independence etc. Further, the audit report was also silent on the
requirement related to auditor’s communication with those charged with governance in
respect of matters related to planned scope & timing of audit and any significant findings.
The management requested that the auditors should revisit their report and should include
these points in their report, however, as per the auditors all these communications were
already completed by them and hence they were not required to form part of the audit
report.
On the basis of above mentioned facts, please suggest which of the following should be
correct.
(a) The auditing standards do not require the auditors to comment on the points which the
management is requesting i.e. ethical requirements or matters related to planned scope &
timing of audit or any significant findings etc. However, if the auditor wants to include that on
the basis of his agreed terms with the management, he may do so.
(b) The auditing standards require the auditors to comment on the points which the
management is requesting i.e. ethical requirements or matters related to planned scope &
timing of audit or any significant findings etc. Hence, the auditors should issue rectified
report.
(c) The ethical requirements are already completed by the auditors at the time of appointment
itself. Since the audit is completed, there is no need to comment on the planned scope &
timing of audit. Since there are no significant findings so this communication is also not
possible. Hence, the auditors need not revisit their report.
(d) The ethical requirements are already completed by the auditors at the time of appointment
itself and there are no significant findings, hence, there is no need to comment on these
points. However, the auditors should state that they communicate with those charged with
governance regarding the planned scope & timing of audit. Therefore, the auditors should
revisit their report.
6.1
Downloaded from castudyweb.com
6.2
Downloaded from castudyweb.com
4 BDJ Ltd is engaged in the business of providing management consultancy services and have
been in operation for the last 15 years. The company’s financial reporting process is very
good and its statutory auditors always issued clean report on the audit of the financial
statements of the company. The auditors were required to be rotated due to mandatory
audit rotation requirement of the Companies Act 2013.
RNJ & Associates, a firm of Chartered Accountants, was appointed as the new auditor of the
company for a term of 5 years and have to start their first audit for the financial year ended
31 March 2019.
The auditors had a detailed and clear discussion with the management that they will
perform their audit procedures in respect of opening balances along with the audit
procedures for the financial year ended 31 March 2019.
Management agreed with that and the audit was completed as per the plan.
The auditors did not have any significant observations and hence they communicated to the
management that their report will be clean. Management was quite happy with this and also
requested the auditors to share draft report before issuing the final report.
In the draft audit report, all the particulars were fine except ‘other matters paragraph’
wherein the auditors gave a reference that the financial statements for the comparative year
ended 31 March 2018 was audited by another auditor. Management asked the audit team to
remove this paragraph as the auditors had performed all the audit procedures on opening
balances also. But the auditors did not agree with the management.
Please advise the auditor or the management whoever is incorrect with the right guidance.
(a) The contention of the management is valid. After performing all the audit procedures, an
auditor should not pass on the responsibility to another auditor by including such references
in his audit report.
6.3
Downloaded from castudyweb.com
5 SKJ Private Ltd has an annual turnover of INR 200 crores and profits of INR 25 crores. The
company is engaged in the business of textiles and has fairly stable operations over the
years. There has not been much growth in the company in the last few years despite the
attempts of the management. Currently the management is more focused towards cost
cutting and has been considering all the options to achieve that objective.
The statutory auditors of the company have been auditing the financial statements for the
last 3 years and have issued clean reports over these years.
During the financial year ended 31 March 2019, management got a large project from a new
customer which resulted in significant increase in the turnover of the company. However,
the profitability of the company did not improve much because the margins in the contract
were not high.
The statutory auditors during the course of their audit of financial statements for the year
ended 31 March 2019 (their fourth year of audit) did not agree with the revenue recognition
criteria followed by the company. Since the matter was significant, lot of discussions/
debates happened between the auditor and the management. But it was finally agreed that
the auditors would qualify their audit report.
Auditors wanted that the management should explain this matter in detail in the notes to
accounts to the financial statement over which the auditors are qualifying the audit report.
However, the management had a different view. Management said that if the auditor is
qualifying his report then why should the management also highlight that matter in the
financial statement and hence refused to include any note for the same.
Because of this conflict, audit is not getting concluded. You are requested to give your view
in respect of this matter so that the matter gets concluded.
(a) In the given situation, if the management does not agree to give a note in the financial
statements then the auditor should not hold the audit report. However, in such a case, the
auditor would need to give disclaimer of opinion in his report instead of qualification.
(b) The argument of the management seems correct. Auditor cannot do both the things i.e. to
qualify and then also get that highlighted in the financial statements. That note would not be
beneficial for the users of the financial statements.
(c) In case of such matters related to revenue recognition, it is always better to give detailed
explanation in the notes to accounts to the financial statements. If the explanation is
satisfactory then the auditor should also consider giving emphasis of matter instead of
qualification.
6.4
Downloaded from castudyweb.com
6 While conducting the current year audit of Finco Ltd, the auditor obtains audit evidence that
a material misstatement exists in the prior period financial statements. This misstatement
was related to recognition of research and development expenditure. The provisions of Ind
AS 38 Intangible Assets relating to capitalisation of development expenditure was not
applied properly. On this, unmodified opinion had been previously issued. The current
auditor verified that the misstatement had not been dealt with as required under Ind AS 8
Accounting Policies, Changes in Accounting Estimates and Errors. Accordingly, the current
auditor will:
(a) Express an unmodified opinion in the auditor’s report on the current period financial
statements since it was related to the prior year.
(b) Express a qualified opinion in the auditor’s report on the current period financial statements,
modified with respect to the corresponding figures included therein.
(c) Express a qualified or an adverse opinion in the auditor’s report on the current period
financial statements modified with respect to the corresponding figures included therein.
(d) Express an adverse opinion in the auditor’s report on the current period financial statements,
modified with respect to the corresponding figures included therein.
Answers
***************
For Integrated Case Studies, Suggested Answers of Past Exams, Mock Test
Papers, Class Notes, Concept Videos, Revisionary Content and other
Resources, access Knowledge Portal/LMS at
www.altclasses.in/www.pankajgargclasses.com
6.5
Downloaded from castudyweb.com
2 ABC Ltd is one of the top 1000 listed entities on the basis of market capitalisation. The Board
of Directors of ABC Ltd does not comprise of any women director. The Statutory Auditor who
is certifying Corporate Governance as per SEBI regulations, has to ascertain that –
(a) the Board of directors will have at least 2 independent woman director.
(b) the Board of directors will have at least 1 independent woman director.
(c) the Board of directors will have at least 5 independent woman director.
(d) None of the above.
3 The auditor should ensure that the board of directors of the top 100 listed entities shall
comprise of –
(a) not less than 7 directors.
(b) not less than 4 directors.
(c) not less than 6 directors.
(d) not less than 2 directors
4 Annual Remuneration payable to a single non-executive director of ABC Ltd exceeds 25% of
the total annual remuneration payable to all non-executive directors.
(a) Approval of shareholders by special resolution shall be obtained every year.
(b) Approval of shareholders in general meeting shall be obtained every year.
(c) None of the above
(d) Approval of Board of Directors.
5 The Board of Directors of XYZ Ltd, one of the top 2000 listed entities meets 4 times a year.
What should be the quorum of the Board of Directors from 1st April 2020-
(a) 1/3rd of its total strength or 3 directors, whichever is higher, including at least 1 independent
director.
(b) 1/3rd of its total strength or 4 directors, whichever is higher, including at least 1 independent
director.
(c) 1/3rd of its total strength or 3 directors, whichever is higher, including at least 2 independent
director.
(d) 1/3rd of its total strength or 3 directors, whichever is higher, including at least 1 non-
executive director.
7.1
Downloaded from castudyweb.com
Answers
***************
For Integrated Case Studies, Suggested Answers of Past Exams, Mock Test
Papers, Class Notes, Concept Videos, Revisionary Content and other
Resources, access Knowledge Portal/LMS at
www.altclasses.in/www.pankajgargclasses.com
7.2
Downloaded from castudyweb.com
2 KB Ltd is engaged in the business of construction. It has multiple subsidiaries and associates
in India. The company acquired PPP Gmbh in Germany on 1 February 2019. The company
also obtained control in PPP Gmbh on the same date. Its investment in PPP Gmbh was of a
huge amount. The company has been preparing its CFS over the last few years and this has
also become a matter of concern for the company for the year ended 31 March 2019. The
management is of the view that consolidation of PPP Gmbh would not be required in CFS for
the year ended 31 March 2019 because this is the first year of acquisition. However, the
auditors have not been agreeing for the same. The timeline of submission of audited
financial statements is due in few months time.
In the meantime, the management moved on the consolidation of PPP Gmbh taking audited
financial statements of PPP Gmbh which are available in the GAAP of its local country and
GAAP conversion adjustments from its local GAAP to Indian GAAP have been made by the
parent company. GAAP conversion adjustments are significant at CFS level. In the meantime,
the management has also been consulting whether the consolidation would be required or
not also considering the fact that comparative figures in case of PPP Gmbh would not be
available.
8.1
Downloaded from castudyweb.com
3 VDN Ltd is a medium-sized company engaged in the business of retail. It has two subsidiaries
and one joint venture. Both the subsidiaries are larger in size as compared to the parent
company. The accounting policies of the parent company, its subsidiaries and joint venture
were same. However, during the year ended 31 March 2019, one of its subsidiary, SMA Pvt
Ltd changed the method of depreciation of Property, plant and equipment (PPE) to written
down value method which is different from the method followed by the parent company i.e.
Straight line method. Further this subsidiary also changed the method of valuation from
FIFO to Weighted average method which has become different from parent as the parent
follows FIFO method.
These changes were made by the subsidiary because it reflected the better picture of its
standalone financial statements. Now for the purpose of CFS, the auditors have asked the
management of parent company to ensure that accounting policies of the group companies
should align with that of parent in line with the requirements of accounting standard. But
the management of parent and subsidiary company believe that out of three group
companies other than parent, only one group company requires this change for the purpose
of consolidation and the same should be ignored by the auditors. Please suggest.
(a) The view of management is correct.
(b) For CFS, method of depreciation of SMA Pvt Ltd may continue to be different, however,
method of valuation of inventory should be aligned with that of the parent.
(c) For CFS, method of valuation of inventory of SMA Pvt Ltd may continue to be different,
however, method of depreciation should be aligned with that of the parent.
(d) The auditor should get these changes made in the standalone financial statements of SMA Pvt
Ltd.
8.2
Downloaded from castudyweb.com
5 Advik Ltd is an unlisted public company. The company acquired few companies in the last 3-
4 years which have been assessed as its subsidiaries/ associates/ joint ventures (hereinafter
jointly called as ‘components’). The company prepares its condensed consolidated financial
statements every quarter to review the performance of the group. In the past years, the
company used to get the financials of its components reviewed/ audited on a quarterly
basis. AJ & Co LLP is the statutory auditor of parent company and KSH & Associates is the
statutory auditor of all the components. Quarterly condensed consolidated financial
statements of the group are reviewed by the statutory auditors as per the terms of the
engagement letter.
AJ & Co LLP has communicated to Advik Ltd that in line with the requirements of the
Companies Act 2013, it would also be required to undertake audit/ limited review of all the
components which would be consolidated with those of Advik Ltd and for which KSH &
Associates are the statutory auditors currently.
Management is not agreeing with the same as they don’t want to change KSH & Associates as
auditors of the components and the requirement mentioned by AJ & Co LLP would lead to
duplication of work of auditors as well as the management. Please advise.
8.3
Downloaded from castudyweb.com
Answers
***************
For Integrated Case Studies, Suggested Answers of Past Exams, Mock Test
Papers, Class Notes, Concept Videos, Revisionary Content and other
Resources, access Knowledge Portal/LMS at
www.altclasses.in/www.pankajgargclasses.com
8.4
Downloaded from castudyweb.com
9 AUDIT OF BANKS
1 You are the internal auditor of FCD Bank Limited for the year 2018-19 and the bank
maintains all the data on computer. You are instructed by your senior to verify the loan
against fixed deposits of the Navi Mumbai branch. As per the scope of audit, you need to
ensure that proper lien has been marked on all the fixed deposits against which loan has
been issued. Which of the following procedure you will follow for the same:
(a) Ensure that all the fixed deposit receipts are attached along with the approved loan
documents.
(b) Ensure that all the fixed deposit receipts, against which the loan has been sanctioned, are
discharged in favour of bank and check that the lien is marked in the computer software.
(c) Discuss the process followed for lien marking with the branch manager.
(d) Ensure that all the fixed deposit receipts, against which the loan has been sanctioned, are
discharged in favour of bank, check that the lien is marked in the computer software and the
fixed deposit should be kept separately with the branch manager.
2 PFS Bank was engaged in the business of providing Portfolio Management Services to its
customers, for which it took prior approval from RBI. Your firm has been appointed as the
statutory auditors of the Bank’s financial statements for the year 2018-19. Your senior has
instructed you to verify the transactions of Portfolio Management Services (PMS). While
verifying the transactions you noticed that the bank has not prepared separate record for
PMS transactions from the Bank’s own investments. As a statutory auditor what will be your
decision for verification of PMS transactions?
(a) It is not necessary to maintain separate records for PMS clients from Bank’s own investments,
so the auditor can verify the PMS transactions as part of investment verification for Bank’s
financial statements and submit the audit report accordingly.
(b) As per RBI guidelines PMS investments need to be audited separately by the external auditors
and the auditors are required to give a certificate separately for the same. So, in the above
case the auditor should not verify the PMS transactions till the Bank segregates the
transactions from its own investments.
(c) The auditor can give a qualified opinion in his audit report on the financial statements of the
Bank and report the matter in special purpose certificate.
(d) Auditor should verify that PMS funds are not utilised for lending, inter-bank deposits or
deposits to corporate bodies and bills re-discounting only. So, whether the PMS transactions
are recorded separately or not will not matter for the auditor.
9.1
Downloaded from castudyweb.com
Answers
***************
For Integrated Case Studies, Suggested Answers of Past Exams, Mock Test
Papers, Class Notes, Concept Videos, Revisionary Content and other
Resources, access Knowledge Portal/LMS at
www.altclasses.in/www.pankajgargclasses.com
9.2
Downloaded from castudyweb.com
2 NIC Pvt Ltd is a large private company engaged in the business of insurance for the last 9
years. The company has expanded its business considerably over the years and have set up
various divisions across India.
The accounting and the operational systems of the company are centralized wherein the
accounts of all the divisions, trial balances and their balance sheets are prepared by the
Head Office. AJ & Co, a firm of Chartered Accountants, are the statutory auditors of this
company and audit all the divisions and the head office. The auditors have completed the
audit of the financial statements of the company for the year ended 31 March 2019 and the
company’s financial statements are approved.
Before the annual general meeting of the company, the company received a notice from the
Insurance Regulatory and Development Authority of India (IRDAI) which has asked the
company to respond within 7 days as to why this company breached the requirement of
IRDAI guidelines by having a single auditor for all the divisions and head office.
10.1
Downloaded from castudyweb.com
3 BIC Ltd is an insurance company looking to expand their operations in the Northern India.
The company’s operations have been considerable in the Southern India and its head office
is also based at Chennai.
The company had strong processes and controls from its starting days and have appointed
consultants over the years to ensure their operative effectiveness at various points of time.
Shivam Ltd exercises significant influence over BIC Ltd and the financial statements of
Shivam Ltd are prepared as per Ind AS (Indian Accounting Standards) and audited by
Shubham & Associates.
Advik & Associates are the statutory auditors of BIC Ltd. For the financial year ended 31
March 2019, BIC Ltd also requested Advik & Associates to certify the Investment Risk
Management Systems and Processes of BIC Ltd as per discussions with Shivam Ltd.
Advik & Associates completed this task and also submitted the required certificate which
the management has submitted to the required authorities.
After submission, BIC Ltd received notice from the Insurance Regulatory and Development
Authority of India (IRDAI) that the company has not complied the provisions in respect of
submission of certificate.
The company discussed this matter with Shivam Ltd and would also like to have your views
on this.
(a) BIC Ltd, being an associate of a company and because of the fact that Ind AS is applicable on
Shivam Ltd, should have appointed another firm of Chartered Accountants along with Advik
& Associates for this certification work.
(b) BIC Ltd should have got this certification work done from their internal auditors as per the
required provisions of IRDAI.
(c) BIC Ltd should not have got this certification work done from their statutory auditors.
(d) The certification work should have been done by Shubham & Associates.
10.2
Downloaded from castudyweb.com
5 KJLIC Ltd is a life insurance company. The company is based at Nagpur and has offices across
Western India.
KJ & Associates are the statutory auditors of this company. At the time of audit of this
company, areas like cash and bank, receipts and payment and fixed assets where the
internal controls of the management are similar to the ones adopted by other companies are
dealt by the auditors as per the publications on the Internal Control Questionnaire,
published by the Institute of Chartered Accountants of India (ICAI). Since various
operational cycles are inter-linked, the internal controls operating within the systems of
such cycles are reviewed simultaneously by the auditors.
The company avails services of an actuary for computing various liabilities and provisions
which are certified by the actuary.
During the audit of the financial statements for the financial year ended 31 March 2019, the
auditors of the company would like to have a discussion with the actuary who has given
actuarial certificate on the basis of which certain liabilities have been recorded in the
financial statements, however, the actuary and the management of the company are not
10.3
Downloaded from castudyweb.com
Answers
***************
For Integrated Case Studies, Suggested Answers of Past Exams, Mock Test
Papers, Class Notes, Concept Videos, Revisionary Content and other
Resources, access Knowledge Portal/LMS at
www.altclasses.in/www.pankajgargclasses.com
10.4
Downloaded from castudyweb.com
2 CER Ltd is a non-banking financial company and has been operating for the last 10 years.
The company is duly registered as per the requirements of the Reserve Bank of India. The
company’s assets base has been very strong over the years due to its efficient management
function. The company is also planning to get listed for which required work is going on.
For the financial year ended 31 March 2019, the company has closed its books of accounts
and prepared the financial statements for the purpose of statutory audit in a timely manner.
The auditors of the company have started their fieldwork. It has been observed by the
auditors that the company’s various term loans which have been given to various parties
have become overdue in terms of instalment including interest for a period of 5 months. As
per the auditors these terms loans should be considered by the company for making
11.1
Downloaded from castudyweb.com
3 CRE Ltd is a non-banking financial company and registered with the Reserve Bank of India as
per the requirements of Section 45-IA of the Reserve Bank of India Act, 1934. The company
was established with a net owned fund of Rs. 2 crores. The company’s management had a
great focus on the internal controls and processes. To make them robust, in the initial years
of set up of the company, the management involved consultants who helped the
management in setting up those processes and controls. The company’s operations have
grown considerably over the years and their assets base is huge.
The management has in-house function which reviews these processes regularly and any
improvements required are actioned upon in no time.
With this kind of set up, the management was assured of the functioning of the NBFC as per
right principles, however, despite this during the year ended 31 March 2019, the
management came across instance of fraudulent encashment through forged instruments
and fictitious accounts involving an amount of Rs. 5 lakhs. Though the amount was not
significant but still the management discussed the same with the statutory auditors for their
knowledge.
The statutory auditors after discussion told the management that the management needs to
report this matter to RBI with which the management is not comfortable considering the
amount involved in this matter and the size of the company.
(a) Management need not report this matter considering the nature of fraud.
(b) Management need not report this matter considering the amount involved.
(c) Management should report this matter to RBI.
(d) Management should not report this to RBI, however, it will be their responsibility to report
this matter to SEBI.
11.2
Downloaded from castudyweb.com
5 Kshitij Ltd is a non-banking financial company other than Nidhi company and is covered
under “Master Direction - Non-Banking Financial Companies Auditor’s Report (Reserve
Bank) Directions, 2016”. The NBFC has been in existence for the last 11 years and its
operations are considerable in size having a net worth of Rs. 299 crores.
The NBFC has new statutory auditors for the financial year ended 31 March 2019. The audit
report (including CARO) of the NBFC was clean for the financial year ended 31 March 2018.
The company had a planning discussion with the auditors of the company for the financial
year ended 31 March 2019 who raised a point regarding the applicability of new set of
accounting standards, Indian Accounting Standards (Ind AS), on the NBFC for the financial
year ended 31 March 2019 and have asked the management to ensure that its financial
statements should be according to that. This comes as a big surprise to the management who
had assessed that Ind AS would not be applicable to this NBFC because of the fact that CARO
is applicable on this NBFC. There is a big disconnect on this matter between the auditor and
the management. Please help by resolving this matter.
(a) Both the management and statutory auditors are not correct because Ind AS is not applicable
to any NBFC covered under “Master Direction - Non-Banking Financial Companies Auditor’s
Report (Reserve Bank) Directions, 2016”.
(b) Management is correct because Ind AS is only applicable to NBFC which are also a Nidhi
company. In this case, CARO being applicable, Ind AS cannot apply to this NBFC.
11.3
Downloaded from castudyweb.com
Answers
***************
For Integrated Case Studies, Suggested Answers of Past Exams, Mock Test
Papers, Class Notes, Concept Videos, Revisionary Content and other
Resources, access Knowledge Portal/LMS at
www.altclasses.in/www.pankajgargclasses.com
11.4
Downloaded from castudyweb.com
2 Nisha Ltd is engaged in the business of trading of chemicals. Nisha Ltd is a small size
company but on the basis of turnover criteria, tax audit becomes applicable to the company.
The company has been filing its income tax returns on time in the previous years and
understands that the objective of the tax audit is to ensure that proper books of accounts are
maintained by the assesses. Considering the fact that company is also required to get its
accounts audited as per the requirements of the Companies Act 2013, it would like to avail
exemption from tax audit. If that is not possible then the company would go for tax audit
report from an accountant who is cost effective. In this context, please suggest which of the
following should be correct.
(a) Company can avail tax audit exemption in the given situation.
(b) Company cannot avail tax audit exemption but it may be exempt from submitting the tax
audit report from a Chartered Accountant.
(c) Company can avail tax audit exemption, however, the statutory auditor in that case would be
required to cover the same in his statutory audit report.
(d) Company cannot avail tax audit exemption and would need to get this done from a Chartered
Accountant.
12.1
Downloaded from castudyweb.com
4 ABC & Co LLP is a firm of Chartered Accountants having 5 partners. The firm specializes in
taxation work and also has large no of statutory audits and tax audits of corporate entities
and non-corporate entities. During the financial year ended 31 March 2018, the firm has
received various requests for new tax audits. On the basis of limit assigned in respect of tax
audit assignments by a Chartered Accountant/ firm of Chartered Accountants, please
suggest which of the following would be correct.
(a) Firm can accept 300 tax audits assignments (in total) to be signed by its 5 partners.
(b) Firm can accept 300 tax audits of corporate entities and 300 tax audits of non-corporate
entities to be signed by its 5 partners.
(c) Firm can accept 300 tax audits of corporate entities, 300 tax audits of non-corporate entities
and more by outsourcing the same to Chartered Accountants outside the firm, however, all
these will be signed by its 5 partners.
(d) Since the firm specializes in taxation work, it cannot accept 300 tax audit assignments.
5 AOP Pvt Ltd is currently engaged in closing its books of accounts for the financial year ended
31 March 2019. The company has always been a compliance-savvy and has also engaged
consultants for the same. The business of the company has been stable over the years and
profitability has been good over the last 3 years.
The company got registered for GST on time. Since registration the company has been filing
statement of returns GSTR 3B. However, Annual Return in GSTR 9 has not been filed by the
company.
Proper Officer issued a notice for failure to file Annual Return within 15 days. Even then, no
Annual Return was filed by the company within the time permitted. Please advise
12.2
Downloaded from castudyweb.com
6 Rajeev Ltd is a listed company having business of production of motion pictures. For the
year ended 31 March 2018, the company wanted to appoint GST auditor. For the purpose,
somebody who is familiar with the business of the company/industry was to be preferred
for appointment i.e. who would have worked with the company in the past to avoid efforts/
duplication in terms of providing the information to get the GST audit completed. The
company had following options for the same. Please advise.
(a) Internal auditors can be appointed for this work.
(b) Both statutory and internal auditors can be jointly appointed for this work.
(c) Internal auditors along with the tax consultants of the company can be appointed for this
work.
(d) Statutory auditors can be appointed for this work.
Answers
***************
For Integrated Case Studies, Suggested Answers of Past Exams, Mock Test
Papers, Class Notes, Concept Videos, Revisionary Content and other
Resources, access Knowledge Portal/LMS at
www.altclasses.in/www.pankajgargclasses.com
12.3
Downloaded from castudyweb.com
2 CGN Ltd is a large company engaged in the business of oil exploration in India. The Tamil
Nadu Government and the Central Government hold 37% and 20% respectively of the paid
up share capital of this company.
The C&AG appointed the statutory auditors of this company as per requirements of the
Companies Act 2013. The company had a concern regarding this appointment because
company wanted to appoint another auditors as per their assessment, however, considering
the legal hassles which would have got involved, the company decided to go ahead with this.
The audit of the financial statement for the year ended 31 March 2019 got completed by the
auditors appointed by the C&AG. Subsequent to this, the C&AG also issued an order to
conduct test audit of the accounts of the company which was objected by the management of
the company.
13.1
Downloaded from castudyweb.com
3 NOP Ltd is a joint venture of Central Government and a private company and is engaged in
the business of distribution of electricity in Chennai. The Central Government holds 51%
shares of the company.
The company is acknowledged for its consumer-friendly practices. Initially it was
completely owned by the Government and was running into significant losses but after the
joint venture, the aggregate technical and commercial losses of the company showed a
record decline.
The operations of the company have improved significantly as claimed by the management
of the company.
The C&AG wants to conduct the performance audit of one of the departments of the company
through a subordinate office of Indian Audit and Accounts Department.
For this purpose, the audit programme has also been finalized and the Accountant General
has intimated the company that the audit would start within a day’s time. The company is
concerned because the programme which has been received from the Accountant General is
quite detailed and would involve significant time. Further the management of the company
is quite surprised as to why this audit should be conducted as this is not a company subject
to such types of audits as per law.
The management of the company would like to have your inputs in respect of this matter.
Please guide.
(a) The notice for such type of audit should give reasonable time to the management to prepare
themselves. Further it should not be a detailed audit requiring significant time of the
company.
(b) The C&AG may conduct such type of audits in respect of NOP Ltd which would get covered in
this criteria, however, the notice for conducting such type of audit should give reasonable
time to the management to prepare themselves.
13.2
Downloaded from castudyweb.com
4 AJ Petroleum & Refining Ltd is a Maharatna Central Public Sector Undertaking (PSU) in India
having its registered office in Uttranchal.
It is engaged in the business of oil refining, pipeline transportation & marketing, exploration
& production of crude oil & gas, petrochemicals, gas marketing and other downstream
operations.
The PSU has global aspirations for which its management is working on various plans/
programmes so that the same can be achieved in future. It is also planning to pursue diverse
business interests by setting up of various joint ventures with reputed business partners
from India and abroad to explore global opportunities.
Considering these objectives and other factors, the C&AG directed the performance audit in
respect of its certain activities/ functions which has been in progress. Before starting the
audit, the detailed scope and composition of audit team was shared with the management of
the company and tentative timelines were also given with which the management was fine.
However, during the course of the audit the audit team changed its audit programme to
achieve the desired objectives which was approved by the competent authority, however,
the management was not happy with those changes.
The management wants the audit team to conclude the audit with the same scope as this is a
special type of audit wherein such flexibility cannot be accepted as that would defeat the
purpose of the law. However, the audit team has a different view. Please guide.
(a) Changes in audit programme in such type of audits are not acceptable as specified by the
Companies Audit and Auditors Rules 2014.
(b) Changes in audit programme in such type of audits are not acceptable as specified by the
Companies Audit and Auditors Rules 2014 and the Ministry of Law.
(c) Changes in audit programme in such type of audits can be accepted provided those are
discussed with the management and approved by the Competent Authority.
(d) The C&AG should get involved in this matter after taking permission from the Central
Government and would require to change the audit team if the scope requires any changes as
the same should have been properly assessed by the audit team before commencing the
audit.
13.3
Downloaded from castudyweb.com
Answers
***************
For Integrated Case Studies, Suggested Answers of Past Exams, Mock Test
Papers, Class Notes, Concept Videos, Revisionary Content and other
Resources, access Knowledge Portal/LMS at
www.altclasses.in/www.pankajgargclasses.com
13.4
Downloaded from castudyweb.com
14 LIABILITIES OF AUDITOR
1 OPE Ltd issued a prospectus in respect of an IPO which had the auditor’s report on the
financial statements for the year ended 31 March 2019. The issue was fully subscribed.
During this year, there was an abnormal rise in the profits of the company for which it was
found later on that it was because of manipulated sales in which there was participation of
Whole-time director and other top officials of the company. On discovery of this fact, the
company offered to refund all moneys to the subscribers of the shares and sued the auditors
for the damages alleging that the auditors failed to examine and ascertain any satisfactory
explanation for steep increase in the rate of profits and related accounts.
The company emphasized that the auditor should have proceeded with suspicion and should
not have followed selected verification. The auditors were able to prove that they found
internal controls to be satisfactory and did not find any circumstance to arouse suspicion.
The company was not able to prove that auditors were negligent in performance of their
duties. Please suggest your views on this.
(a) The stand of the company was correct in this case. Considering the nature of the work, the
Auditors should have proceeded with suspicion and should not have followed selected
verification.
(b) The approach of the auditors look reasonable in this case. The auditors found internal
controls to be satisfactory and also did not find any circumstance to arouse suspicion and
hence they performed their procedures on the basis of selected verification.
(c) In the given case, the auditors should have involved various experts along with them to help
them on their audit procedures. Prospectus is one area wherein management involves
various experts and hence the auditors should also have done that. In the given case, by not
involving the experts the auditors did not perform their job in a professional manner. If they
had involved experts like forensic experts etc, the manipulation could have been detected.
Hence the auditors should be held liable.
(d) In case of such type of engagements, the focus is always on the management controls. If the
controls are found to be effective then an auditor can never be held liable in respect of any
deficiency or misstatement or fraud.
2 Kshitij and a group of persons subscribed to the shares of JNN Ltd. JNN Ltd had issued a
prospectus for issuance of shares against which these persons had subscribed the shares.
It was later on found that some information as included in the prospectus was misleading.
These persons filed a case against the company covering all the parties who were
responsible for the prospectus on the ground that the information contained in the
prospectus was misleading and they suffered losses by relying on that information.
The company consulted this matter with its legal consultants in respect of the course of
action to be taken and also consulted that if the outcome of the case goes against the
company then which all parties may be held liable and what could be the other
consequences.
14.1
Downloaded from castudyweb.com
3 JK Ltd is a company engaged in the business of software development. It is one of the largest
companies in this sector with a turnover of INR 25,000 crores. The operations of the
company are increasing constantly, however, the focus of the management is more on cost
cutting in the coming years to improve its profitability.
In respect of the financial statements of the company which are used by various
stakeholders, some deficiencies were observed in respect of assets reported therein due to
which those stakeholders suffered damages. As a result, those stakeholders went for a civil
action against the company including all the parties who had the responsibility in respect of
those financial statements.
The statutory auditors of the company were also roped in. The statutory auditors went
against this civil action and were able to prove that there was no professional negligence on
their part.
It was decided that the loss was occasioned through the negligence of directors and the fault
of the auditor in failing to verify the asset was considered to be only technical.
On the basis of above mentioned facts, what should be the correct option out of the
following?
(a) A penalty should be levied on the auditors but that should not be equivalent to the damages
suffered by the stakeholders. The damages would be required to be made good by the
directors of the company.
14.2
Downloaded from castudyweb.com
4 KKR Ltd is a medium-sized company engaged in the business of e-commerce. The company’s
operations have remained stable over the years and its profitability has been going down.
The company also ventured into different markets over the last few years but that has not
helped much in terms of growth of business or increasing the profitability. The company’s
immediate plan is to expand its operations with focus on increasing the profitability.
The company was looking for funds to achieve this objective and issued a prospectus to the
public to subscribe to its shares.
The financial statements of the company for the year ended 31 March 2018 included in the
prospectus showed a very different picture of the company particularly in respect of its
profits.
It was later on found that some of the information contained in the prospectus was
misstated i.e. it was untrue and misleading to attract the public to subscribe the shares of
the company.
Legal action was taken by the stakeholders against the company including its auditors and
the company’s management/ directors were confident that they would not be required to
face any action considering the fact that the financial statements were duly audited by a
reputed firm of Chartered Accountants. If at all any problem arises, it would be the
responsibility of the auditors.
Please advise whether anyone can be held liable in this matter or not. If yes, what action can
be taken against him/them? If no, what should be the corrective action?
(a) The understanding of the directors is correct and the auditors should be held liable under
section 447 of the Companies Act.
(b) The understanding of the directors is wrong. They would be held liable under section 447 of
the Companies Act and not the auditors because responsibility for the prospectus lies with
the management.
(c) This may lead to criminal liability wherein every person who authorises the issue of such
prospectus shall be liable under section 447 of the Companies Act.
(d) This may lead to civil liability wherein every person who authorises the issue of such
prospectus shall be liable under section 447 of the Companies Act.
14.3
Downloaded from castudyweb.com
Answers
***************
For Integrated Case Studies, Suggested Answers of Past Exams, Mock Test
Papers, Class Notes, Concept Videos, Revisionary Content and other
Resources, access Knowledge Portal/LMS at
www.altclasses.in/www.pankajgargclasses.com
14.4
Downloaded from castudyweb.com
15.1
Downloaded from castudyweb.com
Answers
1 (d) 2 (d)
***************
For Integrated Case Studies, Suggested Answers of Past Exams, Mock Test
Papers, Class Notes, Concept Videos, Revisionary Content and other
Resources, access Knowledge Portal/LMS at
www.altclasses.in/www.pankajgargclasses.com
15.2
Downloaded from castudyweb.com
16.1
Downloaded from castudyweb.com
16.2
Downloaded from castudyweb.com
16.3
Downloaded from castudyweb.com
Answers
***************
For Integrated Case Studies, Suggested Answers of Past Exams, Mock Test
Papers, Class Notes, Concept Videos, Revisionary Content and other
Resources, access Knowledge Portal/LMS at
www.altclasses.in/www.pankajgargclasses.com
16.4
Downloaded from castudyweb.com
2 What types of engagements are not included in the scope of the quality assurance review
program?
(a) Financial statement audit - listed entities (minimum requirement)
(b) Financial statement audit - audit of other than listed entities
(c) Other services (e.g., review, compilation)
(d) Insolvency
Answers
1 (a) 2 (d)
***************
For Integrated Case Studies, Suggested Answers of Past Exams, Mock Test
Papers, Class Notes, Concept Videos, Revisionary Content and other
Resources, access Knowledge Portal/LMS at
www.altclasses.in/www.pankajgargclasses.com
17.1
Downloaded from castudyweb.com
18 PROFESSIONAL ETHICS
1 AJ & Co LLP is a firm of Chartered Accountants. The firm has 10 Partners. The firm has a
good portfolio of clients for statutory audits, but the same clients had some other firms as
their tax auditors. In the current year (FY 2019-20), many existing clients for whom AJ & Co
LLP happens to be the statutory auditor have requested the firm to carry out their tax audits
as well. The firm is expecting the no of tax audits to increase significantly this year. One of
the partners of the firm has also raised a point that the firm can accepts tax audits upto a
maximum limit. However, other partners are of the strong view that limits on audits is
applicable in case of statutory audits and not for tax audits. This needs to be decided as soon
as possible so that the appointment formalities can also be completed.
You are requested to advise the firm in this matter.
(a) There is no limit on no of tax audits in case of LLP.
(b) All the partners of the firm can collectively sign 450 tax audit reports.
(c) All the partners of the firm can collectively sign 600 tax audit reports.
(d) All the partners of the firm can collectively sign 450 tax audit reports. However, one partner
can individually sign maximum 60 tax audit reports.
2 CA. D, a chartered accountant in practice availed of a loan against his personal investments
from a bank. He issued 2 cheques towards repayment of the said loan as per the instalments
due. However, both the cheques were returned back by the bank with the remarks
"Insufficient funds". As per Chartered Accountants Act, 1949, under which clause CA D is
liable for misconduct .
(a) Clause (6) of Part I of the First Schedule to the Chartered Accountants Act, 1949
(b) Clause (4) of Part I of the Second Schedule to the Chartered Accountants Act, 1949
(c) Clause (12) of Part I of the First Schedule to the Chartered Accountants Act, 1949
(d) Clause (2) of Part IV of the First Schedule to the Chartered Accountants Act, 1949
3 CA. Intelligent, a Chartered Accountant in practice, provides part-time tutorship under the
coaching organization of the Institute. On 30th June, 2019, he was awarded ‘Best Faculty of
the year’ as gratitude from the Institute. Later on, CA. Intelligent posted his framed
photograph on his website wherein he was receiving the said award from the Institute. As
per Chartered Accountants Act, 1949, under which clause Intelligent is liable for misconduct
(a) Clause (6) of Part I of the First Schedule to the Chartered Accountants Act, 1949
(b) Clause (9) of Part I of the Second Schedule to the Chartered Accountants Act, 1949
(c) Clause (7) of Part I of the First Schedule to the Chartered Accountants Act, 1949
(d) Clause (8) of Part I of the Second Schedule to the Chartered Accountants Act, 1949
18.1
Downloaded from castudyweb.com
Answers
1 (c) 2 (d) 3 (a) 4 (a) 5 (a)
***************
For Integrated Case Studies, Suggested Answers of Past Exams, Mock Test
Papers, Class Notes, Concept Videos, Revisionary Content and other
Resources, access Knowledge Portal/LMS at
www.altclasses.in/www.pankajgargclasses.com
18.2