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Match the items in Column A with those in Column B.(Auditing-CMA Exam)
Match the items of column A with the most suitable items of column B. Match only one item of column A with one item of column B. Write your answer on the answer script. Follow the example given below in providing your answer.
Example:
Column A |
Column B |
1.ICMAB |
a) Professional accountancy body (b) University |
Answer: 1 (a)
(CMA-January-2024 Exam):
Column A |
Column B |
1)Judgements about materiality are based on |
(a) preventing errors occurring in financial information or detecting and correcting them. |
2)Auditors issue adverse audit opinion when |
(b) requires special audit consideration due to its high probability and high magnitude. |
3) Internal controls are designed for |
(c) may create a self-interest threat. |
4) A significant risk is a risk which |
(d) surrounding circumstances, including the size and nature of the misstatement. |
5)A financial interest in an assurance client |
(e) leads to incorrect procedures performed by auditors. |
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(f) fraud detected by the auditor. |
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g) misstatements in the financial statements are pervasive. |
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(h) individual decision. |
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Answer: 1.(d) 2.(g) 3.(a) 4.(b) 5.(c)
(CMA-September-2023 Exam):
Column A |
Column B |
1.stewardship |
(a)means that a company’s directors safeguard the company’s assets and manage them on behalf of shareholders |
2.Familiarity threat |
(b)means the auditor is too personally close to or familiar with employees, officers, or directors of the client company |
3.Audit documentation |
c)Means to collect required sufficient and appropriate audit evidence (as per BSA 230) |
4.Error |
d)an unintentional misstatement in financial statements, including the omission of an amount or a disclosure |
5.Directors’ responsibility |
(e)disclosing with reasonable accuracy at any time the financial position of the company |
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(f)examine individual transactions so that the auditor may certify as to their validity |
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(g)determine whether the client’s financial reports are fairly stated |
Answer: 1.(d) 2.(b) 3.(c) 4.(d) 5.(a)
(CMA-May-2023 Exam):
Column A |
Column B |
1) Verification of assets |
(a) Arises both from compliance and substantive procedures.
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2) Material weakness |
(b) Providing the truth and confirmation of physical existence of an asset, transaction authenticity and procession of the client and record in the books of accounts with documentation.
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3) Sampling risk |
(c) is the inherent risk of the company in its operation.
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4) Contents of audit note books |
(d) is weakness in Internal control that could have a material effect on financial statement. |
5) Cash flow forecast |
(e) included all technical terms used in business by client and confirmation |
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(f) These estimates are often made when there are uncertainties about the outcome of events and involve the use of judgment.
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(g) Which is prepared on the basis of assumptions as to future events which management expects to take place and actions management expects to take as of the date the information is prepared. |
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(h) Management consider as best–estimated assumptions. |
Answer: 1.(b) 2.(d) 3.(a) 4.(e) 5.(g)
(CMA-September-2022 Exam):
Column A |
Column B |
1) Corresponding figure |
(a) the audit opinion should be qualified |
2) Comparative Information |
(b) who at the request of the group engagement team, performs work on financial information related to a component for the group audit |
3) In case of material misstatement and effect is pervasive |
(c) discuss the reason of withdrawal with the appropriate level of management and those charged with governance |
4) Component auditor |
(d) is engaged and performs work at the request of component management |
5) If the auditors need to withdraw from engagement |
(e) comparative information where amounts and other disclosures for the prior period are included as an integral part of the current period financial statements |
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(f) the audit opinion should be adverse |
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(g) the amounts and disclosures included in the financial statements in respect of one or more prior periods in accordance with the applicable financial reporting framework. |
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Answer: 1.(e) 2.(g) 3.(f) 4.(b) 5.(c)