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Created on March 25, 2026 By

CA Sonal Saboo

CMA Inter

Inter CA&A PN-10 Quiz 5

This quiz is based on the CMA Corporate Accounting and Auditing paper.
Each question is multiple-choice with 4 options, and only 1 option is correct.
Attempt the quiz to test your understanding of CMA CAA concepts.

1 / 25

Category: Corporate Accounting and Auditing PN-10

1. The main role of is the following: A. Recommending Auditing Standards, B. Monitoring and Enforcing Compliance with Auditing Standards and C. Power to Investigate

a. NFRA

b. NACAS

c. IFC

d. None of these

2 / 25

Category: Corporate Accounting and Auditing PN-10

2. Benefits of Audit Sampling are .

a. It reduces the workload of the auditor

b. It saves time and cost

c. It gives dependable result as it is based on statistical sampling methods

d. All of these

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Category: Corporate Accounting and Auditing PN-10

3. refers to the possibility of material misstatement due to complex transactions or even due to organised fraud.

a. Control Risk

b. Inherent Risk

c. Detection Risk

d. None of these

4 / 25

Category: Corporate Accounting and Auditing PN-10

4. is a detailed plan of the auditing work to be performed, specifying the procedures to be followed in verification of each item and the financial statements and the estimated time required.

a. Audit programme

b. Flow-chart

c. Audit Documentation

d. Audit Working Papers

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Category: Corporate Accounting and Auditing PN-10

5. Audit Documentation is related to

a. SA 300

b. SA 230

c. SA 250

d. SA 310

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Category: Corporate Accounting and Auditing PN-10

6. involves examination of legalities by blending the techniques of propriety audit, regularity, investigative and financial audits.

a. Forensic audit

b. Tax audit

c. Cost audit

d. Human Resource Audit

7 / 25

Category: Corporate Accounting and Auditing PN-10

7. Which of the following is/are advantage/s of audit?

a. Audit is a tool, which different stakeholders can use to protect their interests in the enterprise

b. Audit is not only a corrective measure but has a deterrent effect. It serves as a moral check on the employees from committing defalcations or embezzlements

c. The employees of the organisation remain alert and vigilant as regards the updating of books of accounts and other records

d. All of these

8 / 25

Category: Corporate Accounting and Auditing PN-10

8. Cut-off testing is performed during audit of sales to address the fofllowing assertion .

a. Occurrence

b. Measurement

c. Cut-off

d. All of these

9 / 25

Category: Corporate Accounting and Auditing PN-10

9. Internal check is meant for .

a. Prevention of frauds

b. Detection of frauds

c. Helping audit is depth

d. Detection of errors

10 / 25

Category: Corporate Accounting and Auditing PN-10

10. The most important objective of internal audit is .

a. Early detection of errors and fraud

b. Facilitating final audit

c. Early finalization of annual account

d. Ensuring systematic accounting

11 / 25

Category: Corporate Accounting and Auditing PN-10

11. An internal control includes .

a. Internal Audit

b. Internal Check

c. Both 1 and 2

d. None of the above

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Category: Corporate Accounting and Auditing PN-10

12. The work of one clerk is automatically check by another clerk is called .

a. Internal control

b. Internal check

c. Internal audit

d. None of the above

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Category: Corporate Accounting and Auditing PN-10

13. Internal auditor is appointed by .

a. The Management

b. The Shareholders

c. The Government

d. The Statutory Body

14 / 25

Category: Corporate Accounting and Auditing PN-10

14. A flow chart, made by the auditor, of an entity’s internal control system is a graphic representation that depicts the auditor’s .

a. Understanding of the system

b. Understanding of fraud risk factors

c. Documentation of assessment of control risk

d. Both 1 and 3

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Category: Corporate Accounting and Auditing PN-10

15. Test Checking reduces the .

a. Power of an auditor

b. Expenses of auditor

c. Work of an auditor

d. Liability of an auditor

16 / 25

Category: Corporate Accounting and Auditing PN-10

16. Audit in depth synonymous for

a. Examination in Depth

b. Completed audit

c. Final audit

d. Internal audit

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Category: Corporate Accounting and Auditing PN-10

17. Verification of the value of assets, liabilities, and the balance of reserves, provision and the amount of profit earned or loss suffered by an entity is called as .

a. Continuous audit

b. Balance sheet audit

c. Interim audit

d. Partial audit

18 / 25

Category: Corporate Accounting and Auditing PN-10

18. Government is interested in the Financial Statements for .

a. For day-to-day decision-making

b. For Collection of Taxes

c. For research purpose

d. None of the above

19 / 25

Category: Corporate Accounting and Auditing PN-10

19. Management is interested in the Financial Statements for .

a. For day-to-day decision-making

b. For Collection of Taxes

c. For research purpose

d. None of the above

20 / 25

Category: Corporate Accounting and Auditing PN-10

20. The word “Auditing” has been derived from Latin word “audiere” which means .

a. To Hear

b. To verify

c. To Examine

d. To Identify

21 / 25

Category: Corporate Accounting and Auditing PN-10

21. Which of the following is not an essential features of auditing?

a. It involves evaluation & verification of the relevance, reliability and adequacy of evidence in support of verifiable information such as vouchers, documents, explanations.

b. It is analytical, critical and investigative review of systems of Accounting & Internal Controls.

c. The information audited are non- financial in nature.

d. There should be standards or criteria for evaluation of the information in a systematic & scientific manner.

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Category: Corporate Accounting and Auditing PN-10

22. How many types of Employee Benefits are there as per Ind AS 19?

a. 1

b. 2

c. 3

d. 4

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Category: Corporate Accounting and Auditing PN-10

23. Events occurring after the Reporting Period are those events that occure between ---

a. reporting date and issue date

b. reporting date and approval date

c. finalisation date and approval date

d. finalisation date and issue date

24 / 25

Category: Corporate Accounting and Auditing PN-10

24. Which of the following is included in cost of inventory as per IND AS 2?

a. Duties and Taxes subsequently recoverable from taxing authorities

b. Freight inwards

c. Rebates

d. Duty drawbacks

25 / 25

Category: Corporate Accounting and Auditing PN-10

25. is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date.

a. Fair Value

b. Value in use

c. Current Cost

d. Net Realisable Value

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Inter PN-10 CAA Quiz 5

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