Here are some question and answer for CA firm admission test . you can get the idea from here ::::::::::
👍1. WHAT IS STATUTORY AUDIT?
answer :Statutory audit is done by chartered Accountants, to verify the financial statement’s fairness and it is done annually. It ensures that, to the best knowledge of the auditors, financial statements are free from any misrepresentations and frauds.
👍2. WHAT IS INTERNAL AUDIT
ANSWER An inspection and verification of the financial records of a company or firm by a member of its own staff to determine the accuracy and acceptability of its accounting practices.
👍 3. WHAT IS EXTERNAL AUDIT ?
ANSWER:a periodic examination of the books of account and records of an entity conducted by an independent third party (an auditor) to ensure that they have been properly maintained, are accurate and comply with established concepts, principles, and accounting standards, and give a true and fair view of the financial state of the entity.
👍4. Explain The Difference Between Internal Audit And External Audit?
ANSWER : The internal audit is conducted to help the management. The weakness of the management is disclosed. The external audit is conducted to help the shareholder. The rights of owners are protected. The appointment of internal audit is made by the management. The appointment in external audit is made by the shareholders. Internal audit is the part of internal control.
External audit is the not the part of internal control.The internal audit can suggest improvement in internal check system. The external audit can not suggest improvement in internal check system. The internal audit can perform his duties under the terms of appointment. The management can limit the scope of work at any time. The external auditor can perform his work to terms of appointment and other prescribed law. The scope is very wide. Internal audit is an employee of the company. He is not an independent person. External auditor is not an employee of the company.
👍 Q: What do you mean by vouching?
Answer : Vouching is the process of checking the authentication of the voucher maintain by the management with the respective supporting document
👍 Q : Definition of audit ?
Answer : An examination and verification of a company’s financial and accounting records and supporting documents by a professional, such as a Certified Public Accountant.
👍 Q : What are Objectives Of Internal Audit?
Answer : The purpose of internal audit is to keep proper control over business activities. When there is proper control there is maximum efficiency. The internal auditor determines the degrees of control over work. The purpose of internal audit is to evaluate the accounting system. It is concerned with checking proper authority for transactions like purchase, retirement and disposal of fixed assets. The vouchers can be compared with entries in order to determine that figures are facts.
The purpose of internal audit is to help the management. Internal auditor can point out the weakness. The internal audit can be used as a tool to correct the situation. The management functions can be performed properly. The purpose of internal audit is to review the working of business. The working of current tear can be reviewed in detail just to note the successful area of working. There is a need to locate the weak points. The corrective measures can be taken for proper working.
👍 Q: Explain the difference between internal audit and statutory audit?
Answer : An internal audit is one which is conducted by the internal auditors of the company. It is not mandatory for the company and the company just conducts it to keep a check on the operations of the company. On the other hand statutory audit is very important because it is by the external auditors and it is mandatory for all kinds of companies. Statutory audit is usually conducted for various purposes like tax regulatory requires it for taxation purposes.
👍 Q : What is an audit process?
👍1. WHAT IS STATUTORY AUDIT?
answer :Statutory audit is done by chartered Accountants, to verify the financial statement’s fairness and it is done annually. It ensures that, to the best knowledge of the auditors, financial statements are free from any misrepresentations and frauds.
👍2. WHAT IS INTERNAL AUDIT
ANSWER An inspection and verification of the financial records of a company or firm by a member of its own staff to determine the accuracy and acceptability of its accounting practices.
👍 3. WHAT IS EXTERNAL AUDIT ?
ANSWER:a periodic examination of the books of account and records of an entity conducted by an independent third party (an auditor) to ensure that they have been properly maintained, are accurate and comply with established concepts, principles, and accounting standards, and give a true and fair view of the financial state of the entity.
👍4. Explain The Difference Between Internal Audit And External Audit?
ANSWER : The internal audit is conducted to help the management. The weakness of the management is disclosed. The external audit is conducted to help the shareholder. The rights of owners are protected. The appointment of internal audit is made by the management. The appointment in external audit is made by the shareholders. Internal audit is the part of internal control.
External audit is the not the part of internal control.The internal audit can suggest improvement in internal check system. The external audit can not suggest improvement in internal check system. The internal audit can perform his duties under the terms of appointment. The management can limit the scope of work at any time. The external auditor can perform his work to terms of appointment and other prescribed law. The scope is very wide. Internal audit is an employee of the company. He is not an independent person. External auditor is not an employee of the company.
👍 Q: What do you mean by vouching?
Answer : Vouching is the process of checking the authentication of the voucher maintain by the management with the respective supporting document
👍 Q : Definition of audit ?
Answer : An examination and verification of a company’s financial and accounting records and supporting documents by a professional, such as a Certified Public Accountant.
👍 Q : What are Objectives Of Internal Audit?
Answer : The purpose of internal audit is to keep proper control over business activities. When there is proper control there is maximum efficiency. The internal auditor determines the degrees of control over work. The purpose of internal audit is to evaluate the accounting system. It is concerned with checking proper authority for transactions like purchase, retirement and disposal of fixed assets. The vouchers can be compared with entries in order to determine that figures are facts.
The purpose of internal audit is to help the management. Internal auditor can point out the weakness. The internal audit can be used as a tool to correct the situation. The management functions can be performed properly. The purpose of internal audit is to review the working of business. The working of current tear can be reviewed in detail just to note the successful area of working. There is a need to locate the weak points. The corrective measures can be taken for proper working.
👍 Q: Explain the difference between internal audit and statutory audit?
Answer : An internal audit is one which is conducted by the internal auditors of the company. It is not mandatory for the company and the company just conducts it to keep a check on the operations of the company. On the other hand statutory audit is very important because it is by the external auditors and it is mandatory for all kinds of companies. Statutory audit is usually conducted for various purposes like tax regulatory requires it for taxation purposes.
👍 Q : What is an audit process?