CA Final with Ankush Chirimar Classes ♥️

MCQs for SA 230, 240 & 265-

You are the audit senior in charge of the audit of Swandive Co, and have been informed by your
audit manager that during the current year a fraud occurred at the client. A payroll clerk sets up
fictitious employees and the wages were paid into the clerk’s own bank account. This clerk has
subsequently left the company, but the audit manager is concerned that additional frauds have
taken place in the wages department. Which of the following audit procedures would be
undertaken during the audit of wages as a result of the manager’s assessment of the increased
risk of fraud?
1. Discuss with the payroll manager the nature of the payroll fraud, how it occurred, and the
financial impact of amounts incorrectly paid into the payroll clerk’s bank account.
2. Review the supporting documentation to confirm the total of the fraudulent payments
made and assess the materiality of this misstatement.
3. Review and test the internal controls surrounding setting up of and payments to new
joiners to assess whether further frauds may have occurred.
4. Review the legal action taken by the management against the payroll clerk who was
involved in the fraud and see whether he is punished for his actions.

a) Audit procedures 1,2,3
b) Audit procedures 2,3,4
c) Audit procedures 1,3,4
d) Audit procedures 1,2,4

Daily Targets for CA Final Audit✌️

Day 8 (4th Oct’26) - SA 250 & NOCLAR, 505, 540 (A Category)

Hindi Revision Videos -

SA 250 & NOCLAR -
https://youtu.be/maGOv6X6ME4?si=ylUOhfhTtHdQ5l8S

SA 505 -
https://youtu.be/EO42KESJgAM?si=6sFHg26I1O_eUJN4

SA 540 -
https://youtu.be/kbn8C27aRWo?si=Lvuoe6UWuexJdRY3

English Revision Videos -

SA 250 & NOCLAR -
https://youtu.be/MmLS2Nhjf38?si=OfNZF8cq8trAus0h

SA 505 -
https://youtu.be/cdYplv1GKWM?si=J2UQc8F-7I4UxkLP

SA 540 -
https://youtu.be/8l4TYPrETu0?si=R7q4qrX8TE6Fiep0

Koi bahaana nahi chalega 😒

React with a ❤️ to Promise yourself (khud se wadaa karo🤞)!

CA Student at Age of 40 Years, Truly an inspiration ❤️

https://www.instagram.com/reel/DeB6CW1MoIr/?stkn=Nm15OXc0ZmxzaHIy

7 years of dreaming.

Thousands of hours of studying.

Hundreds of sacrifices.

Dozens of difficult days.

Maybe a few failures.

But just ONE thing remains-
DON’T GIVE UP BEFORE THE RESULT.

Your CA journey deserves one more fight. ❤️

Daily Targets for CA Final Audit✌️

Day 6(3rd Oct’26) - SA 230, 240 & 265

Revision Hindi Video -
SA 230-
https://youtu.be/NUiEih-7i0U?si=PGJ-NdtitR4ZwSWx

SA 240-
https://youtu.be/BzKenVHGygU?si=vN7sXKfMwh9H0FKt

SA 265-
https://youtu.be/ousHZRV9QzI?si=_2hAEcKzH3aaWCoK

English Revision Lecture-

SA 230-
https://youtu.be/blqobUtuXNs?si=51_8VI7rCMPUfAGo

SA 240-
https://youtu.be/TdJwBHvtLX8?si=Xz9aL_sF1fT4BLYT

SA 265-
https://youtu.be/_u-jZUAr5Rg?si=a1YYIFqjoiPylaYN


Koi bahaana nahi chalega 😒

React with a ❤️ to Promise yourself (khud se wadaa karo🤞)!

CA Isha has been appointed as statutory auditor for the financial year 2024-25 by Air Ltd., which is
on the verge of becoming sick unit and has accumulated losses but the said losses are not equal to
or exceeding its entire net worth as per last audited accounts for the year 2023-24. The audited
accounts for the year 2021-22, 2022-23 were showing liability for payment of undisputed audit
fees payable to predecessor auditors but were settled completely during last F.Y. 2023-24.
In terms of Council General Guidelines, 2008, Chapter VII, read with relevant proviso of the said
Guideline, which of the following statement is correct in respect of the aforesaid scenario?

a) CA Isha shall be deemed to be guilty of professional misconduct as she has accepted the
appointment as auditor of Air Ltd. which had not paid undisputed audit fee for the year 2021-
22 and 2022-23 of predecessor auditor, though settled in F.Y. 2023-24.

b) CA Isha would not be held guilty of professional misconduct as she has accepted the
appointment as auditor of Air Ltd. which is on the verge of becoming sick unit but whose
accumulated losses are not equal to or exceeding its entire net worth as per last audited
accounts for the year 2023-2024.

c) CA Isha would not be held guilty of professional misconduct as she has accepted the
appointment as auditor of Air Ltd., which is not a sick unit, whose accumulated losses are not
equal to or exceeding its entire net worth as per last audited accounts for the year 2023-24
and there are no unpaid undisputed audit fees of predecessor auditors.

d) CA Isha shall be deemed to be guilty of professional misconduct as she has accepted the
appointment as auditor of Air Ltd. which is on the verge of becoming sick unit and it had not
paid undisputed audit fee of predecessor auditor though settled in subsequent year.

So guys!!

Here’s the MCQ for the day-

Sista and Chartered Accountants were already appointed for stock audit by the audit committee
for the five branches, so whether Sista and Chartered Accountants are authorised to accept the
appointment as statutory auditors for the same branches?.

a)Sista and Chartered Accountants cannot accept the appointment as it was not offered by the
audit committee and Bank’s management is not authorized to appoint the auditors.

B) Sista and Chartered Accountants can accept the appointment as they were already appointed
for the stock audit of those branches by the audit committee.

C) Sista and Chartered Accountants can accept the appointment as they have been appointed
statutory auditors for the same five branches for which they were conducting stock audit.

D)Sista and Chartered Accountants cannot accept the appointment as the audit firms should not
undertake statutory audit assignment while they are associated with internal assignments in
the Bank during the same year.