Performance Auditing Guidelines
1. Which among the following is not to be
questioned in performance audit?
A. the objectives of the policy being met by means
employed, outputs provided and impacts observed
B. the means employed and the results achieved
consistent with the objectives of the policy
C. policy per se
D. none of the above
2. If you were to examine the efficiency aspects in
a hospital, what would you address?
A. costs of resource procurement.
B. average cost per patient admitted.
C. achievement of goals in number of surgeries.
D. none of the above
3. Match the following w.r.t. the nature of
question to be asked
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(A)Effectiveness audit
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(A)Are the means employed for
policy implementation consistent with the sent objectives?
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(B) Evaluation of the consistency
of the programme with the policy
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(B)Are the observed results due to
the policy, or are there other causes?
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(C)Evaluation of the impact of the
policy
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(C)Are the results consistentent
with the objectives of the policy?
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(D)Evaluation of the effectiveness
of the policy and analysis of casuality
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(D)What is the economic and social
impact of the policy?
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A. A-C;B-D;C-B;D-A
B. A-B;B-A;C-D;D-C
C. A-C;B-A;C-D;D-B
D. A-D;B-C;C-B;D-A
4. Which of the following statement is TRUE with
reference to Performance Auditing and Programme Evaluation?
A. Performance auditing shares similar approaches
and methodologies with programme evaluation but does not generally extend to
assessing policy effectiveness or policy alternatives
B. Auditors cannot employ tools of programme
evaluation in performance auditing as programme evaluation techniques are
mainly statistical based
C. Programme Evaluation techniques cannot be
employed in performance auditing as it requires special skills and knowledge
D. Performance auditing and programme evaluation
have the same scope and both uses the same tools and techniques
5. Which of the following is NOT likely to be major
consideration for selecting individual performance audit topics?
A. Significance of the topic
B. Materiality of the topic
C. Visibility of the topic
D. Available manpower inhouse
6. Find out the incorrect statement
A. It is not always necessary to conduct
performance audits of the entity or the programme as a whole
B. The subjects of performance audit may be selected
cutting across various departments or entities
C. AG should be alive to people centric cutting
edge issues but not to take non-financial subjects
D. none of the above
7. A field unit of SAI decides to conduct
performance audit on a topic 'prevention of adultration of food and beverages'.
The total expenditure on the activity during the five year period was a mere 5
lakh rupees. SAI field office decides to conduct a performance audit deploying
three performance audit parties. Whether selection of such a topic is
justifiable in terms of with reference to the conditions imposed by the
performance audit guidelines on selection of performance audit topic?
A. No. According to the performance audit
guidelines, care should be taken while selecting performance audit topics and
audit resources should be engaged in high material value transactions
B. Yes. According to the performance audit
guidelines only topics where no money value is involved should be selected
C. Yes. According to performance audit guidelines,
while selecting people centric topics, the criteria to be applied for selection
is not just financial materiality.
D. No. According to the performance audit
guidelines, SAI should not be sentimental in dealing with selection of topics.
SAI's audit resources should be deployed without being sensitive to the issue
of the people
8. One of the considerations while undertaking risk
assessment for prioritizing the subjects identified for performance auditing is
past coverage. Which of the following is NOT true with reference to the
coverage?
A. Coverage refers not only to previous SAI
coverage but also to other independent reviews of the activity. Such reviews
may have been conducted by internal audit, external consultants or government
committees or the activity could have been subject to programme evaluation
B. As a general rule, a low ranking would occur
when there has been a substantial review of the activity within the past two
years.
C. Even though the topic was covered by independent
reviews extensively in the past two years, a higher ranking would be warranted
where the audit has been requested by the legislature or by the government and
the previous performance audit indicated that such a follow-up should occur
D. Coverage refers only to previous SAI coverage
other independent reviews of the activity are not relevant to SAI performance
Audit
9. In analyzing risks which of the following
question should be addressed w.r.t. PA
A. what can go wrong?
B. what is the probability of it going wrong?
C. what are the consequences?
D. All of the above
10. Which among the following is correct as to prioritization of the
selected subject
A. The thumb rule for prioritization is to be
guided by the materiality multiplied by risk parameters
B. The existence, intensity and impact of risks
need not be considered in tandem
C. where the available resources place a constraint
outsourcing in part or full including core audit functions may be done
D. none of the above
11. Match the following w.r.to the characteristics of good criteria
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(A)Reliable criteria
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(A)are clearly stated and are not
subject to significantly different interpretations
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(B) Objective criteria
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(B)results in findings and
conclusions that meet user’s information need
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(C)Useful criteria
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(C)are free from any bias of the
auditor or management
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(D)understandable criteria
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(D)result in consistent
conclusions, when used for assessment in the same circumstances
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A. A-D;B-C;C-B;D-A
B. A-D;B-A;C-B;D-C
C. A-C;B-D;C-A;D-B
D. A-C;B-A;C-D;D-B
12. Which among the following is incorrect as to the criteria
A. The higher the degree of acceptance of the
criteria, the more effective would be the PA
B. The audit should note the shift in the role of
Governments from a ‘facilitator and regulator’ to ‘provider of services’
C. The audit should take into account the shift
from a ‘Government-Centred’to a ‘people-oriented’approach
D. none of the above
13. In instances where an audit body disagrees with the audit criteria
then the SAI should:
A. convene a meeting with the head of the audited
body and get him/her to agree on the audit criteria
B. amend the criteria to suit the requirements of
the audited body.
C. weigh the facts and arguments presented by the
audited body against other relevant facts and arguments.
D. none of the above
14. Suitable criteria should be identified to enable the performance
auditors to assess the activities subject to audit and to achieve the audit
objectives. Which of the following is NOT a characteristic of good criteria?
A. Reliability
B. Objectivity
C. Usefulness
D. Complexity
15. The recommendations suggested to ready the deficiencies may be acceptable
when
A. the audit objectives have been communicated to
the entity
B. the audit criteria accepted by the entity and no
disagreement exists on audit findings
C. the audit findings are supported by competent
relevant and reasonable evidence
D. All of the above
16. Considerations that determine the strength of evidence is
A. If the observation is highly significant and
material, it will require stronger evidence to sustain
B. The strength of evidence should be very high
when the degree of risk associated with wrong conclusion is low
C. Evidence needs to be more convincing, if the
issue is noncontroversial or insensitive
D. none of the above
17. An expert is a person or firm possessing special skill, knowledge
and experience in a particular field other than auditing. Performance auditing
may use the services of experts. Which of the following statement is CORRECT
with reference to the procurement of the services of the expert or using the
work of the experts from time to time?
a. When using the work performed by an expert,
sufficient and appropriate audit evidence should be obtained to ensure that
such work is adequate for the purposes of the audit.
b. Because of the diverse range of
activities/subjects to performance auditing, Accountant General may need to
obtain audit evidence in the form of reports, opinions, valuations and
statements of an expert.
c. When the performance auditor uses the work of an
expert as audit evidence, the responsibility for the conclusions in the audit
report lies with the expert
B. a, b, c
C. a, b
D. a, c
E. c only
18. Which of the following statement is INCORRECT with reference to
the area and scope of performance auditing?
A. It is always necessary to conduct performance
audits of the entity or the programme as a whole by engaging sufficient
manpower.
B. The scope and audit objectives of a performance
auditing can be confined only to significant aspects of the programmes or
activities.
C. Where desirable, the subjects of performance
audit may be selected cutting across various departments or entities
D. The selection of the components or parts of the
programme may be guided by the materiality and risk profiles of each part or
component
19. What does the word 'reasonable assurance' signify with reference
to performance auditing?
a. Reasonable assurance relates to the accumulation
of audit evidence necessary for the auditor to conclude whether there are any
material misstatements in the information relating to performance
b. What is ‘reasonable’ is dependent on the facts
of that situation and is to be determined by what evidence could reasonably be
expected to be gathered and what conclusions could reasonably be expected to be
drawn in the particular situation.
c. A performance audit conducted in accordance with
applicable auditing standards provides reasonable assurance as to whether the
information relating to performance is free from material misstatement
d. Performance Audit does not embrace the concept
of providing any reasonable assurance because the concept of reasonable
assurance is with reference to the ‘true and fair’ view of the financial
statements.
B. a, b, c, d
C. a, b, c
D. b,c,a
E. only d
20. Which among the following factor that affect the evidence
A. samples selected are representative
B. incomplete evidence and does not establish a
cause and effect relationship
C. unbiased evidence
D. Evidence that is not conflicting
21. The important characteristic of sound evidence is
A. it should be logical and self-sustaining
B. it should support the audit observations
C. provides basis of arguments against the best
possible counter argument
D. All of the above
22. A performance audit report is said to be balanced
A. if the report adds value to the entity
B. if the report is ensured through fair
conclusions and balanced content and tone
C. if good performance should also be reported
D. none of the above
23. The strategic plan for performance audits, in pursuance of the
strategic goals and objectives, prepared by each Accountant General will be
approved by SAI top management. The strategic plan document forwarded to the
SAI Headquarters should be self-contained. Which of the following is LEAST
likely to be part of the strategic plan document?
A. Strategic goals and strategic objectives set for
the office/ SAI to be attained through performance audits over the perspective
plan period
B. Risk assessment of all programmes or activities
of the entity's operations that are within the audit jurisdiction of the
Accountant General
C. Executive summary containing a gist of the
strategic plan including categorisation of the types of subjects selected for
performance audit viz:financial, non-financial, public interest and governance
related subjects, recent policy shift issues, concurrent and prescience
subjects
D. A tentative programme of entity field offices to
be visited including the details of the personnel who were proposed to be
deployed for the performance audit.
24. Quality control and management system in the context of
performance audit consist of
A. evaluating the intended outcome of the
performance audit
B. strategic/perspective/operational planning
C. post audit quality review on selective basis by
SAI top management
D. All of the above
25. In vetting the action taken notes’ the audit has to concentrate on
A. substantive action on the recommendations
B. the form of the report
C. the action taken report be accepted only on
verification
D. none of the above
26. Which of the following is MOST likely to be the time frame covered
by a strategic plan document?
A. One year
B. Six months
C. One quarter
D. Five years
27. The most important measure of quality of a performance audit would
be:
A. The extent of positive impact on the policies
and programmes of the government through performance audit
B. The number of pages of the report turned down by
the performance audit team
C. The number of recommendations made in the report
based on the audit evidence
D. The extent of audit analysis and auditing
techniques used in the conduct of performance auditing
28. Which of the following is generally considered as the last stage
in a performance audit life cycle?
A. Finalizing the audit observations
B. Submission of an audit report incorporating the
findings
C. Follow-up procedures on audit recommendations
D. Planning for next performance audit
29. Which of the following statement signify the difference between
the term 'performance audit process documentation' and 'performance audit
documentation'?
A. Performance audit process documentation is the
documentation of the performance audit management whereas performance audit
documentation refers to the working papers for performance audit in support of
audit findings, conclusions and recommendations.
B. Performance Audit documentation is the
documentation of the performance audit management and performance audit process
documentation is the documentation of the working papers
C. Both A and B
D. None of these
30. An independent assessment or examination of the extent to which an
entity, programme or organisation operates efficiently and effectively, with
due regard to economy is called:
A. Independent Auditing
B. Entity auditing
C. Performance Auditing
D. Financial Auditing
31. Which of the following is CORRECT with reference to the
Performance Audit Annual Plan?
A. Performance Audit Annual operational Plan
prepared for a financial year
B. The time schedule for completion of all stages
of a selected performance Audit subject can spread over more than one financial
year
C. None of the above
D. Both 1 and 2
32. Which of the following statement is INCORRECT with respect to strategic
planning of SAI?
A. All SAI field offices may carry out in-depth
exercise for performance audit strategic planning.
B.
C. After setting the strategic goals and
objectives, the data on entity contained in budget papers, programme papers,
plan documents, annual reports, parliamentary debates and reports, media
concerns, research and reports of international agencies, follow-up and leads
from the past audits, etc. should be analysed on the parameters of risk,
materiality, significance, visibility, coverage, etc. to select subjects for
performance audits to be carried out over the strategic plan period.
D. SAI top management may conduct brain storming
meetings with Accountants General from time to time in respect of audit
strategic and annual operational plan and risk assessment to select the subject
which addresses the SAI's concerns for high risk programmes and activities.
E. The strategic planning is normally done for a
period of five years and after approval by the SAI top management, it becomes a
static document. No deviations from the plan are permissible until a review is
taken up after five years as a rollover exercise.
33. Which of the following is NOT correct regarding the strategic plan
document in the context of performance auditing?
A. Strategic planning is the process of determining
the long-term goals of performance auditing and the best approach for attaining
them.
B. The strategic planning document define the
long-term mission statement consisting of goals to be achieved through the
performance audits, statements of detailed objectives expected to be
accomplished through performance audits and the subjects of performance audits
to be carried out in pursuance of the strategic goals and objectives
C. Strategic planning for performance auditing and
overall strategic planning of SAI are one and the same
D. All of the above
34. Which of the following is not a type of programme evaluation
techniques commonly used in performance auditing?
A. Process evaluation
B. Outcome evaluation
C. Impact evaluation
D. Policy Evaluation
35. The audit team would like to verify the quality of the 'Patients
Management System' bought by the Hospital last year. What would be an
appropriate method that the team can use to best allow for gathering of audit
data in an efficient and effective manner?
A. Physical observation of patients and interview
with doctors
B. Physical observation and documentary review of
payments to the supplier
C. Documentary review, statistical sampling of
equipment and interview with patients
D. Survey with the system users and review of
complaints made to the hospital IT unit
36. Find out the incorrect statement w.r.to quality assurance in PA
A. Quality assurance is process-centric
B. Quality assurance is for the entire life cycle
of the performance audit
C. Quality assurance is applied after the work is
completed
D. Quality assurance concerns all steps and
techniques that PA auditors must follow to assure quality audit
37. Which among the following is incorrect statement w.r.to quality
control
A. quality control system attempts to make sure
that results of PA are what was expected
B. quality control measures apply to individual
stages or products
C. quality control is process centric
D. quality control is applied after the work is
completed
38. Which among the following is a fundamental principle of
Performance Audit
A. performance audit should not include sunrise
issues in the light of policy issues
B. performance audit can be carried out posteriori
or concurrently
C. Cutting edge issues that form the core of
governance is outside the scope of performance audit
D. none of the above
39. It is important to identify and analyse the risks associated with
the entities under audit jurisdiction. In the context of performance audit which
of the following statement about risk would be appropriate?
A. The risk to delivery of an
activity/scheme/programme of the entity with economy, efficiency and
effectiveness
B. The risk to material misstatements in the
financial statements of the entity
C. The risk to programme implementation due to
natural calamities such as flood, earthquake etc
D. The risk to programme implementation due to
fraudulent activities
40. A performance Auditor is expected to demonstrate and practice
ethical principles and code of conduct and standards while undertaking
performance audits. Which of the following statement is true in this regard?
1. The performance auditor should comply with
ethical principles and code of conduct governing the auditor’s professional
behaviour and responsibilities, which include integrity, objectivity and
fairness, confidentiality, technical standards
2. It may be desirable that the performance auditor
adopts an attitude of professional scepticism throughout the audit, recognising
that circumstances may exist that could cause the information relating to
performance to be materially mis-stated
B. Both a and b
C. Only a
D. Only b
E. None of these
41. The performance auditor might seek to assess or measure
effectiveness by comparing outcomes – or impacts – with the goals set in the
policy or programme objectives. Such an assessment is also called:
A. Improvement Analysis
B. Goal-Achievement Analysis
C. Financial Inverse Tree
D. Regression Analysis
42. Accountants General should be alive to people -centric cutting
edge issues while selecting performance audit topics. Which of the following
statements are true with reference to selection of people centric topics for
performance auditing?
A. SAI may select topics for performance audit, for
which there are either no budgets or these are insignificant, or whose
materiality cannot be determined with reference to expenditure, receipts or
assets and liabilities only if the subject or the deficient performance could
affect a large or vulnerable section in a significant manner.
B. The materiality of such topics could be
determined with reference to the size of the population that is affected and
the risk may be assessed with reference to consequence of deficient performance
or non-existent intervention by the entity, expected to address such issues.
C. Both A and B
D. None of the Above
43. Audit findings should be
A. developed on the basis of audit tests carried
out on the sample
B. in the context of audit objectives and criteria
C. determined to be able to recommend remedial
measures w.r.to causes of under performance
D. All of the above
44. The potential impact of the performance audit on economy is
A. better identification/justification of need
B. introducing sub objectives and targets
C. reduction in costs through better contracting
bulk buying, etc.,
D. none of the above
45. Which of the following feature measures the extent to which
objectives are achieved and the relationship between the intended impact and
the actual impact of an activity?
A. Efficiency
B. Effectiveness
C. Economy
D. Equity
46. Which of the following is part of the performance audit impact
analysis?
A. The analysis should provide a comparison of the
actual impact against the expected outcome anticipated in the strategic plan
and in the audit plan for the individual subjects.
B. The evaluation will have to necessarily refer to
the strategic goals and objectives set out in the performance audit strategic
plan and would need to address the extent of contribution of each performance
audit to fulfilling the strategic goals and objectives
C. The impact should be assessed in both
qualitative and quantitative terms and be classified in qualitative and
quantitative terms.
D. All of the above
47. The audit techniques applied to performance audit of subjects relating
to sustainable development and environment management are generally similar to
those applied to other sectors though the audit objectives and approach may
vary. Which of the following statement are correct in respect of audit of
subjects relating to sustainable development?
A. The performance audit on sustainable development
would deal with programmes and activities in the context of explicit
commitments consequent upon international treaties on environment / sustainable
development.
B. The performance audit on sustainable development
should take into consideration national environmental management programmes.
C. The performance audits of all development
projects should also address the environmental impact and its management
D. All of these
48. The potential impact of Performance Audit on improved planning,
control and management is
A. improved form of account, including commercial
formats
B. improved external control and monitoring by
departments
C. greater information on sectoral performance
D. target controls against fraud
49. A Performance Audit in an IT environment should
A. assess whether the IT systems enhance economy,
efficiency and effectiveness of the entity’s/programme management
B. examine the IT system development and
maintenance practices of the entity
C. determine whether system out put meet entity
quality and service delivery parameters
D. All of the above
50. “Performance audit is concerned with the audit of economy, efficiency
and effectiveness. Which of the following statement is NOT TRUE with reference
to performance auditing?
A. It embraces audit of the economy of
administrative activities in accordance with sound administrative principles
and practices and management policies
B. It embraces audit of the efficiency of
utilisation of human, financial and other resources, including examination of
information systems, performance measures and monitoring arrangements and
procedures followed by audited entities for remedying identified deficiencies
C. It embraces audit of the effectiveness of
performance in relation to the achievement of the objectives of the audited
entity and audit of the actual impact of activities compared with the intended
impact
D. It embraces verification of the account balances
with reference to the books of accounts to ensure whether statement of accounts
presents a true and fair view of the state of affairs of the organization.
51. CAATs tools can be developed to
A. access and extract information from auditee
databases
B. perform sampling, statistical processing and
analysis
C. provide reports designed to meet particular
audit needs
D. all of the above
52. Which is the powerful software tool for evaluation of ongoing
projects, particularly those with long gestation
A. crystal Ball
B. Teammate
C. Earned value Analysis (EVA)
D. none of the above
53. A diagrammatic representation of the analysis of utilisation of
the resources made available for a programme which facilitates a comparison of
the budgeted resources with the actual utilization is called:
A. Financial statement
B. Budget Tree
C. Finance Inverse Tree
D. Regression Chart
54. To draw a sample of the beneficiaries E.g. sample states/districts
within the selected state
A. cluster sampling is used
B. Systematic sampling is used
C. multi-stage sampling is used
D. none of the above
55. Spending less, spending well, and spending wisely refers to:
A. Economy, Efficiency and Effectiveness
respectively
B. Efficiency, Economy and Effectiveness
respectively
C. Effectiveness, economy and efficiency
respectively
D. Effectiveness, efficiency and economy
respectively
56. The SAI must use its power of access to information tactfully.
This implies that:
A. the audited entity must be informed of the
intention to audit and audit scope at least three months in advance
B. requests sought by the audited entity for
changes in the dates of audit must be considered
C. it is desirable that the audited entity is
informed of the methods to gather evidence like survey of beneficiaries,
interview with employees
D. giving advance information about the audit to
the audited entity takes away the surprise element from audit and hence could
be avoided
57. Economy, efficiency, effectiveness, equity and ethics are, in
effect, three plus two issues rather than five issues. Which of the following
is correct with reference to this statement?
A. Equity and ethics issues in performance audits
add value only if the audit findings against these two standards affect one or
more of the three i.e. economy, efficiency and effectiveness
B. Ethics and equity are related to the policy
issues and an Auditor has no role in ensuring the ethical and equitable
behavior of the management
C. Ethics and equity are difficult to ensure if
economy, effectiveness and efficiency has to be ensured
D. Ethics and equity are automatically ensured if
economy, effectiveness and efficiency issues are addressed
58. It will demonstrate the cerebral competence of the SAI if it is
able to display an ability for prescience of the policy shifts and more
importantly anticipation of the risks to programmes, performance and public
interest. Which of the following statement is relevant in this regard?
A. Accountants General and the SAI should be alive
to major shifts in the policies and programmes of the entity and the
consequential new public sector programmes and select critical cutting-edge
subjects for performance audits in the context of policy changes.
B. Performance audits of sunrise issues are likely
to contribute value to the implementation of the policy shifts
C. Both A and B
D. None of these
59. Which of the following are considered quality assurance
activities?
A. Report to management on progress against budget
B. Report to management on progress against
schedule
C. Supervision
D. Allocation of responsibilities
E. All of the above
60. Which of the following is Least likely to be part of a performance
auditing?
A. Examination and reporting on the quality of
information and advice available to government for the formulation of policy
B. Examination and reporting on the existence and
effectiveness of administrative to inform the government whether programme
objectives and targets have been determined with a view to fulfilling policy
objectives
C. Examination and reporting on compliance to
applicable laws and regulations in the context of the performance audit
objectives
D. Examination and reporting on policies formulated
by the government per se
61. Selection of audit topics for performance audits should be
determined on which of the following stages of the audit:
A. pre-study
B. research and evaluation
C. main study
D. none of the above
62. Which of the following should the auditor first consider when
planning the audit:
A. the audit objectives and criteria.
B. the audit objectives and findings.
C. the audit objectives and methodology.
D. the audit objectives and scope.
63. Based on strategic planning and further risk assessment,
Accountant General identifies a performance audit subject with high priority
and whose postponement may be associated with risk. But available manpower put
a constraint on undertaking such tasks. Which of the following could be the
best alternative in such a situation?
A. Accountant General may postpone the other
performance audits selected for the year and divert the resources
B. Accountant Genearal may request the Internal
Audit wing of the entity to undertake a performance Audit.
C. Accountant General may document in details the
reasons for not being able to undertake the high priority task after analyzing
the resources
D. Accountant General may examine the possibility
of outsourcing works in part or full other than the core audit functions with
the approval of SAI top management in accordance with the extant policy within
the SAI.
64. What is true in respect of case study technique
A. It is an-indepth study of individual cases to
explore the audit issues
B. Examining a small selection of cases is cheaper
that studying a larger representative sample
C. case studies involve judgment in selection and
is open to bias
D. All of the above
65. The weakness/concern of using benchmarking technique is
A. It stimulates an objective review of processes,
practices and systems
B. It supports recommendations for making changes
C. Bench Marking requires high degree of skill
D. none of the above
66. Which among the following is correct w.r.to the measures of common
tendency
A. mean is a good choice when the underlying data
distribution is strongly asymatric
B. In median one need not look for a symmetric data
distribution before application
C. Mode is the most common value of a variable
D. none of the above
67. In considering the steps of the performance audit process, which
of the following is more likely to provide information on the implementation of
audit recommendations?
A. Reporting
B. follow-up
C. main study
D. Planning
68. The audit findings in the report are put into perspective and
congruence is ensured when:
0. Audit objectives link with audit questions
1. Audit link conclusions with findings
2. Recommendations link with overall objectives
B. only 1 is correct
C. only 2 is correct
D. only 3 is correct
E. All of the above are correct
69. PERT refers to:
A. Programme Efficiency Review Technique
B. Programme Evaluation and Review Technique
C. Programme effectiveness review time
D. Programme efficiency review time
70. Which of the following method is suggested in the performance
auditing guidelines for obtaining a 360 degree feedback for the performance
audit endeavour?
A. Setting up a system for internal evaluation of
impact of performance audits at the close of each year on governance in general
and on the entity’s policies and programme management, in particular.
B. maintain an inventory of recommendations, which
are included in the performance audits and follow them up to their
implementation, both from the point of nominal count as well as from the point
of the quality of implementation
C. Both A and B
D. None of the Above
71. The first stage in performance auditing is:
A. Implementation of performance audit for
individual subjects
B. Strategic planning for performance audits
C. Follow up process and impact assessment
D. Drafting guidelines for performance auditing
72. Which of the following is NOT an advantage of setting audit
objectives in the performance audit?
A. It ensures good quality performance audits and
therefore, is one of the most important quality assurance measures
B. It fosters discipline and precision
C. It helps focused data gathering activities
D. It helps in undertaking the risk analysis
73. If new information/problems have come to the notice of audit team
during the conduct of audit, then
A. changes should not be made to increase the scope
of the audit work plan even if the new audit procedure could have a significant
impact on the overall audit question as such increase in scope will cost more
time and money.
B. changes should not be made to increase the scope
of the audit work plan even if the new audit procedure could have a significant
impact on the overall audit question, but the information/issue could be
recorded for subsequent audits or for coverage during follow-up audit.
C. changes should always be made to the audit work
plan on collection of new information as performance audit plans are required
to be flexible.
D. none of the above is correct
74. Which of the following is LEAST likely to be the objectives of
strategic planning in SAI?
A. provide a firm basis for the SAI management to
give strategic direction for future audit coverage
B. provide a platform for communication with
agencies and the legislature on SAI audit strategies
C. understand entity risks and take them into
account in audit selection
D. initiate disciplinary actions against the
non-performing audit staff in SAI
75. Which of the following documents can act as source documents for
strategic planning for performance auditing?
A. Documents of the entity including their
administrative policies
B. Parliamentary interest in the form of
legislation, parliamentary questions, reports of PAC etc
C. Academic research on entity activities
D. All of these
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