Group 17: Other Audits

Correct answer C: Cash payment and bank agreement do not establish use for the donor-approved object.

Inspect the actual grant and variation authority; determine eligibility/refund from those terms, not a universal municipal rule.

Correct answer C: Check chargeability and assessment/exemption evidence against the independent property population.

The revenue completeness test starts beyond recorded demands; missing assessment does not itself establish exemption or a quantified charge.

Correct answer D: 80% functional output is supported;24 installed lights need investigation/remediation.

96/120=.8;24 notworking. Actual scheme conditions determine compliance and any recovery.

Correct answer B: Purpose compliance and the Rs 4 lakh unearned/refundable position, not automatic eligibility from spending cash.

Donor terms govern this exercise; paying for an unrelated asset does not eliminate the grant condition.

Correct answer D: Useful-life/depreciation-linked systematic recognition and separately disclosed unamortised deferred income.

NPO guide 49(a)(ii)recommends deferred income allocated with depreciation; apply the supplied policy rather than all-framework universal claims.

Correct answer D: Internal redesignation does not remove an external donor restriction.

Distinguish contributor restrictions, internal designation and allowable programme cost by actual agreement.

Correct answer C: Do not imply whole-business audit assurance without sufficient scope and evidence.

Written scope is necessary but does not justify a misleading larger assurance claim.

Correct answer C: Rs 4 lakh.

14-2=12 divisible;one-third=4. The exercise supplies the reserve, not a universal partnership rate.

Correct answer C: Inspect agreed powers, approvals, disposal terms, receipts and effect on partner interests.

Partnership scope includes agreed objects/powers and prejudicial conduct; verify the actual disposal and accounts.

Correct answer D: Check the agreement and authorised changes, then reconcile partner-wise allocations and current accounts.

Partner-fund disclosures and agreement evidence support accurate allocation; no statutory threshold is needed here.

Correct answer A: Preserve the source wording, disclose the unresolved current-rule check and avoid a threshold-driven verdict.

The official 2023 guide and module print OR. Current mandatory-threshold advice remains held pending primary-rule verification.

Correct answer D: Inspect legal/correspondence evidence of actual entitlement and applicable recognition conditions.

Legacy and donation evidence must substantiate the actual right/receipt; publicity is not conclusive entitlement.

Correct answer D: Rs 144000 earned rent and Rs 24000 uncollected, subject to recoverability and evidence.

12 x 12000=144000;144000-120000=24000. Inspect tenancy/rent roll and assessment of collection.

Correct answer D: Test hostel-dues recovery and refund authority; the refund does not prove dues were settled.

Module fee/deposit checks include clearing hostel dues before closing student accounts; apply actual supplied rules.

Correct answer C: Separate investment/fund records and whether excess income was accumulated and invested as required.

Endowment purpose and investment separation need evidence; entity label creates neither spending discretion nor exemption.

Correct answer D: Inspect the disallowance reasons, donor criteria and proper grant/expense consequences separately.

A cost can be an entity expense while ineligible for this grant; determine refund/recognition from the actual terms.

Correct answer A: Receipt/issue records, inventory reconciliation and authorised ward requisitions.

Hospital stores audit covers recording purchases and issuing against proper authority; movement testing complements counts.

Correct answer B: That the overrun alone proves misappropriation or a fixed modified opinion.

Budget comparison prompts explanation/authority/evidence checks; overspending is not itself proof of theft.

Correct answer B: Inspect investment rights, declaration/entitlement and actual collection before assuming income was due or missing.

Module investment-income work compares holdings/receipts and investigates omissions; declaration and entitlement need grounding.

Correct answer C: Separate the next-year advance from current earned subscriptions.

Subscription audit covers arrears and advances; verify each payment's period and account.

Correct answer C: Audit the asset/payment and report the authority breach for proper committee handling.

Financial powers and asset existence are different assertions; inspect purchase, title, authority and reporting.

Correct answer A: Rs 30000 from 12 unbilledshows.

(60-48)x 2500=30000. Slide-exhibit logs/agreement test this income stream separately from tickets.

Correct answer B: Test actual substance and applicable recognition criteria rather than apply a repair rule to every new asset.

Routine repairs and a new asset differ. Source shortcut is held; actual framework/contract evidence drives classification.

Correct answer B: Reconcile due dates, actual receipts, arrears and allocation rather than accept the ledger status.

Signed agreement, schedule and receipts determine regular payment and arrears; fees need actual terms.

Correct answer A: That the equipment was received and accepted at the stated lessee site.

Leasing procedures include proposal, invoice, acceptance and location/contract controls; invoice alone is not all delivery evidence.

Correct answer A: Test transfers, counts, pricing, wastage and revenue, and expand work according to evidence.

Portable inventory and outlet controls need movement evidence; report effects depend on supported matters, not a margin-only shortcut.

Correct answer A: Advance liability rather than earned current hall income.

Bookings must be tested for earning period/cut-off; future-service deposit does not establish current revenue.

Correct answer B: Outside valuation does not remove the auditor's need to assess reliability and evidence for the recorded inventory.

The module discusses assessing external-valued inventory; independence alone is not automatic sufficiency or zero further work.

Correct answer A: Presentation is not evidence that proper underlying records were maintained or balances supported.

Inspect actual records applicable to the entity and maintain evidence of work/explanations; appearance is not account support.

Correct answer B: Evidence supporting the opinion, including work, sources, explanations and significant decisions.

Module trust/society working-paper guidance lists work and authorship, information sources and decisions; final arithmetic is insufficient.