MCQ NFRA Approves Revised Auditing Standards Questions with Answers

1. How many auditing standards were approved in the revised version by NFRA?

1) 35 standards
2) 40 standards
3) 45 standards
4) 50 standards

2. When will the revamped auditing standards take effect?

1) April 1, 2025
2) March 1, 2026
3) April 1, 2026
4) March 1, 2025

3. Which of the following standards was NOT mentioned as approved by the NFRA Board?

1) SQM1
2) SA 600
3) SA 805
4) SA 900

4. How many standards out of 40 were accepted with minor recommendations?

1) 35
2) 36
3) 37
4) 38

5. What is the new nomenclature for Standards on Auditing (SAs)?

1) IND AS
2) Ind SAs
3) ISA
4) NFRA SA

6. Which organization expressed concerns regarding SA 600 and SA 299?

1) NFRA
2) ISA
3) ICAI
4) RBI

7. What is NFRA’s stance on joint auditors?

1) Individual responsibility
2) Joint and several responsibility
3) Divided responsibility
4) Limited responsibility

8. The revision of standards aims to align with which international standards?

1) IFRS
2) ISA
3) GAAP
4) IAS

9. What will NFRA mandate for joint auditors?

1) Individual reviews
2) Partial reviews
3) Cross-reviews
4) External reviews

10. The ICAI’s proposal for joint auditors suggested:

1) Division of responsibility
2) Joint responsibility
3) Complete responsibility
4) No responsibility

11. How does the renaming align with existing standards?

1) Indian Accounting Standards (Ind AS)
2) International Standards
3) GAAP Standards
4) IFRS Standards

12. What is the primary goal of the revised standards?

1) Reduce audit time
2) Enhance compliance and transparency
3) Reduce costs
4) Simplify procedures

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13. After NFRA approval, where are the revised standards sent?

1) ICAI
2) RBI
3) Central Government
4) State Government

14. The revisions are expected to improve:

1) Audit speed
2) Cost efficiency
3) Overall integrity of financial reporting
4) Paperwork reduction

15. NFRA’s decision on joint audits contradicts:

1) Government guidelines
2) ICAI’s proposal
3) International standards
4) RBI guidelines

16. The implementation timeline allows:

1) Immediate implementation
2) Stakeholders to adjust to new requirements
3) Quick transition
4) Partial implementation

17. The number of standards that raised significant concerns was:

1) One
2) Two
3) Three
4) Four

18. The revised standards are expected to promote:

1) Faster audits
2) Lower costs
3) More rigorous auditing processes
4) Simplified procedures

19. What does NFRA oversee?

1) Banking standards
2) Auditing standards
3) Tax standards
4) Insurance standards

20. The revision represents an evolution in:

1) Banking sector
2) Regulatory landscape
3) Tax system
4) Insurance sector

21. Which body’s stance was overruled regarding certain standards?

1) RBI
2) ICAI
3) SEBI
4) Government

22. The revisions are aimed at building:

1) Market share
2) Investor confidence
3) Corporate profits
4) Audit speed

23. The implementation date is set in:

1) 2024
2) 2025
3) 2026
4) 2027

24. How many major standards were specifically mentioned in the passage?

1) 5
2) 6
3) 7
4) 8

25. The standards will be notified by:

1) ICAI
2) SEBI
3) Central Government
4) State Government

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