Answer the following parts :

Q) Which of the following is not a procedure that principal auditor should perform for ensuring completeness of information?

a) review his working papers for the prior years for the known components

b) review the statutory records maintained by the parent

c) identify the changes in the shareholding that might have taken place during the reporting period

d) None of the above

Q) Auditor may verify control, joint control or significant influence with the help of:

a) Board's minutes

b) shareholder agreements entered into by the parent

c) agreements with the entities

d) All of the above

Q) For the purpose of preparing consolidated financial statements in accordance with the Companies (Accounting Standards) Rules, 2006, the financial statements of the parent and its subsidiaries are combined on a .

a) equity Method

b) line by line basis

c) both of the above

d) None of the above

Q) The preparation of consolidated financial statements gives rise to:

a) permanent consolidation adjustments

b) current period consolidation adjustments

c) Both of the above

d) None of the above

Q) Adjustments that are made only on the first occasion or subsequen t occasions in which there is a change in the shareholding of a particular entity which is consolidated.

a) permanent consolidation adjustments

b) current period consolidation adjustments

c) Both of the above

d) None of the above

Q Determination of goodwill or capital reserve as per applicable accounting standards are .

a) permanent consolidation adjustments

b) current period consolidation adjustments

c) Both of the above

d) None of the above

Q Determination of initial amount of equity attributable to minority / noncontrolling interests .

a) permanent consolidation adjustments

b) current period consolidation adjustments

c) Both of the above

d) None of the above

Q Identify the correct one:

While working out the permanent consolidation adjustments, it may happen t hat in the case of one subsidiary, goodwill arises and in the case of another subsidiary a capital reserve arises.

a) parent may choose to net off these amounts to disclose a single amount if permitted by the applicable financial reporting framework

b) parent should not net off these amounts to disclose a single amount

c) only goodwill and capital reserves arising from current period consolidation adjustments can be netted off.

d) None of the above

Q Current period consolidation adjustments primarily relate to:

a) Determination of goodwill

b) elimination of intra -group transactions

c) Determination of capital reserve

d) All of the above

Q. Goodwill arising on consolidation is carried at the value determined at the date of acquisition of the component, and the same is to be tested for .

a) amortization loss at every balance sheet date

b) impairment loss at every balance sheet date

c) amortization loss at ever y 5 years.

d) impairment loss at 5 years.

Q Identify the correct option:

Financial statements of the components used in the consolidation should be drawn .

a) up to the same reporting date as that of the parent.

b) if financial statements are drawn up t o different reporting dates, adjustments should be made for the effects of significant transactions or other events that occur between those dates and the date of the

parent's financial statements

c) Both of the above

d) None of the above

Q As per IND-AS, the dif ference between reporting dates of parent and subsidiaries should not be more than in case of financial statements.

a) twelve months

b) six months

c) three months

d) nine months