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14. RDB & Co. have been appointed as statutory auditors of INA Group of Hotels. This is the first time the firm is auditing an industry in food & beverage. The engagement partner, CA R, and other key members of the engagement team have undertaken the activity of development of an audit plan of INA Hotels after thorough understanding the Hotel's business and its environment. As per SA 300, description of which of the following matters is not a part of developing an audit plan?

Options

AExport sales during the year certificate only.
BConfirmation letters only.
CBoth Export sales during the year certificate and Confirmation letters.
DNo UDIN is required to be generated. Answer Key MCQ No. Correct Option
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Correct Answer

Option CBoth Export sales during the year certificate and Confirmation letters.

All Options:

  • AExport sales during the year certificate only.
  • BConfirmation letters only.
  • CBoth Export sales during the year certificate and Confirmation letters.
  • DNo UDIN is required to be generated. Answer Key MCQ No. Correct Option

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Detailed Solution & Explanation

To determine the correct answer, let's analyze the given options in the context of SA 300, which deals with planning an audit of financial statements.
The audit plan is a critical document that outlines the scope, timing, and approach of the audit, considering the client's business and its environment.
It involves understanding the entity's business, identifying areas of high risk, and determining the appropriate audit procedures to be performed.
The audit plan typically includes matters such as the scope of the audit, materiality, audit procedures for each significant account and disclosure, and the allocation of audit work to team members.
Now, let's examine the options provided:
Option A refers to export sales during the year certificate only, and Option B refers to confirmation letters only.
Both of these options are specific audit procedures that may be included in the audit plan, depending on the client's business and the auditor's risk assessment.
Option D mentions that no UDIN is required to be generated, which is not directly related to the development of an audit plan as per SA 300.
However, the question asks for the description of which of the following matters is not a part of developing an audit plan.
Considering the context of SA 300 and the audit planning process, the development of an audit plan involves understanding the client's business, assessing risks, and determining the overall approach to the audit, rather than focusing on specific audit procedures like export sales certificates or confirmation letters.
Therefore, both export sales during the year certificate and confirmation letters are specific audit procedures that may be part of the audit plan, but they are not the primary focus of developing an audit plan.
Thus, the description of both these matters is not a part of developing an audit plan in the context of SA 300.
Hence, **Option C** is the correct answer.

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