๐Auditing MCQs
Auditing MCQs
122 MCQs101
Which of the following is true about explanatory notes?
AThese are given by the directors of the company
BThese are given to adhere to requirements of section 211.
CThese are given by auditors of the company in auditorโs report
DAll of the above
102
The auditor has serious concern about the going concern of the company. It is dependent on companyโs obtaining a working capital loan from a bank which has been applied for. The management of the company has made full disclosure of these facts in the notes to the balance sheet. The auditor is satisfied with the level of disclosure. He should issue___________?
Aunqualified opinion
Bunqualified opinion with reference to notes to the accounts
Cqualified opinion
Ddisclaimer of opinion
103
When restrictions that significantly affect the scope of the audit are imposed by the client, the auditor generally should issue which of the following opinion?
AQualified opinion
BDisclaimer of opinion
CAdverse opinion
DUnqualified report with โan emphasis of matterโ paragraphอพ
104
Which of the following does NOT belong in the auditorsโ report?
AIntroductory paragraph specifying the pages to which the report relates and the accounting convention adopted
BBasis of the opinion
CInvolvement of any specialist
DStatement of responsibilities of directors and auditors
105
Which one of the following is part of the auditorโs function?
AConducting the inventory count
BObtaining and evaluating audit evidence on the financial statements
CCalculating the year-end accruals figure for inclusion in the accounts
DProviding representations to management
106
What sort of assurance is provided in a review engagement?
APositive assurance
BNegative assurance
CHigh level of assurance
DNo assurance
107
For companies required to produce interim financial statements (IFI):
Aone audit firm should audit the IFI and a different firm should audit the financial statements for the year as a whole.
Bone accountancy firm should review the IFI and a different firm should audit the financial statements for the year as a whole.
Cthe same firm should audit the IFI and the financial statements for the year as a whole.
Dthe same firm should review the IFI and the financial statements for the year as a whole.
108
What is meant by negative assurance?
AThe auditor cannot give an opinion due to lack of evidence.
BThe clientโs financial statements were found to be materially misstated.
CThe auditor could not conduct any tests due to lack of controls.
DThe auditor did not find anything to indicate that a material misstatement exists.
109
Which one of the following may auditors NOT perform for their client?
ATaking management decisions
BPreparation of accounting records
CPreparing tax computations
DAdvising on weaknesses in the internal control systems
110
Which of the following are fundamental ethical principles for professional accountants? 1 Competence 2 Compliance 3 Integrity 4 Objectivity
A1, 2 and 3 only
B1, 3 and 4 only
C2, 3 and 4 only
D1, 2 and 4 only