- (A) Obtain information and explanation
- (B) Obtain information and explanation from the employees and officers
- (C) Obtain information and explanation necessary for the purpose of audit
- (D) Both
Auditing Mcqs
- (A) They are the best source of audit evidence
- (B) They should be used only when there is a lack of other substantive audit evidence
- (C) They should be used only when there is other substantive audit evidence to complement it
- (D) Shareholders receive a copy of all material written representations
- (A) Other audit clients
- (B) Previous years
- (C) Other companies in the same industry
- (D) Budget
- (A) The gap between how the directors of a company perform their duties and how the shareholders expect them to perform
- (B) The gap between how the directors of a company perform their duties and how the general public expects them to perform
- (C) The gap between the public perception of the role of company auditors and their statutory role and responsibilities
- (D) The gap between the auditors’ own perception of their duties and how they are set out in the Companies Act
- (A) Introductory paragraph specifying the pages to which the report relates and the accounting convention adopted
- (B) Basis of the opinion
- (C) Involvement of any specialist
- (D) Statement of responsibilities of directors and auditors
- (A) Conducting the inventory count
- (B) Obtaining and evaluating audit evidence on the financial statements
- (C) Calculating the year-end accruals figure for inclusion in the accounts
- (D) Providing representations to management
- (A) Positive assurance
- (B) Negative assurance
- (C) High level of assurance
- (D) No assurance
- (A) When a company negotiates a ‘friendly’ takeover, it usually appoints a firm of accountants to carry out due diligence on the takeover target.
- (B) In an attestation engagement, the accountant is required to report on the quality of work performed.
- (C) In a review engagement, evidence is gathered mainly by means of computation and inspection.
- (D) In an engagement to review financial statements, the amount of work required is the same as for an audit
- (A) one audit firm should audit the IFI and a different firm should audit the financial statements for the year as a whole.
- (B) one accountancy firm should review the IFI and a different firm should audit the financial statements for the year as a whole.
- (C) the same firm should audit the IFI and the financial statements for the year as a whole.
- (D) the same firm should review the IFI and the financial statements for the year as a whol
- (A) The auditor cannot give an opinion due to lack of evidence.
- (B) The client’s financial statements were found to be materially misstated.
- (C) The auditor could not conduct any tests due to lack of controls.
- (D) The auditor did not find anything to indicate that a material misstatement exists.
