The auditor shall express ________opinion when he concludes that there are possibilities of material misstatements that are pervasive to the financial statements. a. Adverse b. Qualified c. None of the options d. Disclaimer
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- 47-Which of the following case, an audit opinion with unqualified Report with Modified Wording will be issued? 1) Auditor doubt about the going concern assumption is valid 2) Auditor think the financial statements are materially misstated 3) Lack of consistent application of GAAP 4) The auditor is unable to obtain sufficient appropriate evidence a. 1 and 3 b. 3 and 4 c. 2 and 4 d. 1 and 2Q. According to ISA 200, Which of the following statement is true with respect of inherent limitation of audit? a- The auditor cannot reduce the audit risk to zero but can obtain absolute guarantee that the financial statements are free from material misstatements. b- The auditor can reduce the audit risk to zero but cannot obtain absolute guarantee that the financial statements are free from material misstatements. c- The auditor cannot reduce the audit risk to zero but cannot obtain absolute guarantee that the financial statements are not free from material misstatements. d- The auditor cannot reduce the audit risk to zero but cannot obtain absolute guarantee that the financial statements are free from material misstatements.When the auditor identifies that a key control absent he/she would most probably: Select one: a. Examine 100% of the population O b. Consider any existing compensating controls c. Conclude that a material weakness or significant deficiency exists. O d. Issue a qualified or disclaimer of opinion on internal controls over financial reporting
- 27-Under what state of affairs it implies that an auditor has obtained sufficient & appropriate audit evidences to reduce the risk of forming inappropriate opinion about financial statements of an entity. O a. Reasonable Assurance O b. None of the above O c. High level of assurance O d. Both reasonable assurance and absolute assurance19-Which among the following is the most important limitation of an audit, which result in most of the audit evidence while the auditor draws conclusions? a. Management and others do not provide complete information intentionally/ unintentionally b. Audit is not an official investigation into alleged wrongdoings c. Auditor’s opinion is mostly persuasive rather than conclusive. d. The occurrence of non-compliance with laws and regulations28) Which of the following statements are not true about auditors responsibilities? a) The financial statements are auditors responsibility b) The auditor's responsibility for the audited financial statements is confined to the expression of his or her opinion on them c) To identify and assess the risks of material mis-statement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain sufficient appropriate audit evidence to provide a basis for the auditor’s opinion d) To obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances and for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. All a) , b) , c) and d) Only a) and c) Only a) and d) Only a)
- b) Which of the following statements regarding additional information that is included in a document containing audited financial statements is not true? Group of answer choices 1: Additional information can be subject to certain limited procedures by the auditor. 2: Additional information can be the subject of another information opinion. 3: Additional information can be the subject of an in-relation-to opinion. 4: Additional information can be subject to a limited review by the auditor.The preliminary judgement about materiality is the ______________ amount by which the auditor believes the statements could be misstated and still not affect the economic decisions of users. The missing word in this sentence is: a. Average b. Minimum c. Maximum d. Median19. An auditor conducting an audit in accordance with ______________is responsible for obtaining reasonable assurance that the financial statements taken as a whole are free from material misstatement, whether caused by fraud or error. a. ISAs b. None of the options c. IFRS d. IAS
- When financial statements contain a departure from GAAP because, due to unusual circumstances, the statements would otherwise be misleading, the auditor should explain the unusual circumstances in a separate paragraph and express an opinion that is....... Select one: a. Adverse. b. Qualified. c. Qualified or adverse, depending on materiality. " d. Unqualified.2) During the audit of a client you come to the conclusion that there is minimal likelihood that resolution of an uncertainty will have a material effect on the financial report. Accordingly, assuming nothing else has come to your attention, you should issue: a. A qualified opinion. b. An unmodified opinion. c. An adverse opinion. d. A disclaimer of opinion.2. To express an opinion on financial statements, the auditor obtains reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error. Select one:TrueFalse
