CA Inter Audit – Audit Report MCQs

Who is responsible for preparation of Financial Statements?

Who is responsible for necessary Internal control to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error?

Which is the purpose of the audit?

Which SA describe the objective of the auditor regarding “Forming An opinion and reporting on financial statements”?

As per SA – 700, what is the objective of an auditor?

In order to form an opinion, the auditor shall conclude as to whether the auditor has obtained _________________ about whether the financial statements as a whole are free from material misstatements, whether due to fraud or error.

To form an opinion, auditor shall conclude that ___________________

Evaluation shall include _____________

Which SA contains a discussion of the qualitative aspects and accounting practice?

Which SA addresses possible management bias in making accounting estimates?

When auditor concludes that the financial statements are prepared, in all material respects, in accordance with the applicable financial reporting framework, he shall give which opinion?

Accordance to which SA, auditor can modify the opinion?

Auditor’s report shall be in ___________________-

Audit report must be issued in ____________________

The auditor’s report shall have a title that clearly indicates that it is the report of __________________________-

Company’s auditor’s report is normally addressed to whom?

First section of the auditor’s report shall include __________________, and shall have the heading ____________________.

Opinion section of the auditor’s report shall _____________________
i.            Identify the entity whose financial statements have been audited

ii.           State that the financial statement is audited

iii.         Identify the title of each statement comprising the financial statement

iv.          Refer to the notes, including the summery of significant accounting policies

v.           Specify the date of or period covered by, each financial statement comprising the financial statements

SA – 700 requires the use of specific headings, which are intended to assist in making auditor’s reports that refers to audits that have been conducted in accordance with SA more recognizable. Which of the following is that specific heading?

When expressing an unmodified opinion, auditor shall use phrases _________

When auditor is expressing unmodified opinion, it is not appropriate to use phrases such as –

Using ‘with the forgoing explanation’ or ‘subject to’ in relation to opinion, describes which type of opinion from below –

SA – 570(revised) describe about –

SA – 701 describes about –

For audits of complete sets of general purpose financial statements of __________________, the auditor shall communicate key audit matters in the auditor’s report in accordance with SA – 701.

SA – 705 deals with the auditor’s responsibility to issue an appropriate report in circumstances when _________________

From the below which is/are types of modified opinion?

When the auditor, having obtained sufficient appropriate audit evidence, concludes that misstatement are material but not pervasive, he will give ___________

When the auditor, having obtained sufficient appropriate audit evidence, concludes that misstatements, individually or in the aggregate, are both material and pervasive, he will give _________________

When auditor is unable to obtain sufficient appropriate audit evidence and he concludes that the possible effects on the financial statements of undetected misstatements could be both material and pervasive, he will give ________________

When auditor is unable to obtain sufficient appropriate audit evidence on which to base the opinion, but the auditor concludes that the possible effects on the financial statements, if any, could be material but not pervasive, he will give _______________

A term used in the context of misstatements, to describe the effects on the financial statements of misstatements or the possible effects on the financial statements of misstatements, if any, that are undetected due to an inability to obtain sufficient appropriate audit evidence, this term is known as _________

In the auditor’s judgement, the pervasive effects on financial statements are ________________

Decision regarding which type of modified opinion is appropriate depends upon –

While giving Qualified opinion, auditor should amend the heading “basis of opinion” to _____________-

While giving adverse opinion or disclaimer of opinion, auditor should amend the heading “basis of opinion” to _____________-

A paragraph included in the auditor’s report that refers to a matter appropriately presented or disclosed in the financial statements that, the auditor’s judgement, is of such importance that is fundamental to users’ understanding of the financial statements. That paragraph can be identify as-

A paragraph included in auditor’s report that refers to a matter other than those presented or disclosed in the financial statements that, in the auditor’s judgement, is relevant to users’ understanding of the audit, the auditor’s responsibilities or the auditor’s report. This paragraph can be identify as-

Auditor would not be required to modify the opinion in accordance with SA 705(revised), as a result of emphasis of matter paragraph. This statement is ______________________.

The auditor shall include the emphasis of matter paragraph or other matter paragraph ____________________ of the auditor’s report.

Those matters that, in the auditor’s professional judgement, were of most significance in the audit of the financial statements of the current period. That matter is known as –

Communicating key audit matters in the auditor’s report is not ____________
i.     A substitute for disclosures in the financial statements that the applicable financial reporting framework requires management to make, or that are otherwise necessary to achieve fair presentation

ii.    A substitute for the auditor expressing a modified opinion when required by the circumstances of a specific audit engagement in accordance with SA 705(revised)

iii.  A substitute for reporting in accordance with SA 570 when a material uncertainty exists relating to events or conditions that may cast significant doubt on an entity’s ability to continue as a going concern

iv.   A separate opinion on individual matters

There are ____________ different broad approaches to the auditor’s reporting responsibilities in respect of comparative information.

Which are the two different broad approaches to the auditor’s reporting responsibilities in respect of comparative information.
i.            Comparative financial statements
ii.           Corresponding figures
iii.         Cumulative financial information

For corresponding figures, the auditor’s opinion on the financial statements refers to the ________________

For comparative financial statements, the auditor’s opinion on the financial statements refers to the ________________

The amounts and disclosures included in the financial statements in respect of one or more prior periods in accordance with the applicable financial reporting framework, is known as –

Comparative information where amounts and other disclosures for the prior period are included as an integral part of the current period financial statements, and are intended to be read only in relation to the amounts and other disclosures relating to the current period, is known as –

If auditor has presented corresponding figures, and the prior period report includes modified opinion and the matters which gives rise to modification is unresolved, then _________________

If the prior period financial statements are not audited, the auditor shall state in________________________ in the auditor’s report that the corresponding figures are unaudited.

When reporting on prior period financial statements in connection with the current period’s audit, if the auditor’s opinion on such prior period financial statements differs from the opinion auditor previously expressed, the auditor shall __________________

Cumulative key audit matter in the auditor’s report constitutes a substitute for disclosure in the financial statements. This statement is –