CA Inter Audit – Chapter 1 – Nature, Objective and Scope of Audit MCQs

The overall objective of an auditor is to obtain____ evidence that the financial statements are free from material misstatements.

The auditor is _____ to perform duties that falls outside his scope of competence.

Which of the following is not a scope to be covered in audit?

How many types of audit are present?

The audit of a partnership firm comes under

Which one of the following is not an advantage of audit?

The auditor cannot obtain _____ assurance that the financial statements are free from material misstatements, whether due to fraud or error.

Management may not provide complete information regarding preparation and presentation of financial statements. This is an example of which limitation of audit?

_____ is a critical examination of the accounts with a special purpose

The matter of time, difficulty or cost involved is not in itself a valid basis to omit audit procedure for which there is

Inherent Limitations of an audit is covered under which of the following standard?

____ is a limited assurance engagement and its objective is reduction in assurance engagement risk to an acceptable level.

____ requires auditors to be straight forward and honest in all professional and business relationships.

What requires an auditor not to compromise professional judgment because of bias, conflict of interest or undue influence.

Independence comprises of

Who among the following are not the users of financial information

Fundamental accounting assumptions include

Internal Auditor is appointed by

The term financial statements shall exclude

______ refers to an attitude that includes a questioning mind,being alert to conditions that may indicate possible misstatement due to fraud or error and a critical assessment of audit evidence

Which of the following helps in better understanding of accounting information and meaningful comparison

ICAI constitutes the ____ to review existing audit practices in India to develop Engagement and Quality Control Standards

The scope of the work of the audit is specified by the management for which auditor?

Who is responsible to express an opinion on the true and fair view of the financial statements

Auditing begins where ____ ends.

In which of the following engagement an opinion is expressed on a subject matter other than historical financial information

Which of the following does not belong to the code of ethics?

____ along with other disciplines such as accounting and law equips you with all knowledge to do auditing

As per SA 200 “Overall objectives of the independent auditor”in conducting an audit of financial statements the overall objective of the auditor is ____________

Which of the following id to safeguards the auditor’s ability to form an audit opinion without being affected by any influences.

An auditor must have sound knowledge of

The inherent limitations of an audit arises from

Standards on auditing are issued by

Standards on auditing are applicable on

Holding financial interest In a client and close business relationship with them gives rise to which threat?

Professional skepticism includes being alert to

If the professional becomes a witness the part to litigation to his client, results in which threat?

If the auditor has a long association with the client it will result in which threat?

If the professional who is preparing the books of accounts is also auditing the books of accounts, it shall results in which threat?

If auditor is facing threat from the client to be dismissed if he refuses to act as per their wishes this results in which threat?