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CA Final Auditor's Report on Financial Statements — practice questions

Explore 79 free Auditor's Report on Financial Statements questions in CA Final Auditing. Open each question or exercise to read its content, reference answers and available explanation.

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Auditor's Report on Financial Statements questions and exercises with answers

Showing questions 1–30 of 79.

An auditor's report is best described as which of these?Read the answer and worked solution →The unqualified opinion is also popularly called which of these?Read the answer and worked solution →An auditor finds the statements free of material misstatement and fairly presented. Which report is issued?Read the answer and worked solution →The first paragraph of a traditional unqualified report is commonly called what?Read the answer and worked solution →Which paragraph of the traditional report states whether statements follow the accounting framework?Read the answer and worked solution →Under US standards, what word must the report title include to show lack of bias?Read the answer and worked solution →A retailer wrongly computes building depreciation, but the rest is fair. Which opinion fits?Read the answer and worked solution →An auditor cannot observe a firm's inventory, but all else conforms. Which qualification type is this?Read the answer and worked solution →Misstatements that are material and pervasive lead the auditor to issue which opinion?Read the answer and worked solution →The adverse opinion is regarded as the opposite of which opinion?Read the answer and worked solution →The key change in an adverse report compared with a qualified one lies in which part?Read the answer and worked solution →Which extra paragraph is added to a report containing a disclaimer?Read the answer and worked solution →A lack of auditor independence calls for which type of report?Read the answer and worked solution →Which statement on disclaimers of opinion is accurate?Read the answer and worked solution →The going concern assumption presumes a business will meet obligations for at least how long?Read the answer and worked solution →On which basis are statements prepared when liquidation becomes imminent?Read the answer and worked solution →If going concern is doubtful, where may the explanatory paragraph sit?Read the answer and worked solution →Which item is a sign the auditor weighs when judging going concern doubt?Read the answer and worked solution →Under ISA 570 (Revised), the auditor concludes whether what exists?Read the answer and worked solution →Opinion shopping means an auditee picks auditors based on what?Read the answer and worked solution →A firm dismisses its auditor before a qualified opinion and seeks one giving a clean opinion. What is this?Read the answer and worked solution →Which US law was enacted in 2002 to curb such auditor conflicts and set up the PCAOB?Read the answer and worked solution →A restriction limiting a report to one named user is called what?Read the answer and worked solution →Where is additional information usually placed relative to the opinion paragraph?Read the answer and worked solution →Who receives far more detail on audit findings than the financial statement report gives?Read the answer and worked solution →A limitation on scope that is not pervasive, with the rest fair, results in which opinion?Read the answer and worked solution →An auditor cannot form any opinion because evidence is unavailable on key areas. What does the auditor issue?Read the answer and worked solution →Failure to consolidate a material subsidiary is an example of a situation leading to which opinion?Read the answer and worked solution →In an adverse opinion, what do the statements do?Read the answer and worked solution →Which situation is a recognised ground for a disclaimer of opinion?Read the answer and worked solution →

Worked practice questions

An auditor's report is best described as which of these?

  1. A management budget plan
  2. A guarantee of profits
  3. A tax assessment order
  4. A formal audit opinion
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Correct answer: D. A formal audit opinion

It is a formal opinion, or a disclaimer of one, issued after an audit so users can make decisions.

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The unqualified opinion is also popularly called which of these?

  1. Adverse opinion
  2. Shopped opinion
  3. Scope opinion
  4. Clean opinion
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Correct answer: D. Clean opinion

Because it carries no significant reservation, an unqualified opinion is commonly called a clean opinion.

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An auditor finds the statements free of material misstatement and fairly presented. Which report is issued?

  1. Adverse opinion
  2. Disclaimer of opinion
  3. Qualified opinion
  4. Unqualified opinion
Show answer and solution

Correct answer: D. Unqualified opinion

Fair presentation without material misstatement is the condition for an unqualified opinion.

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More Auditing topics

Auditor's ReportOverview of Audit of Public Sector UndertakingsInternal AuditStandards on Auditing and Professional EthicsInternational Ethics Standards Board for AccountantsRisk Assessment and Internal ControlSpecial Features of Audit of Banks and Non-Banking Financial CompaniesAudit Planning Strategy and Execution