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CA Final Auditor's Report on Financial Statements — practice questions — page 2

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 31–60 of 79.

Going concern means an entity will keep operating generally for at least how long ahead?Read the answer and worked solution →Which item would an auditor weigh when judging substantial doubt about going concern?Read the answer and worked solution →Which ISA prescribes reporting where a material uncertainty about going concern exists?Read the answer and worked solution →What does opinion shopping mean?Read the answer and worked solution →Which scandals led the media to popularise the term opinion shopping?Read the answer and worked solution →Opinion shopping is a clear conflict of interest that threatens what?Read the answer and worked solution →Which law and programme were made to curb opinion shopping?Read the answer and worked solution →Explanatory paragraphs after the opinion change what overall?Read the answer and worked solution →Which body was set up under the Sarbanes-Oxley Act of 2002 to oversee audit firms of public companies?Read the answer and worked solution →A review of statements differs from an audit in what way?Read the answer and worked solution →Compared with the public report, the report to the audit committee generally has what level of detail?Read the answer and worked solution →How long after the statements date must going concern be assessed, at minimum?Read the answer and worked solution →Which inquiry is listed in s.143(1)(e) of the Companies Act, 2013?Read the answer and worked solution →Section 143(2) requires a true and fair view of which items besides the state of affairs?Read the answer and worked solution →Which matter must the report cover under s.143(3)(g)?Read the answer and worked solution →Under s.143(3)(b), proper returns are expected from which places?Read the answer and worked solution →Section 143(3)(e) deals with compliance with what?Read the answer and worked solution →Section 143(3)(f) covers transactions that have what effect on the company?Read the answer and worked solution →If a s.143 reporting matter is answered in the negative, what must the report give?Read the answer and worked solution →Who directs the manner of audit of a Government company under s.143(5)?Read the answer and worked solution →A test audit ordered by the CAG under s.143(7) is subject to which law's section 19A?Read the answer and worked solution →Under s.143(10), auditing standards are prescribed by the Central Government on whose recommendation?Read the answer and worked solution →Section 143(11) lets the Central Government direct that the auditor's report includes what?Read the answer and worked solution →An auditor suspects an offence involving fraud by employees. Under s.143(12), what must be done immediately?Read the answer and worked solution →If frauds were reported only to the Board or audit committee, where must the company disclose them?Read the answer and worked solution →Section 143(13) protects an auditor who reports fraud, provided it was done how?Read the answer and worked solution →Under s.145, the person appointed as auditor must do what to the auditor's report?Read the answer and worked solution →Under s.145, auditor qualifications on adverse transactions are to be read where?Read the answer and worked solution →Section 146 requires notices of general meetings to be sent to whom besides members?Read the answer and worked solution →Under s.146, who may attend the general meeting for the auditor?Read the answer and worked solution →

Worked practice questions

Going concern means an entity will keep operating generally for at least how long ahead?

  1. Three months
  2. Six months
  3. Twelve months
  4. Five years
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Correct answer: C. Twelve months

Foreseeable future is usually regarded as at least the next 12 months or the accounting period.

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Which item would an auditor weigh when judging substantial doubt about going concern?

  1. Dates of staff birthdays
  2. Choice of furniture
  3. Defaults on loans
  4. Design of letterhead
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Correct answer: C. Defaults on loans

Negative trends, loan defaults, denial of trade credit and legal proceedings all signal going concern doubt.

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Which ISA prescribes reporting where a material uncertainty about going concern exists?

  1. ISA 520
  2. ISA 500
  3. ISA 570
  4. ISA 610
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Correct answer: C. ISA 570

ISA 570 (Revised) governs the auditor's conclusions and reporting on going concern uncertainty.

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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