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CA Final Auditor's Report — practice questions — page 2

Explore 100 free Auditor's Report 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 questions and exercises with answers

Showing questions 31–60 of 100.

Auditors give far more detail on findings to:Read the answer and worked solution →In UK reporting standards, an entity is not a going concern if management:Read the answer and worked solution →For which statements may the going concern basis be irrelevant?Read the answer and worked solution →General purpose financial statements are normally prepared on which basis?Read the answer and worked solution →The going concern principle allows a company to:Read the answer and worked solution →How do lenders and investors usually treat statements given an adverse opinion?Read the answer and worked solution →The opinion paragraph of an adverse report says the statements:Read the answer and worked solution →A review of financial statements involves:Read the answer and worked solution →Which audit opinion is popularly called a clean opinion?Read the answer and worked solution →A company did not consolidate a material subsidiary, distorting the statements as a whole. Which opinion is apt?Read the answer and worked solution →Which opinion is expressed when the auditor could not form any opinion at all?Read the answer and worked solution →A disclaimer report adds which extra paragraph?Read the answer and worked solution →In a disclaimer, the introduction changes "We have audited" to what?Read the answer and worked solution →Does an emphasis of matter paragraph modify the auditor's opinion?Read the answer and worked solution →An emphasis of matter paragraph refers to a matter that is what in the financial statements?Read the answer and worked solution →Which is NOT a modified opinion?Read the answer and worked solution →An auditor cannot observe or test a company's inventory but the rest is fair. Which opinion?Read the answer and worked solution →A retailer miscalculated building depreciation; all else is fair. What does the auditor do?Read the answer and worked solution →The traditional unqualified report body has how many main paragraphs?Read the answer and worked solution →Which paragraph states the auditor's opinion on conformity with GAAP?Read the answer and worked solution →The scope paragraph of an auditor's report mainly describes what?Read the answer and worked solution →Which is NOT a listed component of the auditor's report?Read the answer and worked solution →If the entity is a going concern, how does the auditor change the report for that?Read the answer and worked solution →Financial statements switch to the liquidation basis when what happens?Read the answer and worked solution →Which factor may raise doubt about going concern?Read the answer and worked solution →Which ISA prescribes reporting when going concern uncertainties exist?Read the answer and worked solution →A going concern is usually valued relative to its breakup value as what?Read the answer and worked solution →An auditee shops for a new auditor after learning a qualified opinion is coming. What is this called?Read the answer and worked solution →Opinion shopping threatens mainly which auditor quality?Read the answer and worked solution →A report limited to a parent company as sole user of a subsidiary's statements adds which paragraph?Read the answer and worked solution →

Worked practice questions

Auditors give far more detail on findings to:

  1. The audit committee or board
  2. Retail customers of the firm
  3. Competing audit firms
  4. The stock exchange only
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Correct answer: A. The audit committee or board

The public report is brief, so detailed findings go to the audit committee or board of directors.

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In UK reporting standards, an entity is not a going concern if management:

  1. Raises new capital
  2. Plans to liquidate or cease
  3. Pays a final dividend
  4. Changes its auditor
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Correct answer: B. Plans to liquidate or cease

An entity stays a going concern unless management intends to liquidate or cease trading or has no realistic alternative.

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For which statements may the going concern basis be irrelevant?

  1. All general purpose statements
  2. Some tax basis special purpose ones
  3. Every listed company's statements
  4. All consolidated statements
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Correct answer: B. Some tax basis special purpose ones

Some special purpose statements, such as certain tax basis ones, do not use a going concern basis.

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More Auditing topics

Overview 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 CompaniesAuditor's Report on Financial StatementsAudit Planning Strategy and Execution