Start learning →

CA Final Financial Audit — practice questions — page 2

Explore 49 free Financial Audit questions in CA Final Auditing. Open each question or exercise to read its content, reference answers and available explanation.

Practise Financial Audit with Quill →

Financial Audit questions and exercises with answers

Showing questions 31–49 of 49.

A material misstatement sits in one balance and is not pervasive. Which opinion is given?Read the answer and worked solution →Which paragraph is left out entirely in a disclaimer report?Read the answer and worked solution →Which situation can lead an auditor to disclaim an opinion?Read the answer and worked solution →A wholly owned subsidiary's statements are meant only for its parent. What may the report add?Read the answer and worked solution →Cash-basis statements are prepared only for tax purposes. What may the audit report carry?Read the answer and worked solution →Which engagement is not an audit but still requires a report?Read the answer and worked solution →Going concern generally means the entity can operate for at least how long?Read the answer and worked solution →A client drops an auditor expecting a qualified report, then seeks a friendlier one. What is this called?Read the answer and worked solution →Which statement shows assets, liabilities and equity at one point in time?Read the answer and worked solution →Which statement reports operating, investing and financing activities?Read the answer and worked solution →Which statement reports changes in equity over a stated period?Read the answer and worked solution →Financial statements aim to give information useful to whom?Read the answer and worked solution →Why can an audit not give absolute assurance?Read the answer and worked solution →Which of these is a method of gathering audit evidence?Read the answer and worked solution →Which body did the Securities Exchange Act of 1934 create?Read the answer and worked solution →Gladstone's 1866 Act made departments produce which annual accounts?Read the answer and worked solution →Which office now audits UK government expenditure?Read the answer and worked solution →Which firm hid off-book liabilities from banks and shareholders before collapsing?Read the answer and worked solution →Which 2002 law led to the creation of the PCAOB?Read the answer and worked solution →

Worked practice questions

A material misstatement sits in one balance and is not pervasive. Which opinion is given?

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

Correct answer: C. Qualified opinion

A material but non-pervasive misstatement in one balance leads to a qualified opinion.

Open this question →

Which paragraph is left out entirely in a disclaimer report?

  1. Signature block
  2. Report date line
  3. Scope paragraph
  4. Opening paragraph
Show answer and solution

Correct answer: C. Scope paragraph

Since no audit was effectively performed, the scope paragraph is omitted altogether.

Open this question →

Which situation can lead an auditor to disclaim an opinion?

  1. A small rounding error
  2. A routine sample test
  3. Fully completed tests
  4. Lack of independence
Show answer and solution

Correct answer: D. Lack of independence

An auditor who is not independent or has a conflict of interest may not give an opinion.

Open this question →

How to practise

  1. Choose a Financial Audit question and try to work out your answer.
  2. Open the question to check the correct answer and read its worked solution.
  3. Continue in the app for bite-sized lessons, explanations and review with Quill. You can start without creating an account.

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 CompaniesAuditor's Report on Financial Statements