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CA Final Ethics with Accounting Concepts — practice questions — page 2

Explore 38 free Ethics with Accounting Concepts questions in CA Final Financialreporting. Open each question or exercise to read its content, reference answers and available explanation.

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Ethics with Accounting Concepts questions and exercises with answers

Showing questions 31–38 of 38.

What may an auditor issue if management wrongly uses the going concern assumption?Read the answer and worked solution →Which international auditing standard deals with the going concern basis?Read the answer and worked solution →An auditor evaluates going concern for a period of at least how long after the date of the financial statements?Read the answer and worked solution →Which of these is a warning sign about an entity's ability to continue as a going concern?Read the answer and worked solution →Accrued revenue appears on the balance sheet as which item?Read the answer and worked solution →How is an accrued expense shown on the balance sheet?Read the answer and worked solution →Since which year have all listed EU companies been required to use IFRS?Read the answer and worked solution →Which is a noted limitation of accounting standards?Read the answer and worked solution →

Worked practice questions

What may an auditor issue if management wrongly uses the going concern assumption?

  1. An adverse opinion
  2. A tax notice
  3. A disclaimer only
  4. A clean opinion
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Correct answer: A. An adverse opinion

Using the going concern basis when it is inappropriate can lead the auditor to give an adverse opinion on the statements.

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Which international auditing standard deals with the going concern basis?

  1. ISA 315
  2. ISA 700
  3. ISA 570
  4. ISA 200
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Correct answer: C. ISA 570

ISA 570 (Revised) covers the auditor's evaluation of going concern and prescribes the reporting when material uncertainty exists.

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An auditor evaluates going concern for a period of at least how long after the date of the financial statements?

  1. Nine months
  2. One year
  3. Five years
  4. Six months
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Correct answer: B. One year

The evaluation covers a period not less than one year following the date of the statements being audited.

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More Financialreporting topics

Ind AS 116 LeasesInd AS 36 Impairment of Assets and Ind AS 38 Intangible AssetsInd AS 24 Related Party Disclosures and Ind AS 108 Operating SegmentsInd AS 1 Presentation of Financial StatementsInd AS 12 Income TaxesInd AS 113 Fair Value MeasurementInd AS 109 Financial InstrumentsInd AS 23 Borrowing Costs and Ind AS 40 Investment Property