CA Inter Nature, Objective and Scope of Audit — practice questions
28 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice CA Inter Nature, Objective and Scope of Audit in the app →Auditing is best described as the independent examination of the financial information of an entity in order tAs per SA 200, the overall objective of the auditor is to obtain ___ assurance about whether the financial staReasonable assurance, in the context of an audit, is a level of assurance that is:The auditor's opinion is on whether the financial statements give a ___ view in all material respects:The responsibility for the preparation of the financial statements rests primarily with the:An attitude that includes a questioning mind and a critical assessment of audit evidence is professional:The application of relevant training, knowledge and experience in making informed audit decisions is professioTo be useful, audit evidence must be both sufficient and:The 'sufficiency' of audit evidence is the measure of the ___ of audit evidence:The 'appropriateness' of audit evidence refers to its:Most of the audit evidence available to the auditor is:The risk that the auditor expresses an inappropriate opinion when the financial statements are materially missMisstatements are considered material if they could reasonably be expected to influence the economic decisionsAn unintentional mistake in the financial statements is termed an:An intentional act of deception to obtain an unjust or illegal advantage is termed:Fraud involving collusion among employees is hard to detect, which is cited as an ___ of an audit:Treating a capital expenditure as a revenue expenditure in the books is an error of:Two or more errors whose effects cancel each other out are called ___ errors:The body of the ICAI that formulates the Standards on Auditing is the:An audit that is made compulsory under a statute such as the Companies Act is a:An assurance engagement involves at least how many separate parties?The premise on which an audit is conducted is that management acknowledges its responsibility for the:A principal distinction between accounting and auditing is that accounting is constructive while auditing is:Investigation differs from an audit mainly in that an investigation is a critical examination for a:An audit conducted by staff who are employees of the entity itself is known as:The scope of an audit is determined by the auditor having regard to the Standards on Auditing, relevant laws aA key advantage of an independent audit is that audited financial statements are:The auditor's opinion on the financial statements does NOT provide any assurance about the entity's: