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Sample MCQ For Assurance - Chapter 04 - With Answer - Mamun
Sample MCQ For Assurance - Chapter 04 - With Answer - Mamun
Sample MCQ For Assurance - Chapter 04 - With Answer - Mamun
3. In order to reach a position in which they can express a professional opinion, the
auditors need to gather evidence from various sources. The types of test which will carry
out by auditors:
5. The auditor must always carry out the following substantive procedures:
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6. ISA 500 Audit Evidence requires auditors to obtain sufficient appropriate audit evidence
to be able to draw reasonable conclusions on which to base the audit opinion. Here
sufficiency means:
7. ISA 500 Audit Evidence requires auditors to obtain sufficient appropriate audit evidence
to be able to draw reasonable conclusions on which to base the audit opinion. Here
appropriateness means:
8. Which of the following generalizations may help in assessing the reliability of audit
evidence?
9. Which of the following is the assertion about classes of transactions and events?
(a) Occurrence
(b) Completeness
(c) Cut-off
(d) All of the above
(a) Observation
(b) Inspection
(c) External confirmation
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(d) Recalculation
12. Looking at a process or procedure being performed by others falls under the category of
–
(a) Re-performance
(b) Inspection
(c) Observation
(d) Inquiry
13. The auditor may ask direct confirmation of receivables by communication with debtors
fall under the category of
(a) Re-performance
(b) Inquiry
(c) External confirmation
(d) Inspection
For each of the following statements, indicate whether they are true or false.
14. Tests of controls are tests designed to give evidence whether the controls in a company
are operating effectively or not.
(a) True
(b) False
(a) True
(b) False
16. The date of the auditor’s report should not be before the date of approval of the
financial statements by the board/competent authority.
(a) True
(b) False
17. The auditor’s report shall be dated no earlier than the date on which the auditor has
obtained sufficient appropriate audit evidence on which to base the auditor’s opinion on
the financial statements.
(a) True
(b) False
18. The auditor’s report shall name the location in the jurisdiction where the auditor
practices.
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(a) True
(b) False
19. The auditor’s signature is either in the name of the audit firm, the personal name of the
auditor or both, as appropriate for the particular jurisdiction
(a) True
(b) False
20. Which three of the following are reported by exception in the auditor’s report?
(a) All information and explanations required for the audit have been
received
(b) Adequate accounting records have been kept
(c) The financial statements have been prepared in accordance with the Companies
Act 1994
(d) Details of directors’ emoluments have been properly disclosed in the
financial statements
21. Which three of the following are included under ‘opinion paragraph’ in the auditor’s
report?
(a) Identify the entity whose financial statements have been audited
(b) Identify the title of each statement comprising the financial statements
(c) Refer to the notes, including the summary of significant accounting
policies
(d) States that the audit was conducted in accordance with International Standards
on Auditing
22. Which three of the following are included under ‘Basis for Opinion’ in the auditor’s
report?
(a) States that the audit was conducted in accordance with International
Standards on Auditing
(b) Refers to the section of the auditor’s report that describes the auditor’s
responsibilities under the ISAs
(c) State that the financial statements have been audited
(d) Includes a statement that the auditor is independent of the entity in
accordance with the relevant ethical requirements relating to the audit
23. Which of the following paragraphs have been newly inserted in the auditor’s report as
per ISA 700 (Revised) forming an opinion and reporting on financial statements?
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24. “State that reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with ISAs will always detect a material
misstatement when it exists.” This statement is mentioned in the following paragraph of
the auditor’s report:
25. “Assessing the entity’s ability to continue as a going concern and whether the use of the
going concern basis of accounting is appropriate as well as disclosing, if applicable,
matters relating to going concern.” This statement is mentioned in the following
paragraph of the auditor’s report:
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