The role of the auditor

Front

Auditors are employed by the company whose accounts they audit.

Back

False

Front

A true and fair view means the accounts are 100% correct.

Back

False

Front

Do auditors analyse and evaluate the entire accounting records of the business?

Back

True

Front

The audit report offers three types of opinion.

Back

True

Front

The auditor's report contains two main sections.

Back

False

Front

An unqualified opinion means the auditors are unsatisfied that the final accounts have been prepared correctly.

Back

False

Front

A disclaimer opinion means that the auditor found insufficient information was provided.

Back

True

Front

Does the audit report contain a section detailing the separate responsibilities of directors for preparing the accounts?

Back

True

Front

One advantage of the audit is that auditors may not be totally independent as they are paid by the company.

Back

False

Front

One disadvantage is that owing to time constraints and sampling size the audit does not cover all records.

Back

True