Audit reports

Disclaimer means no opinion is given by auditors on financial statements.

• True

• False

An unqualified audit report is given by unqualified auditors.

• True

• False

There are only two types of opinions that can be given on financial statements.

• True

• False

The internal auditor is appointed by the directors.

• True

• False

Which auditor works within the company?

• Internal Auditor

• Independent auditor

• External auditor

• Qualified auditor

Who appoints the independent auditor?

• Shareholders

• Directors

• Bank manager

• SAIPA

Which will not form part of the companies annual report?

• Income Statement

• Balance sheet

• List of employees

• Audit report

The independent auditor will not:

• Inspect the companies books

• Check that Internal controls are adhered to

• Compile all statements

• Say whether the statements are reliable

How many types of opinions can be given by auditors on a company’s financial

statements?

• 1

• 2

• 3

• 4

Give the abbreviation for the South African Institute of chartered accountants.

(a)