Regulatory Framework for Auditing

Which of the following is NOT a statutory rights of an external auditor?

• Rights to attend any general meetings of the company

• Rights to attend any directors meetings of the company

• Rights to speak at general meetings attended on matters concerning them as auditors

External auditor shall ensure an effective and efficient control is in place to safeguard the company's assets.

• True

• False

Which of the following is NOT the statutory duty of an external auditor?

• To report his opinion on whether the financial statements give a true and fair view.

• To ensure the accounting and other records are kept as required by the Company Act 2016

• To attend attend general meeting or annual general meeting where the financial statements are laid

Who should appoint the company's auditor in the first year of incorporation?

• Members of the company

• Board of Directors of the company

• The Registrar

Statement of Circumstances are issued by the external auditor when he was being removed by the Company.

• True

• False

Auditor is having disagreement with the management over the audit fees to be charged and choose to resign. What is the documents that the external auditor may choose to issue together with his notice of resignation?

• Statement of Circumstances

• Statement of No Circumstances

• Written Representation

Who is primarily responsible for prevention and detection of fraud and error in the company?

• Management

• External Auditor

• Internal Auditor

External auditor perform or conduct the financial statements audit in accordance to International Standards on Auditing (ISAs) issued by International Federation of Accountants (IFAC).

• True

• False

Fraud refers to an ________________ which are more ______________ to be detected.

• intentional act, easier

• intentional act, difficult

• unintentional act, easier

• unintentional act , difficult

Error refers to an ________________ which are more ______________ to be detected.

• intentional act, easier

• intentional act, difficult

• unintentional act, easier

• unintentional act , difficult