DPA40123 AUDIT 1 OBJECTIVE AND SCOPE FS AUDIT

Auditing of financial statement is related to______________

• Accounting

• Auditing

• Performing

Auditing differs significantly from accounting in terms of______EXCEPT for

• Auditing enhances the credibility of financial statements subject matter of the audit

• Audit is independent check of a company's financial statements who has nothing to do with the business.

• Audit help the accountant to prepare financial statement.

The aim of a financial audit is ______________

• to detect the mistake in the financial statements

• to provide a reasonable assurance over the accuracy of financial statements

• to fulfill the shareholders requirement

Integrity refers to ___________

• honest and straightforward in business relationship

• comply with relevant laws and regulations

• maintain professional knowledge

not allow bias and conflict of interest to override professional judgement refers to _______________________

• confidentiality

• integrity

• objectivity

The purpose of ISA 240 is ___________________

• establish basic principles and essential procedures, and to provide guidance on the auditor's responsibility to consider fraud in financial statements.

• identifying and assessing the risks of material misstatement through understanding the entity and its environment.

• concerning the continuance of the client relationship and the specific audit engagement.

According to ISA 240 the auditor need to

• communicate with management and those charged with governance

• consider and identified misstatement may be indicative of fraud

• the answer in a and b

Misstatements in the financial statements can arise from fraud and error.

• Yes

• No

The term errors refers to unintentional misstatement in financial statements including_____________

• Manipulating, falsifying or altering records or documents.

• A mistake in gathering or processing data from which financial statements are prepared.

• Recording fictitious journal entries.

_______is responsible for running the company and preventing and detecting the fraud.

• Auditor

• Shareholder

• Management