SA 350 Quiz

What does SA 350 stand for?

• Standards of Auditing 350

• Standard of Accounting 350

• Systematic Accounting 350

• None of the above

SA 350 primarily deals with:

• Financial statement preparation

• Auditing procedures for risk assessment

• Taxation guidelines

• Budgeting and forecasting

In SA 350, what is the main objective of an auditor when assessing the risk of material misstatement?

• To provide assurance on the accuracy of financial statements

• To identify and assess risks of material misstatement, whether due to fraud or error

• To calculate the tax liabilities of a company

• To review the internal controls of a business

SA 350 requires auditors to obtain an understanding of:

• Industry trends

• Client's organizational structure and internal control

• Supplier relationships

• Customer demographics

When assessing the risk of material misstatement, auditors should consider which of the following factors?

• Management's integrity

• Competence of employees

• Regulatory compliance

• All of the above

The relationship between tolerable error and sample size is

• Inverse

• Direct

• Close

• There is no relationship

Which of the following is more scientific:

• Statistical

• Non- statistical

• both (a) and (b)

• None of the above

In non-statistical sampling, the sample size and its composition are determined on the basis of

• Personal experience of auditor

• Knowledge of auditor

• Interpretation of auditor

• All of above

Statistical sampling has the following characteristics

• Random selection

• Use of Probability theory

• both (a) and (b)

• Judgmental approach

Which of the following is source of Non Sampling risk :

• Human Mistakes

• Applying audit procedures not appropriate to the objectives of audit

• Misinterpreting the sample results

• All of the above