Auditing and Ethics MCQs

Which of the following is TRUE about Engagement Standards?

• Engagement standards ensure proper rights to practitioners in course of performance of their duties.

• Engagement standards ensure preparation and presentation of financial statements in a standardized manner.

• Engagement standards ensure uniformity by practitioners in course of performance of their duties.

• Engagement standards ensure savings in resources of clients.

Standards on Auditing are____________

• Mandatory

• Optional

• Discretionary

• All of these

In which of the following engagement an opinion is expressed on a subject matter other than the historical financial information

• Auditing Engagement

• Review Engagement

• Assurance Engagement

• Related Services Engagement

Reasonable assurance is _______ level of assurance but it is not ________ assurance.

• High, Absolute

• Absolute, Guaranteed

• Moderate, Absolute

• None of these

Which of the following is not type of engagement standard

• Standards on Auditing

• Standard on Quality Control

• Standards on Review Engagement

• Standards on Assurance Engagement

Which of the following is NOT TRUE about an assurance engagement?

• It relates to providing assurance about historical financial information only.

• The practitioner obtains sufficient appropriate evidence.

• There is some information to be examined by practitioner.

• A written assurance report in appropriate form is issued by practitioner.

An employee of Fruits and Vegetables Limited was of the opinion that auditor of a company is required to express an opinion. On which one of the following the auditor of a company is required to express an opinion:

• Only Balance Sheet of the Company.

• Financial Statements of the Company.

• Only Profit and Loss Account of the Company.

• Only Cash Flow Statement of the Company.

If in exceptional circumstances the auditor departs from Standards on Auditing, he shall___________

• Document the reason for departure

• Perform alternative procedures

• Both (a) and (b)

• Auditor is not allowed to depart from SAs.

The basic requirement which is absent is auditing is

• Exact accounts

• Certainty in financial statements

• Conclusive evidence

• All of the above

No business or institution can effectively carry on its activities without the help of proper..............................:

• Audit

• Record and accounts

• neither (a) nor (b)

• both (a) and (b)