hadasmolina
Quiz by , created more than 1 year ago

The role of the Auditor. what the Auditor provides and who reports to. Quality of assurance provided. Principles of how to conduct an audit

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hadasmolina
Created by hadasmolina almost 9 years ago
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Audit

Question 1 of 9

1

What is the role of the Auditor?

Select one of the following:

  • Reports on the Financial Statements to the Intended user

  • Provides Assurance on the quality of the FS

  • Reports on the Financial Statements to the Responsible party.

Explanation

Question 2 of 9

1

The objective of the audit is to provide information on the financial situation of the company.

Select one of the following:

  • True
  • False

Explanation

Question 3 of 9

1

The objective of the audit is to provide an opinion on the true and fairness of the FS of the company

Select one of the following:

  • True
  • False

Explanation

Question 4 of 9

1

What is the objectives of an auditor?

Select one of the following:

  • To provide IT support

  • To review the FS and give their opinion on the truth and Fairness on the FS and report to the intended user.

  • To do an inventory of all the assets that the company holds

Explanation

Question 5 of 9

1

What does it mean the information on the FS are True?

Select one or more of the following:

  • The information is correct and Factual. It conforms with the reality, the accounting principles and any relevant legislation. Lastly, the information is similar to the underlying accounting records that have been entered during the year.

  • The information is clear, impartial and umbias

Explanation

Question 6 of 9

1

Information to be Fair, means: the information is clear, impartial and unbiased. Information reflects the commercial substance of the transactions of the entity.

Select one of the following:

  • True
  • False

Explanation

Question 7 of 9

1

What are the principles of an audit?

Select one of the following:

  • To conduct the audit with ethics complying with the ISA's and any relevant legislation. And, to conduct the audit with Professional Skepticism.

  • The FS contain clear and impartial information.

Explanation

Question 8 of 9

1

The Pros of an audit is that: the audit provides reliable information. It is a deterrent for Mgt. (i.e: Fraud, Bias)
Increase the credibility of FS. Provides independent view to Shareholders.

Select one of the following:

  • True
  • False

Explanation

Question 9 of 9

1

What are the down sides of an Audit?

Select one of the following:

  • There are limitations because not all transactions are tested. only sample testing. Place some reliance on Mgt. It is subjective as it is choose what to test to conduct.

  • The information is impartial, clear and unbias.

Explanation

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