Basic Concepts of Auditing – Test 1

———–is an independent examination of financial information of any entity, whether profit oriented or not, and irrespective of its size or legal structure, where such as examination is conducted with a view to express an opinion.

The main objective of financial audit is————

To ensure the financial statements as a whole are free from material misstatements is the

The audit should be organized to cover adequately all aspects of the enterprise relevant to the financial statements being audited, is one of the merit consideration is regard to ——-

Auditor gives ————regarding the financial statements

Auditing begins where————ends.

Which type of organizations use auditing services?

Auditing should be ———–

Users of financial statements includes ——–

An audit which is governed by law is called as ———–

The scope of work of the audit is specified by the management for ———–

Who is responsible to express opinion on the true and fair view of the financial statements ?

State which of the following statement is not true with reference to the scope of audit

The principal aspects to be covered in an audit concerning final statements of account are
i. An examination of the system of accounting and internal control
ii. Reviewing the system and procedures
iii. Checking of the arithmetical accuracy of the books of account

iv. The audit should be organized to cover adequately all aspects of the enterprise relevant to the financial statements being audited

The chief utility of audit lies in reliable financial statements on the basis of which the state of affairs may be easy to understand. Apart from this obvious utility, other advantages of audit are ————-

It naturally calls on the part of the auditor to have a through and sound knowledge of generally accepted principles of accounting before he can review the financial statements.
Which of the following discipline matches the above statement?

————–along with other discipline such as accounting and law, equips you with all knowledge that is required to enter into auditing as a profession.

Independence comprises ———–

Chartered Accountants have an important role in ————

Which of the following categories of people use the work of Chartered Accountnat

The term financial statement shall exclude ———–

Which of the following companies will be exempted from complying with Schedule III of the Companies Act, 2013

Which of the following requires that the auditor should examine the accounts with a view to verify that all assets, liabilities, income and expenses are stated as amounts which are in accordance with accounting principles and policies which are relevant and no material amount, item or transaction has been omitted

What constitute a ‘true and fair’ view is a matter of auditor’s judgement in the particular circumstances of a case. In more specific terms, to ensure true and fair view, an auditor has to see ———–

Which of the following helps in better understanding of accounting information and meaningful comparison?

Fundamental accounting assumptions are ———-

The auditor shall report on the accounts examined by him

If auditor maintains high degree of independence, it will result in ———–

Which of following is the responsibilities of management?

Which of the following involves detailed examination of some specific areas?