Quality Control and Engagement Standards- Test 1

A statement as to auditor’s believing that the audit evidence, we have obtained is sufficient and appropriate to provide a basis for their opinion is mentioned in which section of the auditor’s report?

As per Standards on Auditing, the auditor shall date the report no earlier than the date:

In an auditor’s report on financial statements an unmodified opinion is issued when the auditor is satisfied in all material respects that:

Which of the following topics are not covered in the ‘Auditor Responsibilities’ paragraphs?

Based on SA 700, there are at least two circumstances where the auditor may not be able to express an unmodified opinion:

Which of the following is not a section of the SA 700 auditor’s unmodified (unqualified) opinion?

In audit report, a description that audit was performed in accordance with Standards on Auditing is given in which section?

As per SA 700 “Forming an Opinion and Reporting on Financial Statements”, the description of the auditor’s responsibilities for the audit of the financial statements shall be included:

Communicating key audit matters in the auditor’s report is

Key Audit Matters are to be communicated in Auditor’s Report

When auditor is unable to obtain sufficient and appropriate audit evidence that financial statement on which to base the opinion and the auditor concludes that possible effects of the financial statement can be both Material and Pervasive. Then the Key Matters to be included in the Auditor’s Report should

As per SA 701 “Communicating Key Audit Matters in the Independent Auditor’s Report”, the auditor shall describe each key audit matter in the auditor’s report. However, in some situations, such matters need not be communicated. Identify the situation:

Which of the following is not a type of audit opinion?

What type of opinion is issued when the auditor, having obtained sufficient appropriate audit evidence, concludes that misstatements, individually or in the aggregate, are both material and pervasive to the financial statements?

When an auditor expresses an adverse opinion, the opinion paragraph should include

Review of historical financial statements is a:

The auditor shall disclaim an opinion when the following conditions occur except:

When the auditor modifies the opinion on the financial statements, the auditor shall include a paragraph in the auditor’s report. All of the following are true of this paragraph except:

An auditor concludes that a client’s illegal act, which has a materiel effect on the financial statements, has not been properly accounted for or disclosed. Depending on the materiality of the effect on the financial statements, the auditor should express either

Ordinarily, an auditor may include an emphasis of a matter paragraph:

Which of the following is not an example of uncertainties that might be emphasis in an emphasis of a matter paragraph?

Comparative information where amounts and other disclosures for the prior period are included as an integral part of the current period financial statements, and are intended to be read only in relation to the amounts and other disclosures relating to the current period is known as:

If the prior period financial statements were not audited, the auditor shall state in__________in the auditor’s report that the corresponding figures are unaudited.

If the financial statements of the prior period were audited by a predecessor auditor and the auditor is permitted by law or regulation to refer to the predecessor auditor’s report on the corresponding figures and decides to do so, the auditor shall state in an Other matter paragraph in the auditor’s report:

As per SA 720, which of the following is not considered ‘other information’ on which the auditor may have no obligation to report but which he must check for material inconsistencies?

As per the requirements of SA 720, if the auditor concludes that a material misstatement of the other information exists, the auditor shall request management to correct the other information.

If the auditor is required by a relevant law or regulation to refer to the other information in the auditor’s report using a specific layout or wording, the auditor’s report shall refer to Standards on Auditing only if the auditor’s reporting includes, at a minimum:

Which SA deals with special considerations in the application of SAs covered in Series 100-700, to an audit of financial statements prepared in accordance with special purpose framework.

SA 800 is written in the context of

Which of the following is incorrect?

When forming an opinion and reporting on special purpose financial statements, the auditor shall apply

The auditor’s report on special purpose financial statements shall include an___________alerting users of the auditor’s report that the financial statements are prepared in accordance with a special purpose framework and that, as a result, the financial statements may not be suitable for another purpose.

SA 210 requires the auditor to determine the acceptability of the financial reporting framework applied in the preparation of the financial statements. In an audit of special purpose financial statements, the auditor shall obtain an understanding of:

Which SA deals with special considerations in the application of SAs covered in Series 100-700, to an audit of a single financial statement or of a specific element, account or item of a financial statement.

When forming an opinion and reporting on a single financial statement or on a specific element of a financial statement, the auditor shall apply

If the auditor undertakes an engagement to report on a single financial statement or on a specific element of a financial statement in conjunction with an engagement to audit the entity’s complete set of financial statements, the auditor

If the auditor concludes that it is necessary to express an adverse opinion or disclaim an opinion on the entity’s complete set of financial statements as a whole but, in the context of a separate audit of a specific element that is included in those financial statements, the auditor

If the auditor has expressed an adverse opinion or disclaimed an opinion on the complete set of financial statements as a whole, the auditor

For audit of a schedule of externally managed assets and income of a private pension plan, including related notes, the requirements of which SA will apply:

Which SA deals with the auditor’s responsibilities when undertaking an engagement to report on summary financial statements derived from financial statements audited in accordance with SAs by that same auditor.

When the auditor’s report on the audited financial statements contains an adverse opinion or a disclaimer of opinion, the auditor’s report on the summary financial statements shall,

If the summary financial statements are mot consistent, in all material respects, with or not a fair summary of he audited financial statements, in accordance with the applied criteria, and management does not agree to make the necessary changes, the auditor shall express

Risks of material misstatement at the overall financial statement level refer to risks of material misstatement

For audit of a schedule of disbursements in relation to a lease property, including explanatory notes, the requirements of which SA will apply:

Which of the following reports does not qualify as special are engagement?

An auditor may express an opinion on an entity’s accounts receivable balance even if the auditor has disclaimed an opinion on the financial statements taken as a whole provided the

The report on summarized financial statements should contain all of the following basic elements except:

SA 805 is written in the context of

SA 810 is written in the context of

For review of interim financial statements, SRS 2410 will be applied if the reviewer is:

For review of interim financial statements, SRS 2400 will be applied if the reviewer is:

Review of Historical financial statements is a:

When an entity’s auditor undertakes an engagement to review historical financial information other than interim financial information of an audit Clint, which standard will apply?

A review. in contrast to an audit, is not designed to obtain____________that the internal financial information is free from material misstatement.

Which of the following procedures is not part of a review engagement?

In a review of financial statements, if the practitioner becomes aware of a matter that cause the practitioner to believe the financial statements may be materially misstated, the practitioner

Unless required by law or regulation, the practitioner shall not accept a review engagement if

The purpose of SRE 2410 is to establish standards and provide guidance on the__________professional responsibilities when he undertakes an engagement to review interim financial information of an audit client, and on the form and content of the report.

Financial information that is prepared and presented in accordance with an applicable financial reporting framework and comprises either a complete or a condensed set of financial statements for a period that is shorter than the entity’s financial year, is known as:

In order to plan and conduct a review of interim financial information, a recently appointed auditor, who has not yet performed an audit of the annual financial statements in accordance with SAs, should obtain an understanding of the entity and its environment, including its internal control, as it relates to the preparation of:

The auditor should inquire whether management has identified all events up to the date of the ________ that may require adjustment to or disclosure in the interim financial information.

To highlight a material uncertainty related to an event or condition that may cast significant doubt on the entity’s ability to continue as a going concern, which is adequately disclosed in the interim financial information, the auditor should add___________to the review report.

The auditor should express___________when a matter has came to the auditors’s attention that causes the auditor to believe that a material adjustment should be made to the interim financial information for it to be prepared, in all material respects, in accordance with the applicable financial reporting framework.

If a material uncertainty that casts significant doubt about the entity’s ability to continue as a going concern is not adequately disclosed in the interim financial information, the auditor should express:

If a material uncertainty that casts significant doubt about the entity’s ability to continue as a going concern is not adequately disclosed in the interim financial information, the auditor should express__________.

When a matter comes to the auditor’s attention that leads the auditor to question whether a materiel adjustment should be made for the interim financial information to be prepared, in all material respects, in accordance with the applicable financial reporting framework, the auditor should

The level of assurance obtained where engagement risk is reduced to a level that is acceptable in the circumstances of the engagement, but where that risk is greater than for a reasonable assurance engagement, as the basis for expressing a conclusion in accordance with this SRE 2400 is:

Under what circumstances will the auditor give a qualified opinion in a review engagement?

Under engagements to review financial statements standards the basic review conclusions an auditor may give on a review engagement include all the following except:

The report on a review of financial statements should contain all of the following basic elements except:

To highlight a material uncertainty relating to an event or condition that may cast significant doubt on the entity’s ability to continue as a going concern, which is adequately disclosed in the interim financial information, the auditor should add____________to the review report.

Standards on Assurance Engagements are to be applies in:

Which of the following subject matters is not covered in Standard on Assurance Engagements (SAR)?

Which Standard provide guidance on engagements to examine and report on prospective financial information?

What is the type of assurance engagement that has its subject matter non-historical financial information?

As per SAE 3400, auditor should not accept, or should withdraw from, an engagement

As per SAE 3400, while examining the prospective financial information, the auditor should consider the period of time covered by the prospective financial information. Factors that are relevant to the auditor’s consideration of the period of time covered by the prospective financial information are:

When the auditor believes that the presentation and disclosure of the prospective financial information is not adequate, the auditor should

Which of the following is not one of the basic elements required to be included in the assurance report according to Standards on Assurance Engagements?

As per SAE 3400, when reporting on the reasonableness of management’s assumptions, the auditor provides

Assurance engagements undertaken by a professional account in public practice to provide a report for use by user entities and their auditors on the controls at a service organisation that provides a service to user entities that is likely to be relevant to user entities’ internal control control as it related to financial reporting are dealt by:

Which of the following is one of the basic elements required to be included in the assurance report according to SAE 3402:

Which of the following is incorrect?

A professional accountant in public practice who, at the request of the service organization, provides an assurance report on controls at a service organization, is designated as:

SAE 3402:

SAE 3420 deals with_______engagements undertaken by a practitioner to report on the responsible party’s compilation of pro forma financial information included in a prospectus.

How does the related services framework differ from the assurance framework?

The objective of an agreed-upon procedures engagement is for he auditor to carry out procedures of an ________ to which the auditor and the entity and any appropriate third parties have agreed and to report on factual findings.

Ethical principles governing the auditor’s professional responsibilities for engagement covered in SRS 4400 includes all except:

The auditor should conduct an agreed-upon procedure engagement in accordance with:

In an agreed-upon procedures engagement what matters generally have to be agreed between auditor and management?

The objective of an account’s compilation of the financial statements of a company is what type os assurance?

Engagements covered under SRS 4410 are:

SRS 4410 applies to

Which of the following statements are not true about a compilation engagement?

Which of the following is false?

All of the following procedures constitute important governance information to be gathered from the client except:

Which of the following types of evidence would an auditor most likely examine to determine whether controls are operating as designed?

A control deficiency that is more than a significant deficiency is most likely to result in what form of audit opinion relating to internal control?

Which of the following is not one of the major categories of auditor’s services?

Which of the below mentioned standards deals with the related party disclosures in the financial statements and auditors’s responsibilities regarding related party relationships and transactions when performing an audit of financial statements.

Which of the following are not management assertions?

For audit of accounts receivable, allowance for doubtful accounts receivable, inventory, the requirements of which SA will apply:

All of the following are audit procedures in the audit of inventory EXCEPT:

Obtaining audit evidence about the design and implementation of relevant control may involve all of the following except:

If the practitioner becomes ware during the course of the engagement that the compiled financial information is misleading, the practitioner shall:

Which of the following services is a CA generally required to perform when conducting a personal financial planning engagement?

According to the standards of the profession, which of the following circumstances will prevent a CA performing audit engagements from being independent?

A client maintains perpetual inventory records in both quantities and amount. If the assessed level of control risk is high, an auditor would probably

When auditing inventories, an auditor would least likely verify that

Analysis of which account is least likely to reveal evidence relating to recorded retirement of equipment?

The auditor is most likely to seek information from the plant manager with respect to the

In auditing intangible assets, an auditor most likely would review or recomputed amortization and determine whether the amortization period is reasonable in support of management’s financial statement assertion of

As per SEBI (LODR) Regulations, 2015, in case the listed entity opts to submit unaudited financial results, they shall be subjected to__________of the listed entity.

As per SEBI (LODR) Regulations, 2015, in case of public sector undertakings the the listed entity opts to submit unaudited financial results, they shall be subject to limited review by___________