Page 64 - CA Inter MCQ Book

CA RAVI TAORI CA INTER AUDIT MCQs

d) None of the above

705.7 M19M

Which of the following is correct:
a) The auditor shall express a qualified opinion 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.
b) The auditor shall express a disclaimer opinion 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.
c) The auditor shall express an adverse opinion 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.
d) The auditor shall express an adverse opinion when the auditor, having obtained sufficient
appropriate audit evidence, concludes that misstatements, individually or in the aggregate, are
material, but not pervasive, to the financial statements

705.8 N23M
An auditor disclaims opinion when_________________?

a) He is unable to obtain audit evidence and concludes that possible effects on financial
statements of undetected misstatements could be material.
b) He is unable to obtain audit evidence and concludes that possible effects on financial
statements of undetected misstatements could be both material and adverse.
c) He is unable to obtain audit evidence and concludes that possible effects on financial
statements of undetected misstatements could be both material and pervasive.
d) He is unable to obtain audit evidence and concludes that possible effects on financial
statements of undetected misstatements could be both material and perverse.

705.9 SM23
Which of the following is not correct?
a) SA 700 - Forming an Opinion and Reporting on the Financial Statements
b) SA 701- Key Audit Matters in the Independent Auditor’s Report
c) SA 705- Comparative Information- Corresponding figures and Comparative Financial
Statements
d) SA 706- Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent
Auditor’s Report

Part 4 - SA 706

706.1 M19M
Which of the following is correct:

a) When reporting on prior period financial statements in connection with the current period’s
audit, if the auditor’s opinion on such prior period financial statements differs from the opinion
the auditor previously expressed, the auditor need not disclose the substantive reasons for the
different opinion.
b) When reporting on prior period financial statements in connection with the current period’s
audit, if the auditor’s opinion on such prior period financial statements differs from the opinion
the auditor previously expressed, the auditor shall disclose the substantive reasons for the
different opinion in an Other Matter paragraph in accordance with SA 706.
c) When reporting on prior period financial statements in connection with the current period’s
audit, if the auditor’s opinion on such prior period financial statements differs from the opinion

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