Page 9 - CA Inter MCQ Book

CA RAVI TAORI CA INTER AUDIT MCQs

d) All of the above

200.9 SM21

The auditor’s ______ safeguards the auditor’s ability to form an audit opinion without being

affected by any influences.
a) Objectivity
b) Independence
c) Confidentiality
d) Integrity

200.11 SM21
(IESBA Code) related to an audit of financial statements establishes which of the following as the
fundamental principle of professional ethics relevant to the auditor when conducting an audit of
financial statements:
a) professional judgement;
b) professional scepticism;
c) professional intelligence
d) Professional competence and due care.

200.12 SM21
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:
a) Only Balance Sheet of the Company.
b) Financial Statements of the Company.
c) Only Profit and Loss Account of the Company.
d) Only Cash Flow Statement of the Company.

200.14 SM21
The auditor of Delicious Sweets Limited was of the opinion that objective of audit of financial
statements of a company is to provide reasonable assurance that financial statements of that
company are free from misstatements. Which type of misstatements are mentioned by auditor of
Delicious Sweets Limited:

a) Simple.
b) Material.
c) Easy.
d) Competent.

200.16 SM21/M23M
Which of the following is Incorrect:
a) An auditor conducting an audit in accordance with SAs is responsible for obtaining absolute
assurance that the financial statements taken as a whole are free from material misstatement,
whether caused by fraud or error.
b) As described in SA 200, owing to the inherent limitations of an audit, there is an unavoidable
risk that some material misstatements of the financial statements will not be detected, even
though the audit is properly planned and performed in accordance with the SAs.
c) The risk of not detecting a material misstatement resulting from fraud is higher than the risk of
not detecting one resulting from error.
d) The risk of the auditor not detecting a material misstatement resulting from management fraud
is greater than for employee fraud

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