Deck 1: Auditing: Procedures, Anomalies, and Opinions

Question 1

What happens when an auditor is not able to apply 'audit procedures' on a particularly selected item?

A)No effect on the item
B)The item is deemed not to be containing any misstatement
C)The item is deemed as a deviation/misstatement
D)None of these

Answer 1

The item is deemed as a deviation/misstatement

Question 2

What does an 'anomaly' refer to in auditing terms?

A)Another name for the statement of financial position
B)Another name for the notes to the financial statements
C)An individual misstatement that is not representative of the population misstatement
D)An 'audit test' related to the statement of comprehensive income

Answer 2

An individual misstatement that is not representative of the population misstatement

Question 3

When are audit performed?

A)Anytime during the financial year
B)Close to the financial mid-year
C)After the financial year-end
D)During the last financial quarter

Answer 3

After the financial year-end

Question 4

What does an auditor look for?

A)Reasonable assurance about the financial information being true and fair
B)Absolute assurance about authenticity of financial statements
C)Relative assurance
D)None of these

Question 5

What does a 'qualified audit opinion' refer to?

A)Auditor is 100% sure about the authenticity of the financial statements
B)Financial statements are not prepared as per the required financial standards
C)Auditor will give the opinion later
D)One or more areas of the financial statements do not adhere to auditing standards