Nature, Objective and Scope of Audit

Question 1

1. Which of the following is not an advantage of audit?...

A) It provides high quality financial information.

B) It acts as a moral check on employees.

C) It enhances risk of management bias. ✓

D) It helps in safeguarding interests of shareholders.

Question 2

2. Which of the following is NOT TRUE about an assurance engagement?...

A) It relates to providing assurance about historical financial information only. ✓

B) The practitioner obtains sufficient appropriate evidence.

C) There is some information to be examined by practitioner.

D) A written assurance report in appropriate form is issued by practitioner.

Question 3

3. Which of the following is TRUE about Engagement Standards?...

A) Engagement standards ensure proper rights to practitioners in course of performa...

B) Engagement standards ensure preparation and presentation of financial statements...

C) Engagement standards ensure uniformity by practitioners in course of performance... ✓

D) Engagement standards ensure savings in resources of clients.

Sample Questions: Auditing