MCQ for CA Final Audit - Chapter 6 AUDIT REPORTS

Sample Multiple Choice Questions (MCQ's) for CA Final - Paper 3 - Advanced Auditing and Professional Ethics - Chapter 6: AUDIT REPORTS - For Practice relevant for May/Nov 23 Examinations

 

Q:1 As per SA 700 "Forming an Opinion and Reporting on Financial Statements" when expressing an unmodified opinion on financial statements prepared in accordance with a fair presentation framework, the auditor's opinion shall, unless otherwise required by law or regulation, use which of the following phrase: 

   

  1. In our opinion, the accompanying financial statements present fairly, in all material respects, [...] in accordance with [the applicable financial reporting framework].
  2. In our opinion, the accompanying financial statements give a true and fair view of [...] in accordance with [the applicable financial reporting framework].
  3. In our opinion,the accompanying financial statements are prepared, in all material respects, in accordance with [the applicable financial reporting framework].
  4. Either (a) or (b).

 

Answer: 4

 

Q:2 As per SA 700 "Forming an Opinion and Reporting on Financial Statements" when expressing an unmodified opinion on financial statements prepared in accordance with a Compliance framework, the auditor's opinion shall, unless otherwise required by law or regulation, use which of the following phrase:    

 

  1. In our opinion, the accompanying financial statements present fairly, in all material respects, [...] in accordance with [the applicable financial reporting framework].
  2. In our opinion, the accompanying financial statements give a true and fair view of [...] in accordance with [the applicable financial reporting framework].
  3. In our opinion,the accompanying financial statements are prepared, in all material respects, in accordance with [the applicable financial reporting framework].
  4. Either (a) or (b).

 

Answer: 3

 

Q:3 As per SA 700 "Forming an Opinion and Reporting on Financial Statements", which section of the audit report identify the entity whose financial statements have been audited.        

 

  1. Opinion Section.
  2. Basis for Opinion Section
  3. Introductory Section.
  4. Auditor's responsibility Section.

 

Answer: 1

 

Q:4 As per SA 700 "Forming an Opinion and Reporting on Financial Statements", the auditor's report shall include a section, directly following the Opinion section, with the heading "Basis for Opinion", that includes a statement that the auditor is independent of the entity in accordance with the relevant ethical requirements relating to the audit, and has fulfilled the auditor's other ethical responsibilities in accordance with these requirements. The statement shall refer to the:       

 

  1. Code of Ethics issued by ICAI.
  2. Code of Ethics issued by Ministry of Corporate Affairs.
  3. Requirements of independence as covered in Guidance Note on Independence of Auditors
  4. Requirements of independence as stated in sec. 141(3) of Companies Act, 2013.

 

Answer: 1

 

Q:5 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:       

 

  1. Within the body of the auditor's report.
  2. Within an appendix to the auditor's report, in which case the auditor's report shall include a reference to the location of the appendix.
  3. By a specific reference within the auditor's report to the location of such a description on a website of an appropriate authority, where law, regulation or the national auditing standards expressively permit the auditor to do so.
  4. Any of the above.

 

Answer: 4

 

Q:6 "As per SA 701 ""Communicating Key Audit Matters in the Independent Auditor's Report communicating key audit matters in the auditor's report is in the context of the auditor having formed an opinion on the financial statements as a whole. Communicating key audit matters in the auditor's report can be considered as a substitute for:"             

 

  1. Disclosures in the financial statements that the applicable financial reporting framework requires management to make, or that are otherwise necessary to achieve fair presentation.
  2. The auditor expressing a modified opinion when required by the circumstances of a specific audit engagement in accordance with SA 705 (Revised).          
  3. Reporting in accordance with SA 570 (Revised) when a material uncertainty exists relating to events or conditions that may cast significant doubt on an entity's ability to continue as a going concern.
  4. None of the above.

 

Answer: 4

 

Q:7 As per SA 706 "Emphasis of Matter Paragraphs in the Independent auditor's Report" an Emphasis of Matter Paragraph is a substitute for:          

 

  1. A modified opinion in accordance with SA 705 (Revised) when required by the circumstances of a specific audit engagement;
  2. Disclosures in the financial statements that the applicable financial reporting framework requires management to make, or that are otherwise necessary to achieve fair presentation; or
  3. Reporting in accordance with SA 570 (Revised) when a material uncertainty exists relating to events or conditions that may cast significant doubt on an entity's ability to continue as a going concern.
  4. None of the above.

 

Answer: 4

 

 

CA Final - Paper 3 - Advanced Auditing and Professional Ethics - Chapter 7   

 

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