Auditing-MCQ6 - If an auditor fails to exercise due...

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Auditing – MCQ No. 6 An auditor will issue unqualified audit report only when he is satisfied that the client’s financial statements: a. Are reasonably free from any misstatements b. Contain reasonably identified misstatements c. Are not prepared in accordance to GAAP d. Contain items for which no evidence was available With a view to minimize detection risk, an auditor should exercise due professional care which means: a. He should follow previous years audit file and audit evidence b. He should have questioning mind and review internal controls c. He should follow GAAP and other regulations d. Questioning mind and critical assessment of audit evidence
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Unformatted text preview: If an auditor fails to exercise due professional care he can be; a. Removed from the audit b. Held liable for civil damages c. Given another chance d. Liable for civil damages and criminal penalties Misstatements that are not material to the financial statements are not the responsibility of an auditor: a. Correct b. May be c. Incorrect d. Not sure When a client wishes to test the professional expertise of an auditor, on a desired accounting treatment, he may refer to: a. Seniors in the audit firm b. Other clients of the auditor c. Other CPAs d. GAAP...
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This note was uploaded on 04/07/2012 for the course BUSINESS 1023 taught by Professor Msaeed during the Spring '12 term at CSU Channel Islands.

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Auditing-MCQ6 - If an auditor fails to exercise due...

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