Auditing Mcqs

The client changed method of depreciation from straight line to written down value method. This has been disclosed as a note to the financial statements. It has an immaterial effect on the current financial statements. It is expected, however, that the change will have a significant effect on future periods. Which of the following option should the auditor express?

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The client changed method of depreciation from straight line to written down value method. This has been disclosed as a note to the financial statements. It has an immaterial effect on the current financial statements. It is expected, however, that the change will have a significant effect on future periods. Which of the following option should the auditor express?

A. Unqualified oion
B. Qualified oion
C. Disclaimer of oion
D. Adverse oion

Which of the following is true about explanatory notes?

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Which of the following is true about explanatory notes?

A. These are given by the directors of the company
B. These are given to adhere to requirements of section 211.
C. These are given by auditors of the company in auditor’s report
D. All of the above

The auditor has serious concern about the going concern of the company. It is dependent on company’s obtaining a working capital loan from a bank which has been applied for. The management of the company has made full disclosure of these facts in the notes to the balance sheet. The auditor is satisfied with the level of disclosure. He should issue___________?

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The auditor has serious concern about the going concern of the company. It is dependent on company’s obtaining a working capital loan from a bank which has been applied for. The management of the company has made full disclosure of these facts in the notes to the balance sheet. The auditor is satisfied with the level of disclosure. He should issue___________?

A. unqualified oion
B. unqualified oion with reference to notes to the accounts
C. qualified oion
D. disclaimer of oion

When restrictions that significantly affect the scope of the audit are imposed by the client, the auditor generally should issue which of the following opinion?

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When restrictions that significantly affect the scope of the audit are imposed by the client, the auditor generally should issue which of the following oion?

A. Qualified oion
B. Disclaimer of oion
C. Adverse oion
D. Unqualified report with ‘an emphasis of matter’ paragraph;

The auditor has a right to­___________?

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The auditor has a right to­___________?

A. Obtain information and explanation
B. Obtain information and explanation from the employees and officers
C. Obtain information and explanation necessary for the purpose of audit
D. Both B. and C.