1(a) Which of the followings is not an accounting function?

Examine the reasonableness of accounting estimates ? Preparation of financial statements? Selection of accounting policies?

Recording, classifying and summarizing economic transactions?

1(b) Auditing is an independent examination of the financial statements for enhancing the financial statements' credibility. Which of the following is not the purpose of performing an audit?

To obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error? To ensure that the financial statements are absolutely correct and totally free from any misstatement? To report on the financial statements and communicate the auditors findings to shareholders? To obtain reasonable assurance about whether the financial statements, in all material respects, are prepared in accordance with an applicable financial reporting framework?

1(c) Which of the following statement is always true?

The auditor is responsible for the preparation of financial statements? The auditors report is addressed to the directors of the company?

Auditor is the agent of shareholders under agency theory? Audit is always based on facts and professional judgment is not common?

1(d) Is Auditor has the right to attend annual general meeting?

1(e) Generally, is the auditor could be legally liable under contract law and under the tort of negligence to the reporting entity?

1(f) Which of the following statements describes the principal purpose of the external audit of a company?

To prevent and detect fraud in the company?

To examine the F/S and express an opinion on the companys financial statements prepared by directors?

To assist management in the preparation of the companys financial statements?

To assist management in the maintenance of the companys accounting records?