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5. Third-party users of the audit report expect the auditor to do all of the following EXCEPT:- A) to determine whether financial statements are presented

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5. Third-party users of the audit report expect the auditor to do all of the following EXCEPT:- A) to determine whether financial statements are presented in accordance with GAAP. B) to provide a biased evaluation of the financial statements. C) to gather sufficient evidence to support their opinion D) to evaluate measurements and disclosures made by management- 6. Which of the following is NOT part of the responsibility of external auditors in performing audit procedures?- A) determining whether the financial statements are free from material misstatement- B) ensuring the financial statements, in all material respects are prepared in accordance with the applicable financial reporting framework C) obtaining sufficient appropriate audit evidence for preparing auditors' report D) Implementing a control systern that will property record business transactions in the accounting books and records. 7. Which of the following are reasons for the demand for auditing services? There are agency risks derived from the conflict of interest between management and owner of the company (1) There are information risks as to whether the financial statements are misleading to the intended users. (11) Since there is conflict of interest between management and shareholder of the company, auditing service provides a way to ensure that management performs its stewardship function (iv)It is necessary to have an independent expert such as the external auditor to provide assurance that the financial statements have no material misstatement that may mislead the intended users. A) 0. (11) and (iv) B)(. (11) and (111) C) (1) (111) and (iv) D) All of the above 8. Which of the following responsibilities rests with the management of an entity? 1). Selecting and adopting the appropriate accounting policies. (11) Ensuring the financial statements of the entity are fairly presented. (111)Preparing sustainability reports. (iv)Establishing and maintaining an effective internal control system. A) (i) and (iv) B) (). (11) and (iv) C) () (111) and (iv) D) (1) and (ii)

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