Q1....

In an audit, the consolidated financial statements of an entity ignored one of the standards. This led to significant difference in the financial perfo rmance and position of the subsidiary. What is definite in this case? I. The material misstatement is pervasive II. The material misstatement is not pervasive III. There is no material misstatement IV. There is a material misstatement

a.

II and III

b.

I and IV

c.

I and III

d.

II and IV

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Q2.....

The use of going concern as a basis of accounting was appropriate for an entity but there certain material uncertainties exists. What the auditor should do in this situation? I. Ensure adequate disclosures in financial statements II. Express a modified opinion because of the firms use of going concern as basis of accounting

a.

Only II is True

b.

Both are False

c.

Both are True

d.

Only I is True

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Q3......

Unless all TCWG are involved in the managing the entity, the auditor shall communicate with TCWG event or conditions that may cast significant doubt on the enitys ability to continue as a going concern.. This occurs when:

a.

No member of Management Board is in TCWG

b.

At least one member of Management Board is involved in TCWG

c.

Some members of TCWG are not members of Management board

d.

All member of TCWG are also members in management Board

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Q4.....

Omitting or advancing or delaying recognition in the financial statements or events and transactions occurred during a reporting period is an example of:

a.

Appropriate according to accrual basis of accounting

b.

Fraudulent Financial Reporting

c.

Misappropriation of Asset

d.

Error

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Q5.........

Audit evidence must be sufficient and appropriate. Sufficiency of evidence depends on:

a.

Nature of the business

b.

Auditors risk assessment

c.

Interest of the management

d.

Availability of information

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