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Q1) What is the distinguishing characteristic of fraud for the purposes of the ISAs? It causes a material misstatement in the financial statements The auditor
Q1) What is the distinguishing characteristic of fraud for the purposes of the ISAs?
It causes a material misstatement in the financial statements
The auditor cannot make legal determination of whether fraud has actually occurred
It is accompanied by manipulation, falsification or alteration of accounting records or documentation
The underlying action resulting in the misstatement of the financial statements was intentional
Q2) Which of the following statements concerning the documentation of compliance with ISAs is correct?
(i) All professional judgment made, in an audit, must be documented
(ii) Compliance must be separately documented using, for example, a checklist
(iii) Compliance may be demonstrated by documents included within the audit file
(i) only
(i) and (ii)
(ii) and (iii)
(iii) only
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