Q41.........

Expressing an opinion on the financial statements of an entity include: I. Forming an opinion II. Concluding the evaluations III. Conducting audit procedures IV. Collecting evidences V. Evaluating the evidences The correct sequence of the above steps is

a.

III, IV, V, II and I

b.

I, II, III, IV and V

c.

IV, III, V, I and II

d.

II, III, IV, I and V

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Q42...............

The cashier has received a cheque from a customer, withdrawn cash from bank and used for personal purpose and has never reported to the owner. This is example of

a.

Embezzling receipts

b.

Stealing physical asset

c.

Error of Principle

d.

Error of omission

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Q43.............

In relation to ISA 570 on going concern basis of accounting, which of the following is true about responsibilities of auditor? I. The auditor needs to obtain sufficient appropriate audit evidence on appropriateness of the use of the going concern basis of accounting II. There should be an explicit requirement in the financial reporting framework on the responsibilities.

a.

Only I is true

b.

Only II is true

c.

Both are false

d.

Both are true

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Q44........

Financial statements of an entity has manipulated its earnings to exaggerate the performance. Who is primarily responsible for prevention of this fraud?

a.

Management and TCWG

b.

TCWG

c.

The Auditor

d.

The Management

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Q45.........

Prevention and deterrence of fraud is primary responsibility of the management of and entity and TCWG. Fraud Deterrence refers to :

a.

Persuading people to abstain from committing a fraud

b.

Allowing fraud and taking action

c.

Reducing opportunities for fraud

d.

Encouraging disloyalty