MCQS

1

The auditor's report will not require a modified opinion where:

A a significant uncertainty exists.

B there is a disagreement with those charged with governance.

C a limitation of scope of the engagement exists.

D the financial statements are presented fairly.

2

When Kelly Lake was training her staff about the auditors responsibility for subsequent events she made the two following statements: (i) Type 2 subsequent events are those events that do not result in changes to financial statements. (ii) Type 1 subsequent events do not require adjustments to financial statements. Which of the above statements, if any, is true?

A (i) only

B (ii) only

C both (i) and (ii)

D neither (i) nor (ii)

3

When May Flower was unable to perform work on inventory because of a clients insistence that she not perform an inventory taking, what kind of audit opinion would she most likely consider?

A disclaimer of opinion

B adverse opinion

C emphasis of matter

D limitation of scope

4 If a large number of notable items is found, it may indicate there is an issue with the test, and the test may need to be revised and reperformed.

A True

B False

5 A visualization of data can be interpreted more quickly than a data table.

A True

B False