Please write the correct answer only and solve all the questions

The risk that the auditor expresses an inappropriate audit opinion when the financial statements are materially misstated is called _________.

a.

Inherent risk

b.

Risk of material misstatement

c.

Detection risk

d.

Audit risk

Ethical requirements relating to an audit of financial statements is specified under ISA 200 and includes:

a.

Excellence

b.

Profitability

c.

Accuracy

d.

Confidentiality and Objectivity

It is a process of deciding in advance what is to be done, who is to do it, how it is to be done and when it is to be done by the auditor in order to have efficient and effective completion of work.

a.

Audit evidence

b.

Audit risk

c.

Audit planning

d.

Audit documentation

______ is the file containing the records and data that shows the audit procedures performed, audit evidence obtained, and conclusions made for a specific engagement.

a.

Audit process

b.

Audit documentation

c.

Audit plan

d.

Engagement documentation

From the following choices, which form is the most reliable audit evidence?

a.

Oral

b.

Visual

c.

None of the choices are correct

d.

Written

Substantive analytical procedures are more suitable to ________ transactions tending to be predictable over time.

a.

large volume

b.

selected

c.

few

d.

large amount

Performing analytical procedures may be thought of as a four-step process. The first step is:

a.

Formulate expectations.

b.

Determine the suitability of a particular analytical procedure for given assertions

c.

Compare the expected value to the recorded amount.

d.

Evaluate the reliability of data from which the auditors expectations of recorded amounts or ratios is developed

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Independence is compromised in which of the following situation?

a.

All the choices are correct

b.

The auditor withdraws himself from the engagement team who will audit the business of his brother.

c.

The auditors brother is a CEO in the company he is currently auditing.

d.

The auditor received payment for a years past due billings from a previous client.

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Which of the following is not the responsibility of management of the company?

a.

Supplying information and explanation to the auditor

b.

Preparation of financial statements

c.

Establishment of internal control

d.

Reporting to shareholders on the fairness of financial statements

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Professional judgment is necessary for the decisions relating to:

a.

Evaluating the sufficiency and appropriateness of audit evidence obtained

b.

Evaluation of management's judgment

c.

All statements are correct

d.

Materiality and audit planning