Question 1: multiple-choice questions. Choose one answer and provide explanation including supporting relevant auditing standards or regulation if there is any. (12 marks)

1. Emphasis of matter is used without an accompanying qualification of the audit report when:

1. an extreme limitation of the scope of the engagement exists.
2. a significant uncertainty exists that should be brought to the reader's attention.
3. there is a disagreement with those charged with governance regarding the selection of accounting policies.
4. all of the above.

2. When auditors are engaged in work where no assurance is provided this means;

1. Assurance is not provided as the client determines the nature, timing and extent of the evidence that is gathered and will determine their own outcome.
2. The auditors found anomalies in the financial information and no assurance will be given until further testing is conducted.
3. That the review indicates adverse finding and the auditors are not prepared to give an assurance that the information gives a true and fair view.
4. No assurance is provided as the client will determine the outcome once the auditors have gathered the correct data