Under which section in the auditors report is the introductory paragraph stating, we have audited the financial statements of the company, is to be included?

a.

Responsibilities of Management for the Financial Statements paragraph

b.

Opinion paragraph

c.

Auditors responsibilities for the audit of the Financial Statements paragraph

d.

Basis for Opinion paragraph

Which of the following is not an analytical procedure?

a.

Computation of gross profit margin ratio

b.

All of the choices are analytical procedures

c.

Prediction of sales by multiplying prices and quantity of goods sold

d.

Comparisons of net income percentage

Which of the following statements is false? I. The establishment of the overall audit strategy and the detailed audit plan are discrete and sequential processes. II. The auditor should update and change the overall audit strategy and the audit plan as necessary during the course of the audit.

a.

Only II is false

b.

Both I and II is false

c.

Neither I nor II is false

d.

Only I is false

Which of the following is correct about the reliability of audit evidence?

a.

To be reliable, evidence should be obtained from one source only and not from multiple sources.

b.

Sufficiency of evidence refers only to the quality of evidence obtained.

c.

Information obtained orally from outside sources is the most reliable evidential matter.

d.

Effective controls over financial reporting provides more assurance on the reliability of internally generated documents