Week 1: Overview of Audit - Assignment001

Objectively obtaining and evaluating evidence involves the process of communicating the audit findings to users of financial
statements by way of issuing the auditor's opinion. – FALSE

Financial statements may not disclose true picture even after audit due to inflationary trends and other economic related issues -
TRUE

Auditor may have differences of opinion with the accountants, management, engineers and other experts. – TRUE

An auditor provides absolute conclusions about the results of the audit being conducted of which is drawn from the evidence
available to the auditor - FALSE

Assertions are the representations of management that explains the economic actions and events that happen during the audit
period. Accordingly, it is not the role of an auditor to validate such assertions or management representations. - FALSE

This is a type of auditor who are working with various government agencies

Select one:
a. Government Auditors
b. External Auditors
c. General Auditors
d. Internal Auditors
The following are advantages of audit taking on the viewpoint of an investor, except:

Select one:
a. Detection of errors and frauds
b. Protects interest
c. Moral check
d. Proper valuation of investments

This type of auditor is a professional audit services provider who performs an independent examination of financial statement and
express opinion if such financial report is free from any material misstatements.

Select one:
a. Government Auditors
b. Internal Auditors
c. External Auditors
d. General Auditors
The following are advantages of audit, except:

Select one:
a. It reviews the existence and operations of various controls in the organizations and, reports weakness and inadequacies in them
b. It acts as a moral check on the employees from committing defalcations or embezzlement.
c. It safeguards the financial interest of persons who are not associated with the management of the entity, whether they are partners or
shareholders
d. It has no assurance

The following are inherent limitations of audit, except:

Select one:
a. Non-detection of errors and/or frauds
b. Dependence on explanation by others
c. Dependence on opinions of others
d. It acts as a moral check on the employees from committing defalcations or embezzlement.