Question
The risk that the auditor expresses an inappropriate
audit opinion when the financial statements are materially misstated is known as:Solution
Audit Risk is the risk that the auditor expresses an inappropriate audit opinion when the financial statements are materially misstated. It is a function of the risks of material misstatement (Inherent and Control Risk) and Detection Risk
An audit engagement letter is primarily issued to:
According to SA 240, which of the following is TRUE regarding auditor’s responsibility in detecting fraud?
A statutory auditor of a listed company evaluates whether the going concern assumption holds. He observes continuous losses, negative net worth, and pen...
An auditor notices that a bank’s internal controls over loan approvals are weak, but substantive testing of balances shows no material misstatements. ...
As per the Companies Act, 2013, which of the following is not a disqualification for an auditor of a company?
Late-year reinsurance treaties significantly reduce reported loss ratio. Which step is most relevant to fraud risk of “window dressing”?
Which of the following provides the most reliable audit evidence?
An auditor finds material misstatements due to fraud but the management refuses to take corrective action. What should be the auditor’s next step?
An auditor's sample for test of controls is least likely to be designed to:
Which of the following financial statements shows a company's retained earnings over time?
