Chapter 2 (basic concepts of audit)

Question 1

what parts of a company’s annual report are covered by an audit report?

Answer 1

chap 2 LO:1

Question 2

discuss the concept of true and fair view in relation to the financial statements.

Answer 2

chap 2 LO:2

Question 3

describe applicable financial reporting framework

Answer 3

chap 2 LO:2

Question 4

Briefly describe the managements responsibilities relating to the financial statements

Answer 4

both general and specific: chap 2 LO:4

Question 5

describe overall objective of auditor

Answer 5

responsibilities of auditor chap 2 LO:5

Question 6

what is the expectation gap and how could it be removed or reduced by the auditing profession?

Answer 6

Chap 2 LO:6

Question 7

briefly discuss the concept of professional skepticism

Answer 7

Chap 2 LO:7

Question 8

describe the professional judgment

Answer 8

Chap 2 LO:7

Question 9

discuss the functions of of IFAC

Answer 9

Chap 2 LO:8

Question 10

list the boards of IFAC

Answer 10

Chap 2 LO:8

Question 11

explain briefly the role of international auditing and assurance standards board

Answer 11

Chap 2 LO:8 (IAASB)

Question 12

how an ISA be developed

Answer 12

Chap 2 LO:9

Question 13

describe the authority of ISA in Pakistan

Answer 13

Chap 2 LO:9

Question 14

what are exceptions to follow requirements of ISA

Answer 14

Chap 2 LO:9