test 1 - MC

Question 1

Who is responsible for the preparation of the financial statements

a.NONE OF THESE

b.AUDITORS

c.MANAGEMENT

d.MANAGEMENT AND AUDITORS

Answer 1

MANAGEMENT

Question 2

Who has to make sure their work is in accordance with IFRS

a. ACCOUNTANTS

b.IFRS IS NOT USED

c.AUDITORS

d.AUDITORS AND ACCOUNTANTS

Answer 2

ACCOUNTANTS

Question 3

Which financial statement is signed

a.NO FINANCIAL STATEMENT IS SIGNED

b.STATEMENT OF FINANCIAL POSITION

c.CASH FLOWS STATEMENT

d.INCOME STATEMENT

Answer 3

STATEMENT OF FINANCIAL POSITION

Question 4

Who has to fulfill their responsibilities in accordance with IESBA

a.AUDITORS

b.MANAGEMENT

c.IESBA IS NOT USED

d.AUDITORS AND MANAGEMENT

Answer 4

AUDITORS

Question 5

Who signs one of the financial statements

a. AUDIT FIRM PARTNER

b.MEMBER OF THE BOARD OF DIRECTORS

c.CHIEF ACCOUNTANT

d.NONE OF THESE

Answer 5

MEMBER OF THE BOARD OF DIRECTORS

Question 6

Which IFRS has to do with financial instruments

a.IFRS 12
b.IFRS 16
c.IFRS 15
d.IFRS 9

Answer 6

IFRS 9

Question 7

Which IFRS has to do with Leases

a.IFRS 15
b.IFRS 16
c.IFRS 12
d.IFRS 9

Answer 7

IFRS 16

Question 8

Which IFRS has to do with Revenue Recognition

a.IFRS 9
b.IFRS 15
c.IFRS 12
d.IFRS 16

Answer 8

IFRS 15

Question 9

Which ISA has to do with Modified Auditor’s Opinion

a.ISA 700
b.ISA 200
c.ISA 705
d.ISA 240

Answer 9

ISA 705

Question 10

If the audited business has not made provision for doubtful accounts but on accounts becoming bad do a direct write off and it is not considered materially pervasive which opinion would probably be rendered

a.ADVERSE
b.QUALIFIED
c.UNMODIFIED
d.DISCLAIMER

Answer 10

QUALIFIED

Question 11

If bank accounts are not reconciled and the almost all transactions flow through the bank accounts which opinion would probably be rendered

a.QUALIFIED
b.UNMODIFIED
c.ADVERSE
d.DISCLAIMER

Answer 11

ADVERSE

Question 12

If the auditor has examined the records but do not believe they have sufficient and appropriate audit evidence which audit opinion would probably be rendered

a.QUALIFIED
b.ADVERSE
c.UNMODIFIED
d.DISCLAIMER

Answer 12

DISCLAIMER

Question 13

Where can you usually find the auditors opinion

a. second paragraph begin of auditors report

b.second to last paragraph end of auditor’s report

c. first paragraph begin of auditor’s report

d. Last paragraph end of auditor’s report

Answer 13

second paragraph begin of auditors report

Question 14

Who prepares the MD&A

a. INTERNAL AUDITOR
b. MANAGEMENT
c. MEMBER BOARD OF DIRECTORS
d. EXTERNAL AUDITOR

Answer 14

MANAGEMENT

Question 15

Auditor’s responsibilities does not include which of the following

a. Form an opinion based on conclusion of audit evidence

b. All of these are auditor’s responsibilities

c. Identify and assess risks of misstatements

d. Obtain sufficient and appropriate audit evidence

Answer 15

Identify and assess risks of misstatements

Question 16

Which of the following best describes Professional skepticism

a. An attitude that management is guilty and conducting fraud

b. An attitude that management is innocent until proven guilty

c. The application of relevant training, knowledge and experience,

d. An attitude that includes a questioning mind

Answer 16

An attitude that includes a questioning mind