Salesmen’s summary

Daily cash sales summary

Bank statement

Monthly statements sent to customers

1, 2 and 4 only

1, 2 and 3 only

2, 3 and 4 only

1, 3 and 4 only

Adverse opinion

Unqualified report with ‘an emphasis of matter’ paragraph;

Disclaimer of opinion

Qualified opinion

Estimates of the total likely misstatement cannot be made

Estimate of the total likely misstatement is more than materially level

Estimates of the total likely misstatement is less than materiality level

Amount of known misstatement is documented in working papers

client’s unedited account balance adjusted for trends in the industry

Prior year audited balance adjusted for trends in the industry

Prior year audited balance

client’s unedited account balance

Negative assurance

No assurance

Positive assurance

High level of assurance

To satisfy doubts when questions arise about a client’s ability to continue

To reduce specific detection risk

To direct attention to potential risk areas

To help to corroborate the conclusions drawn from individual components of financial statements

The gap between the public perception of the role of company auditors and their statutory role and responsibilities

The gap between the auditors’ own perception of their duties and how they are set out in the Companies Act

The gap between how the directors of a company perform their duties and how the general public expects them to perform

The gap between how the directors of a company perform their duties and how the shareholders expect them to perform

The auditor did not find anything to indicate that a material misstatement exists.

The auditor could not conduct any tests due to lack of controls.

The auditor cannot give an opinion due to lack of evidence.

The client’s financial statements were found to be materially misstated.

All of the above

Substantive tests designed to assess control risk

Substantive tests designed to evaluate the validity of management’s representation letter

Substantive tests designed to study relationships between financial and non­financial

None of the above.

Examining the physical existence and valuation of assets.

Examining the journal and ledger

Examination of vouchers related to assets.

sales invoices

sales orders

bill of loading

purchase orders

the conclusion of statutory meeting

the conclusion of first annual general meeting

the conclusion of next annual general meeting

the date of removal

the data of AGM

earlier than the date on which the accounts are approved by the management

Both and

later than the date on which the accounts are approved in board’s meeting

Shareholders in general meeting

Shareholders in an annual general meeting

Any of the above

Board of directors in board meeting

None of the above.

Analytical procedures will not be able to detect unusual relationships

Relationship among data exist and continue in the absence of known condition to the contrary

It helps the auditor to study relationship among elements of financial information

the Central Government

the board of directors

the shareholders in the first annual General meeting

the shareholders in a general meeting

identify cases of unrecorded revenue

ensure proper disclosure in the balance sheet

Any of these

recompute accrued income on the data of balance sheet

Both and

Obtain information and explanation from the employees and officers

Obtain information and explanation

Obtain information and explanation necessary for the purpose of audit

Checking of all transactions recorded

Examination of adjusting and closing entries

Testing of accounts and records

Checking of selected number of transactions

To inspect

To hear

To investigate

To examine

Cost or Market price whichever is lower.

Market price

Cost

Cost less depreciation.

Financial information

Both (a) and (b)

None of these

Non-financial information

Government

Law

Management

Shareholders

Error of omission

Error of principle

Error of commission

Compensating error