01.“Statutory audit is essential for the sole trader-ship and register partnership financial accounts and statement”.(CMA-May-2023)
Ans: False. Statutory audit is essential for the companies registered under the companies act 1994
02.“Code of ethics must be followed by all professional Accountants and for audit is pronounced by law ministry and professional Institution”. (CMA-May-2023)
Ans:
False:Code of ethics must be followed by all professional accountants and for audit, is pronounced by the professional institutions (e.g., IFAC)
03.“Audit working papers are the written records kept by the auditors, of the audit evidences accumulated in the course of audit, the methods and procedures followed and conclusion reached at the end” (CMA-May-2023)
Ans: True.
04. “Internal audit have no statutory responsibility and their work is comprehensive” (CMA-May-2023)
Ans:True.
05.“A disclaimer opinion is given when auditor concludes that Financial Statement is not true and fair” (CMA-May-2023)
Ans:
False. A disclaimer opinion is a statement made by an auditor that no opinion is being given regarding the financial statements.
06.Process Work ensures the effectiveness of controls related to interest Ans: False, Performance.
07.Board of Directors appoint the statutory auditor in Board Meeting. ”.(CMA-september-2023)
Ans: False, Shareholder in AGM
08.Audit Charter govern the authority and responsibilities of internal audit function.
Ans: True.
09.Auditor are responsible for identifying fraud in Financial Statements. ”.(CMA-september-2023)
Ans: False, Management
10.Working papers support auditor’s opinion regarding underlying financial Statements”.(CMA-september-2023)
Ans: True.
11.Result of substantive testing will be the basis for planning of compliance or control testing. ”.(CMA-september-2022)
Ans:
False:Result of compliance testing will form the basis for planning of substantive testing.
12.A lower level of evidence will be obtained for a limited assurance engagement”.(CMA-september-2022)
Ans:True
13.Reasonable assurance means a moderate but qualified level of assurance”.(CMA-september-2022)
Ans:
False:Reasonable assurance means a high but not absolute level of assurance
14.Physical verification of fixed asset is the primary responsibility of the auditor”(CMA-september-2022)
Ans:
False: Physical verification of fixed asset is the primary responsibility of management
15.The auditor shall obtain confirmation from those charged with governance whether they believe significant assumptions used in making accounting estimates are reasonable”.(CMA-september-2022)
Ans:
False:The auditor shall obtain written representations from management &, where appropriate, those charged with governance whether they believe significant assumptions used in making accounting estimates are reasonable.
16.Question:-In reasonable assurance engagement a negative conclusion is drawn-
Ans:
False: A positive opining is given in a reasonable assurance engagement
17.Question:-An audit is a limited assurance engagement
Ans:False:It is a reasonable assurance engagement
18.Question:-Auditor have a duty to detect frauds which have a material impact on the financial statements
Ans:True
19.Question:-Auditing is the regulated by the GOVT in Bangladesh
Ans:False:It is regulated by the the ICAB
20.Question:-The ICAB,s practice assurance scheme is primarily disciplinary
Ans:
False :Although disciplinary action may be taken as a result of a review if required21.Question:-If the Client refuses the existing auditor permission to communicate with the prospective auditor,the prospective auditor should decline the appointment
Ans:
False: Not necessarily ,although this might be an indicator that the auditor should have concerns about director integrity
22.Question:-If the Client request s that an auditor reduce the level of assurance offered on a statutory audit an auditor ma agree and reduce procedures accordingly
Ans:False: A statutory audit provides a reasonable level of assurance
23.Question:-Analytical procedures should be carried out by an audit Junior
Ans:
False: As experience & understanding are required to carry out analytical procedures properly.24.Question:-It is appropriate to rely solely on controls testing in relation to the existence of inventory
Ans:False:
25.Question:-The auditor must always carry out substantive procedures
Ans:True:
26.Question:-External auditor will not rely on the work of an expert who works for the entity
Ans:False:
27.Question:-Group engagement teams may refer to work of component auditors in their report on the group of financial statements
Ans:False:
28.Question:-It is appropriate to use a checklist to determine whether the financial statements comply with the companies ACT
Ans:True
29.Question:-opening balances need only be checked in new auditor situation
Ans:False
30.Question:-A report to those charged with governance should be in writing
31.Assurance services are required by law
32.Reasonable assurance is high level of assurance
33.An audit firm must not accept an engagement if the client is not previously known to them
34.An engagement letter is only ever sent to a client before the first audit
35.An engagement letter defined the scope of the engagement
36.The Audit team is required to discuss the susceptibility of the financial statements to material misstatements
37.If control & Inherent risk are assessed as sufficiently low substantive procedures can be abandoned completely
38.Test of controls are tests designed to give evidence whether the control in a company are operating effectively or not
39.Analytical procedures are a type of substantive procedures
40.It is possible to buy in an internal audit service from an external organization
Ans:True
41.As objectivity is key issue for internal auditor,they are likely to routinely be involve in operational activities
42. Written representation include a statement that management has provided the auditor with all relevant information
43. A Written representation are in the form of a presentation letter addressed to the shareholders
Ans:False
44. Principle of integrity can be defined as the accountant not allowing bias ,conflict of interest or indue influence of others to override his choice of action
Ans:False
45.
Professional accountant should be technically up to date so as to give appropriate advise to the client
Ans:False
45. The ICAB Code implements the IFAC Code
Ans:True
46. The IESBA Code of Ethics applies only to statutory audits
Ans:False
47. The ethical conflict should never be referred out side of the assurance firm for advice in relation to resolving that conflict
Ans:False
48. when an accountant is faced with conflict between professional duty and duty to his employer ,he should always seek legal advise
Ans:False
49. The principle of confidentiality is the duty to keep client affairs secret in all circumstances.
Ans:False