The auditor has considerable responsibility for notifying users as to whether or not the statements are properly stated. Considering the objective of PSA 200, this imposes upon the auditor a duty to   Select one: a. be an insurer of the fairness in the statements. b. provide reasonable assurance that material misstatements will be detected. c. be equally responsible with management for the preparation of the financial statements. d. be a guarantor of the fairness in the statements.

Which item regarding an Emphasis of Matter paragraph is true? a. The auditor will use the E of M to restrict distribution of the audit report. b. The auditor will use the E of M when the client has corrected an error in the previous financial statements. c. An E of M will be used when a material error exists in the current financial statements. d. The E of M paragraph is usually located immediately before the opinion paragraph. e. The E of M paragraph would be used to discuss a client's change in the method to estimate bad debts.

2. To express an opinion on financial statements, the auditor obtains reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error. Select one:TrueFalse

The reporting principle requires auditors to express their opinion through the issuance of a written report. Required: a. What is the purpose of the. auditors' opinion and report? b. What are the major sections in the auditors' report on the examination of an issuer? What are the major contents of each of these sections? c. What are the four types of opinions that auditors can issue? d . How does the concept of materiality influence the auditors' report?

In the assessment of an audit, what are the primary issues for consideration?Select one:   a. All of the others are correct. b. The auditor must be perceived as independent. c. The auditor must be deemed competent. d. The auditor must be perceived as objective.

A moral or legal obligation to ensure the safety or well-being of others Could be defined as duty of care. An auditor's duty of care to a client would most likely be breached if the auditor failed to:  Select one: a.comply with the Cooperation Act 2001 & all relevant auditing standards.  b. Resolve their staffing issues. c. conduct the audit for the cheapest price. d.Prevent & detect earnings of management.

What do auditors consider when determining the extent to which the internal auditors’ work will affect the auditors’ procedures?     A. The materiality of the account balance or transaction, the risk of material misstatement of the assertions, and the amount of subjectivity involved in evaluating the evidence gathered.   B. Only the risk of material misstatement of the assertions related to the account balance, transaction, or disclosure and the amount of subjectivity involved in evaluating evidence gathered.   C. Only the amount of subjectivity involved in evaluating the evidence gathered.   D. Only the materiality of the account balance or transaction and the risk of material misstatement of the assertions.

The auditor should consider audit risk when planning and performing an audit of financial statements. Audit risk should also be considered together in determining the nature, timing, and extent of auditing procedures and in evaluating the results of those procedures. Required: a. Define audit risk. b. Describe the components of audit risk (e.g., inherent risk, control risk, and detection risk). c. Explain how these components are interrelated. (AICPA, adapted)

b) Which of the following statements regarding additional information that is included in a document containing audited financial statements is not true?   Group of answer choices 1: Additional information can be subject to certain limited procedures by the auditor. 2: Additional information can be the subject of another information opinion. 3: Additional information can be the subject of an in-relation-to opinion. 4: Additional information can be subject to a limited review by the auditor.

Auditors must use their professional judgment_ O to distinguish if a misstatement or scope limitation is just material or pervasively material O to distinguish if a misstatement or scope limitation is just immaterial or pervasively material O to determine if the firm has the ability to pay the auditor for services rendered O in selecting the client's audit committee