Auditing: Why a Clean Opinion Is No Guarantee
What auditors really do: standards, independence, materiality, risk, internal control, evidence, sampling, transaction cycles and audit opinions.
Auditing · 50 questions
Try 3 questions
1. Which body issues the International Standards on Auditing (ISAs)?
- The IASB
- The IMF
- The IAASB
Show the answer
Answer: The IAASB
The International Auditing and Assurance Standards Board sets auditing standards; the similarly named IASB sets accounting standards (IFRS).
2. What level of assurance does an audit of financial statements provide?
- Reasonable, but not absolute, assurance
- Absolute assurance of no errors at all
- Limited assurance, like a quick review
Show the answer
Answer: Reasonable, but not absolute, assurance
Sampling, judgment and the possibility of concealed fraud mean an audit gives a high but not absolute level of assurance.
3. Who is responsible for preparing a company's financial statements?
- The stock exchange it lists on
- The company's management
- The external audit firm
Show the answer
Answer: The company's management
Management prepares the statements and runs internal control; the auditor only expresses an opinion on them.
The whole quiz comes before your apps
BrainTok asks a few questions like these before the apps you choose open, so your screen time turns into learning. For iPhone.
Join the beta