CA Inter P5 · Chapter 1 · Question 8 of 10
A lender asks Ms. Rhea, a practising Chartered Accountant, for a report on interim financial information in which she expresses a conclusion that nothing has come to her attention that causes her to believe the information is materially misstated. This is an example of:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) A review engagement providing limited assurance expressed in negative form
Explanation
A conclusion worded as 'nothing has come to our attention' is a negatively expressed conclusion, which is characteristic of a review engagement providing limited assurance. An audit gives reasonable assurance in the form of a positive opinion. In agreed-upon procedures, only factual findings are reported and no assurance is expressed.
More Nature, Objective and Scope of Audit MCQs
- Q10After an audit conducted in accordance with the SAs, it is discovered that the accountant and an outside supplier had colluded to raise…
- Q1Under SA 200, the overall objective of the auditor in an audit of financial statements is to:
- Q2Reasonable assurance, as used in the Standards on Auditing, is best described as:
- Q3Mr. Kunal, a trainee, lists the following as inherent limitations of an audit. Which one is NOT an inherent limitation recognised by SA 200?
- Q4Kamya Traders Ltd. asks its auditor to skip confirming a large receivable from an overseas customer because obtaining the reply would take…