CA Inter P5 · Chapter 1 · Question 1 of 10
Under SA 200, the overall objective of the auditor in an audit of financial statements is to:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to report in accordance with the auditor's findings
Explanation
SA 200 frames the auditor's overall objective around reasonable assurance on the financial statements as a whole and reporting on the findings. Absolute assurance is not attainable because of the inherent limitations of an audit. Prevention and detection of fraud is primarily the responsibility of management and those charged with governance, and an audit does not verify every transaction.
More Nature, Objective and Scope of Audit MCQs
- 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…
- Q5Professional skepticism, as required by SA 200, includes:
- Q6Which of the following statements about professional judgment in an audit is correct?
- Q7The managing director of Sitara Fabrics Ltd. states at a board meeting: 'Since our accounts are audited, any error in them is the…