CA Inter P5 · Chapter 7 · Question 12 of 12
Under SA 520, analytical procedures performed near the end of the audit are designed to:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Assist the auditor in forming an overall conclusion as to whether the financial statements are consistent with the auditor's understanding of the entity
Explanation
SA 520 requires the auditor to design and perform analytical procedures near the end of the audit that assist in forming an overall conclusion on whether the financial statements are consistent with the auditor's understanding. If they identify a previously unrecognised risk, the auditor revises the risk assessment and planned procedures.
More Completion and Review MCQs
- Q2A fire destroyed a warehouse of Ojasvi Furnishings Ltd. on 20 April, after the 31 March year-end and before the financial statements were…
- Q3After the date of the auditor's report but before the financial statements are issued, the auditor of Ira Cosmetics Ltd. becomes aware of…
- Q4Which of the following is NOT ordinarily an event or condition that may cast significant doubt on an entity's ability to continue as a…
- Q5The auditor of Ruhan Airlines Ltd. concludes that the use of the going concern basis is appropriate but a material uncertainty exists, and…
- Q6In the case of Ruhan Airlines Ltd., suppose instead that a material uncertainty about going concern exists but management refuses to…