True and False Question

5 Question
1. To support all management assertion in the financial statements, the auditor must
obtain sufficient and competent audit evidence. (true/false)
2. The second common cycle classified is payroll and personal cycle. (true/false)

3. Applicable law or regulation may required auditors to proside opinion on other

specific matters , such as the effectiveness of internal control, or the consistancy of a
seporate management report with the financial statement. (true/false)
4. The clear understanding of the business and specified account being audited will
determine recognize the assertions that deserve the most emphasis. (true/false)
5. An auditor will not be able to fullfill his responsibilities in conducting the audit
balance and evidence accumulation has a significant reletionship with the overall
audit objective. (true/false)

(5 marks)

Subjective Question
1.Give the common cycles classified.?
Answer:
a
b
c
d
e
(5 marks).
Matches Question
5 Question.

ISA 200

Audit Objective

Considered responsible to notify the financial

statement uses whether the financial statements are
properly presented.

Cycle Approach

To enchance the degree of confidence of user of the

financial statements.

Auditor

Overal objectives of the independent auditor and the

conduct of on audit in accordance with international
standart on auditing.

The most efficient way

to perform audit

Used by the auditor to keep closely related transaction

and account balance in the same segment.

By obtaining some combination of assurance for the

ending account balance and each class of transaction
in the related account.

File in the blank question.

1.The auditor is considered responsible to notify the _________________ users whether the
financial statements are property presented.
2.The common cycles classified are as follows __________________
3.An auditor will not be able to fullfill his responsibilities in condusting the audit work
without fully understanding these topics as ________________ and ___________________
has a significant relationship with the overall audit objectives.
4.The management assert that the inventory presented in the account balance does exist that
the company owns the inventory the account balance is complete and the inventory
is___________________.
5.The presentiation and disclosure assertime,management asserts that the finanial statements
are classified property and __________________ ,all required disclosures related to
inventory accounts are property includes ,accurate and clearly prensented in the financial
statements.

(5 marks)

evidence
accumulation

financial
statements

fairly presented

capital
acquisition and
repayments
cycle

audit
planning

valued
property

Objective question.

1.The objestives of on ordinary examination by the independent auditor is the expression of

an opinion on
a.The accurancy of the annual report
b.The balance shett and income statements.
c.The accurancy of the financial statement
d.The fairness of the financial statements.

2.Identify easier for the auditor has classified the cycle.

a.To enchance the degree of confidence of uses of the financial statements.
b.sales and collection cycle
c.used by the auditor to keep closely related transaction and account balance in the same
segment.
d.The related class of transaction or account balance for each cycle.

3.Objectives of an audit of financial statements as stated in

a.ISA 230
b.ISA 500
c.ISA 210
d.ISA 200

4.The main purpose of an audit is.

a.To enhance the degree of confidence of users of the financial statements.
b.To enanble the auditor to express an opinion as to wherther the financial statements.
c.To issue an audit opinion as to wherther the financial statements
d.To undertake futher work if the auditor had additional responsibilities to provide such
opinion.

5.How audit objectives support all management question in the financial statements?
a.Transaction and events have to recorded in the proper accounts.
b.Must obtain sufficient and completent audit evidence.
c.Financial and others information are disclosed at approriate amount.
d.Identify the related class of transaction or account balance.

(5 marks)