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AA MCQs Ch1

The document outlines the instructions and structure for the Audit and Assurance examination for the Certificate in Accounting and Finance, scheduled for March 10, 2025. It includes multiple-choice questions covering key concepts such as the objectives of an audit, the role of directors, and auditor qualifications. Examinees are required to answer all eight questions using a black pen and provide answers in the designated answer script.

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Huma Bashir
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10 views3 pages

AA MCQs Ch1

The document outlines the instructions and structure for the Audit and Assurance examination for the Certificate in Accounting and Finance, scheduled for March 10, 2025. It includes multiple-choice questions covering key concepts such as the objectives of an audit, the role of directors, and auditor qualifications. Examinees are required to answer all eight questions using a black pen and provide answers in the designated answer script.

Uploaded by

Huma Bashir
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Certificate in Accounting and Finance Stage Examination

10 March 2025
3 hours –
100 marks Additional
reading time – 15
minutes

Audit and Assurance


Instructions to examinees:
(i)
Answer all EIGHT questions.
(ii)
Answer in black pen only.
(iii)
Multiple Choice Questions must be answered in answer script only.

Q.1 Select the most appropriate answer from the options available for each of the
following

Multiple Choice Questions.

i. What is the main objective of an audit?


(a) To provide absolute assurance (b) To convey an opinion on financial
statements
(c) To prepare financial statements (d) To manage company assets

ii. Who is entitled to attend any general meeting of a company?


(a) Only shareholders (b) Only directors
(c) The auditor of the company (d) Any employee of the company

iii. What does reasonable assurance mean in the context of an audit?


(a) A low level of assurance (b) A high level of assurance
(c) Absolute assurance (d) No assurance

iv. What is the role of directors in a company?


(a) To own the company (b) To manage and control the
company
(c) To audit the financial statements (d) To prepare the financial
statements

v. What is required for a person to be qualified as an auditor of a public company?


(a) Must be a chartered accountant (b) Must be a lawyer
(c) Must be a shareholder (d) Must be a director

vi. What must a company do if a member proposes a new auditor for appointment?
(a) Send a notice to the retiring auditor (b) Post the notice on its
website
(c) Notify the proposed auditor (d) Both (a) and (b)

vii. What is the time frame for the retiring auditor to make a representation in
writing before a general meeting?
(a) One day (b) Two days
(c) Three days (d) Seven days

viii. What is the primary purpose of the International Standards on Auditing


(ISAs)?
(a) To provide guidelines for financial reporting
(b) To adapt to audits of historical financial statements
(c) To ensure compliance with local laws
(d) To establish auditing standards for public companies

ix. Which of the following is NOT a right of an auditor according to the


document?
(a) Access to company books and accounts (b) Access to branch accounts
(c) To require explanations from any director (d) To appoint new directors

x. What is the consequence of appointing an auditor who is disqualified?


(a) The appointment is valid (b) The appointment is void
(c) The auditor can still serve (d) The company must hold a
new election

Answers:

i. B
ii. C
iii. B
iv. B
v. A
vi. D
vii. B
viii. B
ix. D
x. B

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