ISA 210, Agreeing the terms of Audit Engagements MCQs

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ISA 210 Agreeing the Terms of Audit Engagements and the Code of Ethics and Conduct provides guidance to the professional accountant when accepting new work
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ISA 210, Agreeing the terms of Audit Engagements

ISA 210 Agreeing the Terms of Audit Engagements and the Code of Ethics and Conduct provides guidance to the professional accountant when accepting new work. Here on MCQs.club we have prepared easy Multiple-Choice Questions (MCQs) on ISA 210. These MCQ fully cover ISA 210 IFAC MCQs, ISA 210 Summary MCQs. It a basis for conclusions for SA 210 and These MCQ are useful for Professional accountants, Competitive exams and Business management exams.

  1. ISA 210 Agreeing the Terms of Audit Engagements and the Code of Ethics and Conduct provides guidance to the professional accountant when accepting new work.
    1. The above statement is correct
    2. The above statement is incorrect
  1. Before accepting (or continuing with) an engagement the auditor must:
    1. establish whether the preconditions for an audit are present
    2. establish that there is a common understanding between the auditor and management and, where appropriate, those charged with governance.
    3. Both A&B
    4. None
  1. The preconditions for an audit are that management acknowledges and understands its responsibility for:
    1. Preparation of the financial statements in accordance with the applicable financial reporting framework.
    2. Internal control necessary for the financial statements to give a true and fair view.
    3. Providing the auditor with access to all relevant information and explanations.
    4. All of the above
  1. To establish if the preconditions for an audit are present ISA 210 requires the auditor to:
    1. establish if the financial reporting framework to be used in the preparation of the financial statements is acceptable, for example IFRS or IPSAS
    2. obtain the agreement of management that it acknowledges and understands its responsibilities
    3. Both A&B
    4. None
  1. Unless required by law or regulation to do so, the auditor shall not accept the proposed audit engagement where:
    1. a limitation on scope is imposed by management such that the auditor would be unable to express an opinion on the financial statements
    2. the financial reporting framework to be used in the preparation of the financial statements is unacceptable
    3. management do not agree to its responsibilities (the “premise”) stated in the preconditions.
    4. All of the above
  1. Identify which of the following are Examples of Scope Limitation is imposed by management.
    1. When auditors are appointed after year end and they are unable to do physical inventory count at year end
    2. When the management does not provide the auditors with the contact details of debtors to confirm the account head “Accounts Receivable”
    3. Both A&B
    4. None
  1. The engagement letter specifies the nature of the contract between the firm and client. Its purpose is to:
    1. Minimise the risk of any misunderstanding between the practitioner and client
    2. Confirm acceptance of the engagement
    3. Set out the terms and conditions of the engagement.
    4. All of the above
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