Reviewing judgments made by management in

preparing financial statements

Evaluating accounting systems and internal

controls

Determining the suitability and life of

buildings

Ensuring compliance with statutory requirements

To provide absolute assurance about the

financial statements

To detect all instances of fraud in the

financial statements

To prepare the financial statements on behalf of

the client as per applicable financial reporting framework

To obtain reasonable assurance about whether the

financial statements are free from material misstatement

Fraud

None of the above

Error

Both fraud and error

Auditors lack the tools to provide absolute

assurance

Audits are informal processes

Auditors use sampling methods and there are

inherent limitations such as fraud or collusion

Auditors only review financial statements

superficially

Avoiding situations that may lead to perceived

bias

Ensuring compliance with tax laws

Being genuinely unbiased and objective in

professional judgment

Relying on management’s representations related

to financial statements