Evaluating accounting systems and internal

controls

Ensuring compliance with statutory requirements

Determining the suitability and life of

buildings

Reviewing judgments made by management in

preparing financial statements

To prepare the financial statements on behalf of

the client as per applicable financial reporting framework

To detect all instances of fraud in the

financial statements

To obtain reasonable assurance about whether the

financial statements are free from material misstatement

To provide absolute assurance about the

financial statements

None of the above

Fraud

Error

Both fraud and error

Auditors only review financial statements

superficially

Audits are informal processes

Auditors lack the tools to provide absolute

assurance

Auditors use sampling methods and there are

inherent limitations such as fraud or collusion

Being genuinely unbiased and objective in

professional judgment

Ensuring compliance with tax laws

Avoiding situations that may lead to perceived

bias

Relying on management’s representations related

to financial statements