SOA PKF SA - 700(R), 701, 705(R), 706(R), 720(R), 570(R). 20

The absence of any reference to a material uncertainty about the entity’s ability to continue as a going concern in an auditor’s report means a guarantee as to the entity’s ability to continue as a going concern

• True
• False

An entity’s inability to pay creditors on due dates or inability to comply with the terms of loan agreements may signify that a material uncertainty about the entity’s ability to continue as a going concern exists

• True
• False

If adequate disclosure about the material uncertainty is made in the financial statements, the auditor shall express _______.

• An unmodified opinion
• A modified opinion

In evaluating management’s assessment of the entity’s ability to continue as a going concern, the auditor shall cover the same period as that used by management to make its assessment. Such period shall be:

• Less than twelve months from the date of financial statements
• More than twelve months from the date of financial statements
• At least twelve months from the date of financial statements
• Equal to twelve months from the date of financial statements

While performing analysis of the cash flow forecast prepared by the entity, the auditor should:

• Evaluate reliability of underlying data generated to prepare the forecast
• Determine whether there is adequate support for assumptions underlying forecast
• Both (a) and (b) above

Audit report on general purpose financial statements of a company is addressed to:

• Those charged with governance
• Management
• Board of Directors
• Members of the company

What terms can be used to express an unmodified opinion on financial statements prepared in accordance with a fair presentation framework? a. Present fairly, in all material respects b. With the foregoing explanation c. Give a true and fair view d. Subject to

• a,b,c
• b,c,d
• a & c
• a& d

SA 701 applies to audits of quarterly financial statements under SEBI LODR Regulations 2015.

• True
• False

Original information about the entity is the responsibility of the entity’s management and those charged with governance.

• True
• False

Purpose of communicating key audit matters is to _____________ the communicative value of the auditor’s report.

• Increase
• Enhance