Statutory Audit

What is the primary purpose of a statutory audit?

• To express an opinion on financial statements

• To prepare financial statements

• To ensure compliance with tax laws

• To manage company finances

What does the term 'true and fair view' refer to in auditing?

• To express reasonable assurance

• A type of audit exemption

• A subjective opinion of the auditor

• A method of financial reporting

Which of the following is a criterion for audit exemption under the Companies Act 2006?

• Turnover not more than £10.2m

• Turnover not more than £5.1m

• Total assets not more than £10.2m

• Number of employees 100 or fewer

What is required for auditors to be eligible for appointment in the UK?

• Membership in a Recognised Supervisory Body

• Experience in financial management

• Certification from the Financial Reporting Council

• Completion of a specific audit training program

What does the Financial Reporting Council (FRC) monitor?

• Tax compliance

• The accountancy profession

• Corporate governance only

• Financial statement preparation

What are ISA Standards primarily concerned with?

• Tax regulations

• International financial reporting

• Statutory audits

• Corporate governance

What is one of the overall objectives of the auditor?

• To ensure compliance with tax laws

• To manage company assets

• To obtain reasonable assurance about financial statements

• To prepare financial statements

Which of the following is NOT a requirement for auditors?

• Plan and perform audits with professional scepticism

• Comply with ethical requirements

• Exercise professional judgement

• Prepare financial statements

What does 'fair' information in auditing imply?

• It is accurate and true

• It is free from bias and discrimination

• It is based on historical data

• It is legally compliant

What is the maximum turnover for a small company to qualify for audit exemption?

• £5.1m

• £10.2m

• £15m

• £20m