ISA 200 Flashcards
Overall Objectives of the Independent Auditor (25 cards)
What does ISA 200 stand for?
International Standard on Auditing 200
True or False: ISA 200 provides the overall objectives of the independent auditor.
True
Fill in the blank: ISA 200 establishes the __________ of an audit.
standards
What is the primary objective of an audit according to ISA 200?
To obtain reasonable assurance that the financial statements are free from material misstatement.
Multiple Choice: Which of the following is NOT a component of ISA 200? A) Ethical requirements B) Audit risk C) Financial reporting framework D) Audit procedures
D) Audit procedures
According to ISA 200, what is meant by ‘reasonable assurance’?
A high, but not absolute, level of assurance that the financial statements are free from material misstatement.
What role does professional skepticism play in ISA 200?
It is essential in the audit process to evaluate evidence and assess the appropriateness of audit conclusions.
True or False: ISA 200 applies to all audits of financial statements.
True
What is the definition of ‘material misstatement’ as per ISA 200?
A misstatement that could influence the economic decisions of users taken on the basis of the financial statements.
Which standard must auditors comply with in addition to ISA 200?
The ethical requirements relevant to the audit.
Fill in the blank: ISA 200 emphasizes the importance of understanding the __________ of the entity being audited.
entity and its environment
What is the significance of ‘audit risk’ in ISA 200?
It refers to the risk that the auditor expresses an inappropriate audit opinion when the financial statements are materially misstated.
Multiple Choice: Which of the following is a key principle outlined in ISA 200? A) Independence B) Materiality C) Both A and B D) None of the above
C) Both A and B
What does ISA 200 require auditors to do regarding internal controls?
Understand and evaluate the design and implementation of relevant internal controls.
True or False: ISA 200 allows auditors to ignore laws and regulations when conducting an audit.
False
In ISA 200, what is the auditor’s responsibility regarding fraud?
To obtain reasonable assurance that the financial statements are free from material misstatement due to fraud.
What does ISA 200 say about the auditor’s communication with those charged with governance?
The auditor should communicate significant findings, including any significant deficiencies in internal control.
Fill in the blank: According to ISA 200, the auditor should plan the audit to obtain __________.
sufficient appropriate audit evidence
What is the relationship between ISA 200 and other ISAs?
ISA 200 serves as a foundation for other International Standards on Auditing.
Multiple Choice: Which aspect is NOT considered in planning an audit according to ISA 200? A) Understanding the entity B) Determining materiality C) Client’s preferences D) Assessing audit risk
C) Client’s preferences
What is required of auditors in terms of documentation as per ISA 200?
Auditors must document the audit process, including the audit plan and any significant findings.
True or False: ISA 200 emphasizes the importance of auditor independence.
True
Fill in the blank: ISA 200 requires auditors to evaluate the __________ of the audit evidence obtained.
sufficiency and appropriateness
How many parties involved in engagement?
Three parties are involve namely auditors , tcwg/ amangement and stake holder
