Cima C02 Exam Question No 36

Question No 36:

What is the principal duty of an external auditor?

A. To confirm that financial statements give fair presentation.
B. To ensure that a company’s systems and controls are adequate to ensure the reliability of the accounting records.
C. To prevent fraud and errors.
D. To provide a report to the shareholders.

Answer: A

Cima C02 Exam Question No 35

Question No 35:

Which one of the following statements most closely expresses the meaning of “true and fair presentation”?

A. There is only one true and fair presentation of a company’s financial statements.
B. True and fair presentation is determined by compliance with accounting standards.
C. True and fair presentation is determined by compliance with company law.
D. True and fair presentation is largely determined by reference to generally accepted accounting practice.

Answer: A

Cima C02 Exam Question No 34

Question No 34:

What is the fundamental objective of an external audit of a limited company?

A. Give advice to shareholders.
B. Detect fraud and errors.
C. Measure the performance and financial position of a company.
D. Provide an opinion on the financial statements.

Answer: D