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Practice mode Auditing

When vouching cash sales, which of these documents has no relevance?

Correct answer C. Monthly statements sent to customers

Explanation

Monthly statements are sent to credit customers to show amounts they owe, so they relate to credit sales, not to cash takings recorded in daily summaries and bank deposits.

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Question 01 Auditing

A client switches from the straight-line to the written down value method of depreciation and discloses the change in a note. The effect on this year’s financial statements is immaterial, but future periods are expected to be significantly affected. What opinion should the auditor give?

Correct answer C. Unqualified opinion

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Question 03 Auditing

An auditor has serious doubts about a company’s ability to continue as a going concern because survival depends on a bank working capital loan that has been applied for but not yet granted. Management has fully disclosed these facts in the notes, and the auditor considers the disclosure adequate. What type of opinion should be issued?

Correct answer D. Unqualified opinion with reference to notes to the accounts

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