What is meant by negative assurance?

A. The auditor cannot give an opinion due to lack of evidence.
B. The client’s financial statements were found to be materially misstated.
C. The auditor could not conduct any tests due to lack of controls.
D. The auditor did not find anything to indicate that a material misstatement exists.

Related Mcqs:

What sort of assurance is provided in a review engagement?
A. Positive assurance B. Negative assurance C. High level of assurance D. No assurance...
What is meant by the expression ‘expectation gap’?
A. The gap between how the directors of a company perform their duties and how the shareholders expect them to perform B. The gap between how the directors of a company perform their duties and how the general public expects them to perform C. The gap between the public perception of the role of company...
____________ is a systematic examination of the books and records or a business?
A. Auditing B. Vouching C. Verification D. Checking...
Which of the following is not true about opinion on financial statements?
A. The auditor should express an opinion on financial statements. B. His opinion is no guarantee to future viability of business C. He is responsible for detection and prevention of frauds and errors in financial statements D. He should examine whether recognised accounting principle have been consistently...
Which of the following is NOT an accepted method of selection in sampling?
A. Systematic selection B. Pervasive selection C. Random selection D. Haphazard selection...
Window dressing implies_______________?
A. Curtailment of expenses B. Checking of Wastages C. Under valuation of assets D. Over Valuation of assets...
Which of the following statements is, generally, correct about the reliability of audit evidence?
A. To be reliable, evidence should conclusive rather than persuasive B. Effective internal control system provides reliable audit evidence C. Evidence obtained from outside sources routed through the client D. All are correct....
The current file of the auditor’s working papers, generally, should include____________?
A. A flowchart of the internal controls B. Organisation charts C. A copy of financial statements D. Copies of bond and debentures...
The auditor has serious concern about the going concern of the company. It is dependent on company’s obtaining a working capital loan from a bank which has been applied for. The management of the company has made full disclosure of these facts in the notes to the balance sheet. The auditor is satisfied with the level of disclosure. He should issue___________?
A. unqualified opinion B. unqualified opinion with reference to notes to the accounts C. qualified opinion D. disclaimer of opinion...
Audit fess is a part of__________.
A. works on cost. B. selling overhead. C. distribution overhead. D. administration overhead Submitted by: ALIYA NAWAZ...