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4) The purpose of an audit is to provide an opinion on the financial statements, with an underlying premise that management i
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Answer #1

4. True.

As per ISA 200, the auditor is responsible to give an opinion on the financial statement so that it gives a true and fair view of the financial position. The management of the company is responsible for preparation of the financial statement as per applicable financial reporting framework and it is also their duty to give unrestricted access to the auditor to all the necessary books, papers and documents necessary for the auditor to give an opinion.

5. True

As per ISA 200, professional skepticism refers to questioning attitude of the auditor so that it enables him to look for unusual evidences which might help him in giving a true and fair view of the financial position. When an auditor keeps a questioning mind he does not overlook any area of importance.

NOTE: ISA refers to INTERNATIONAL STANDARD ON AUDITING

NOTE: ISA 200 - "OVERALL OBJECTIVES OF THE INDEPENDENT AUDITOR AND THE CONDUCT OF AN AUDIT IN ACCORDANCE WITH INTERNATIONAL STANDARDS ON AUDITING"

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