pathfinder - The Institute of Chartered Accountants of Nigeria

PATHFINDER16. Due professional care requiresA. a critical review of work done at every level of supervision.B. the examination of all corroborating evidence available.C. the exercise of error free judgment.D. a study and review of the internal controls.E. exercising professional care as judged by peer reviewers.17. Which of the following best describes the reason why an independent auditorreports on financial statements?A. A management fraud may exist and is more likely to bedetected by independent auditorsB. Different interests may exist between the company preparing thestatements and the persons using the statementsC. A misstatement of account balances may exist and is generally correctedas the result of the independent auditor‟s workD. Poorly designed internal control may existE. Comply with the generally accepted standards of field work18. The independent audit is important to users of financial statements because itA. determines the future stewardship of the management of the companywhose financial statements are audited.B. measures financial and business data in the financial statements.C. communicates financial and business data in the financial statements.D. involves the objective examination of, and reporting on financialstatements prepared by management.E. reports on the accuracy of all information in the financial statements.INTERMEDIATE EXAMINATION - NOVEMBER 201034