CA students Sriranga and Manga were discussing on the assurance, which the auditing services provide to the users, in the form of opinion on…

CA Intermediate · Auditing and Ethics · PYQS · September 2025
CA students Sriranga and Manga were discussing on the assurance, which the auditing services provide to the users, in the form of opinion on financial statements, by means of a written report. Such an assurance lends credibility to financial statements. You are required to state some of the aspects examined by the auditor, to ensure that the financial statements which are audited are not misleading.

Suggested Answer and Working Notes:

Aspects to be examined by the auditor to ensure that the financial statements which are audited are not misleading are as under: (i) the accounts have been drawn up with reference to entries in the books of account. (ii) the entries in the books of account are adequately supported by sufficient and appropriate evidence. (iii) none of the entries in the books of account has been omitted in the process of compilation. (iv) the information conveyed by the statements is clear and unambiguous. (v) the financial statement amounts are properly classified, described and disclosed in conformity with accounting standards; and (vi) the statement of accounts presents a true and fair picture of the operational results and of the assets and liabilities.

Topics: Nature, Objective and Scope of Audit

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