18 Questions
What caused the shares of the IT company to drop as soon as the markets opened on Monday?
Audited profits were below market expectations
Why did the uncle of the individual approach a bank for funds?
To expand his business
What did the credit officer of the bank request from the individual's uncle for considering the loan application?
Audited financial statements of past years
What did the individual think could have been a significant factor contributing to the substantial increase in direct tax collections as highlighted in the Union Budget?
Higher taxes paid by companies based on audited results
From the text, what did the individual reflect upon regarding auditors' role in the economy?
Auditors have a significant role in the economy and nation-building
Based on the information provided, why do companies pay taxes on profits shown in their audited financial statements?
To contribute to nation-building through tax payments
What is one of the reasons why an auditor cannot guarantee that financial statements are free from material misstatements?
Inherent limitations of an audit
Why might an auditor not be able to rely on information obtained in the second year of an audit?
The information may have lost its relevance over time
What could lead to the cessation of a business according to the text?
Emergence of new business models or products
Why is it mentioned that an auditor cannot reduce audit risk to zero?
Because of inherent limitations of an audit
Why is it crucial for an auditor to consider future events in their audit procedures?
To ensure that the financial statements are free from material misstatements
What impact do future events have on the ability of an entity to continue its business?
May affect it adversely
Why do diverse users rely on audited financial statements?
To gain confidence in the financial statements
What is the main reason behind the importance of auditing in the modern world?
To ensure compliance with legal and regulatory requirements
What is the primary role of auditors in the economy?
To provide credibility to financial statements
What does the scope of audit encompass?
Evaluation of the internal control system
What are the responsibilities of auditors according to the text?
To provide assurance on the reliability of financial information
What is not included in the scope of auditing?
Manipulating financial data for personal gain
Explore the nature, objective, and scope of audit as per the Institute of Chartered Accountants of India guidelines. Learn about the importance of audit results in financial markets through a real-life scenario.
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