Select the appropriate option and rewrite the following sentences: 1. Financial statements need to be prepared in accordance with: (a) Relevant statutory requirements (b) Accountin... Select the appropriate option and rewrite the following sentences: 1. Financial statements need to be prepared in accordance with: (a) Relevant statutory requirements (b) Accounting standards issued by the Institute of Chartered Accountants of India (c) Guidance Notes issued by the Institute of Chartered Accountants of India (d) All the above 2. Objective of an audit of financial statements is to enable the auditor to express an opinion on: (a) Whether the financial statements are prepared in accordance with the system of entry book-keeping (b) Whether the financial statements are prepared in accordance with accounting policies laid down by the management (c) Whether the financial statements are prepared in accordance with an identified financial reporting framework (d) Whether the financial statements are prepared in accordance with the provisions of the Income-tax Act 3. If the financial statements are prepared as per the financial reporting framework, the auditor gives an opinion that the financial statements: (a) Are true and correct (b) Are correct and fair (c) Give a true and fair view (d) Are reliable 4. The term “General Purpose Financial Statements” never includes: (a) A cash flow statement (b) Statements and explanatory notes which form part thereof (c) Statement by chairman (d) Supplementary schedules and information based on such statements.
Understand the Problem
The question is asking to select the appropriate options and rewrite sentences related to financial statements and concepts regarding audits, which implies an understanding of accounting principles and practices.
Answer
1. (d) All the above. 2. (c) Whether the financial statements are prepared in accordance with an identified financial reporting framework. 3. (c) Give a true and fair view. 4. (c) Statement by chairman.
- Financial statements need to be prepared in accordance with: (d) All the above.
- Objective of an audit of financial statements is to enable the auditor to express an opinion on: (c) Whether the financial statements are prepared in accordance with an identified financial reporting framework.
- If the financial statements are prepared as per the financial reporting framework, the auditor gives an opinion that the financial statements: (c) Give a true and fair view.
- The term “General Purpose Financial Statements” never includes: (c) Statement by chairman.
Answer for screen readers
- Financial statements need to be prepared in accordance with: (d) All the above.
- Objective of an audit of financial statements is to enable the auditor to express an opinion on: (c) Whether the financial statements are prepared in accordance with an identified financial reporting framework.
- If the financial statements are prepared as per the financial reporting framework, the auditor gives an opinion that the financial statements: (c) Give a true and fair view.
- The term “General Purpose Financial Statements” never includes: (c) Statement by chairman.
More Information
The answers are based on relevant statutory requirements, accounting standards issued by the ICAI, and guidance notes issued by the ICAI.
Tips
Make sure to include all relevant standards and requirements when preparing financial statements.
Sources
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