16.

Significant deficiencies and material weaknesses should not be reported to the management and
those charged with governance.

ANSWER: FALSE

17. Completing the audit and audit report is the last part of the audit process.

ANSWER: TRUE

18. There is a need to review minutes of meetings because significant transactions are recorded in
there.

ANSWER: TRUE

19. In the audit process there is no need to check the going concern assumption of the entity.

ANSWER: FALSE

20. Review of subsequent events should be done in the audit process because there may be events that
are significant beyond the reporting period.

ANSWER: TRUE

21. PSQC prohibits the issuance of audit report if there is no engagement quality review report.

ANSWER: TRUE

22. There are five different types of audit opinion.

ANSWER: FALSE

23. An unqualified opinion, sometimes referred to as a “clean report”, is the best possible type of report
a business can receive.

ANSWER: TRUE

24. Qualified opinion, is the type of audit opinion where auditors make a conclusion after their testing
that there is material misstatement found in the financial statements.

ANSWER: TRUE

25. Some of the contents of the audit report are opinion, basis for opinion and key audit matters.
ANSWER: TRUE