Quiz
MCQ3
Dieses Quiz hat ein Zeitlimit und öffnet sich deshalb im gewohnten Player.
Fragen in diesem Quiz (30)
1Which of the following is not one of the major categories of auditor's services?
- AAssurance engagements dealing with subject matters other than historical financial information
- BRelated service engagements
- CCompilation engagement
- DThe audit or review of historical financial information
2Planning means developing a general strategy and a detailed approach for the expected:
- AAudit opinion and reports to regulators
- BReport to the audit committee
- CAudit working papers' documentation
- DNature, timing and extent of the audit
3Materiality and risk are_________ related.
- AInversely
- BDirectly
- CEqually
- DNone of the above
4Financial involvement with a client will affect independence and may lead a reasonable observer to conclude that independence has been impaired. Which of the following is not a form of financial involvement with a client?
- ALoans to or from the client
- BFinancial interest resulting from being an administrator of any trust with a financial interest in the client
- CFinancial interest in a joint venture with a client
- DFees paid for audit engagement
5If an auditor believes the financial statements of a client are not fairly presented then the auditor should:
- ANotify users through an auditor report
- BReport the findings to the government
- CNotify the external users by advertising its findings
- DAll of the above
6_____________ uses comparison and relationship to assess whether account balances or other data appear reasonable.
- ATest of details
- BInternal details
- CAnalytical procedures
- DWalk through tests
7In evaluating engagement risks, the auditor should be aware of items such as:
- AThe client's previous year's profits
- BThe client's method of financing growth
- CThe client's liquidity position
- DAll of the above
8___________ smoothing is a form of earning management in which revenues and expenses are shifted between periods to reduce fluctuations in earnings.
- AExpense
- BEquity
- CRevenue
- DIncome
9Fraudulent financial reporting may contribute to:
- AExternal Performance Pressures
- BLack of Segregation of Duties
- CInternal Performance Pressures
- DAll of the above
10If an auditor discovers fraud, an auditor should:
- AConduct further investigations
- BApproach the appropriate level of management
- CConsider withdrawing from the audit if the fraud is significant
- DAll of the above
11The following stages comprise a typical money laundering process. What is the right sequence of the process ?
Creating layers of financial transactions
Breaking up large amounts of cash into smaller sums and placing them into the financial system
Integrating the money into the economic system as if it is "clean" and comes from legitimate sources- A1,2 and 3
- B1, 3 and 2
- C2, 1 and 3
- D3, 1 and 2
12Financial involvement with a client will affect independence and may lead a reasonable observer to conclude that independence has been impaired. Which of the following is not a form of financial involvement with a client?
- ALoans to or from the client
- BFees paid for audit engagement
- CFinancial interest resulting from being an administrator of any trust with a financial interest in the client
- DFinancial interest in a joint venture with a client
13An auditor makes inquiries of inventory control and sales personnel concerning possible obsolete or slow moving inventory to verify:
- ARights and obligations
- BValuation
- COccurrence
- DExistence
14Which of the following is not correct about independence of mind?
- AIt allows an individual to act with integrity
- BIt is the exercise of objectivity and professional scepticism
- CIt permits the provision of an opinion without being affected by influences that compromise professional judgment
- DIt is the state of mind that creates confidence in the auditor
15The auditor with the responsibility for reporting is:
- AThe external auditor
- BThe group auditor
- CThe internal auditor
- DThe other auditor
16The terms of the engagement include consideration of what is to be done (the objective, scope and report of the audit), by whom and:
- AWhat is the estimated period of time for the audit
- BWhat employees will participate in the audit
- CWhat experience the auditors have
- DFor how much
17All of the following are audit procedures in the audit of Accounts Payable and Accruals except:
- AReview liabilities recorded after the end of the period and review subsequent cash payments
- BValue inventory
- CVouch claims for credit from suppliers (e.g. receivables from suppliers) to supporting documents
- DReview classification and description of accounts (e.g. debit balance, current/non-current trade, related parties)
18Which of the following standards are not issued by the International Auditing and Assurance Standards Board?
- AInternational Standards on Quality Control
- BInternational Auditing Practice Statements
- CInternational Standard on Assurance Engagements
- DInternational Financial Reporting Standards
19The standards given in 'Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement', (ISA 315) emphasise:
- AReports to regulating bodies
- BObtaining an understanding of business risks and significant risks
- CObtaining an understanding of control risk
- DProcedures for sampling audit tests
20How does the related services framework differ from the assurance framework?
- ARelated services engagements do not result in an opinion
- BRelated services enhance the degree of confidence intended users can have
- CRelated services claim compliance with ISAEs
- DRelated services claim compliance with ISAs
21In an agreed-upon procedures engagement what matters generally have to be agreed between auditor and management?
- ANature, timing and extent of the specific procedures to be applied
- BThe intended user of the report
- CThe skills of the audit team
- DIdentification of the corporate governance framework
22A Letter of Representation includes all the following matters except:
- Amatters which are material to the financial statements
- Bmatters for which the auditors cannot obtain independent corroborative evidence and thus have to rely on directors as the primary source
- Cmatters which are routine
- Dmatters where management alone have knowledge and matters of judgement and opinion
23Which of the following matters is not ordinarily included in a management representations letter?
- AAcknowledgement of the directors' responsibilities for preparing financial statements in accordance with the appropriate financial reporting framework
- BDisclosure of compensating balances and other arrangements involving restrictions on cash balances
- CAmount of potential loss from litigation, including court costs
- DManagement's acknowledgment of its responsibility for the fair presentation of financial statements
24Which of the following is not a procedure to obtain an understanding of risk in the planning stage (described in ISA 315):
- AInquiries of management
- BAnalytical procedures
- CProcedures for sampling audit tests
- DObservation and inspection
25If an auditor discovers fraud, an auditor should
- AConduct further investigations
- BApproach the appropriate level of management
- CConsider withdrawing from the audit if the fraud is significant
- DAll of the above
26Fraudulent financial reporting may be caused by:
- AExternal Performance Pressures
- BLack of Segregation of Duties
- CInternal Performance Pressures
- DAll of the above
27In cases when a new auditor will replace an existing auditor, the code of ethics advises the new auditor to:
- ACommunicate with the existing auditor
- BReport the change to the SEC
- CCommunicate with the audit committee
- DPresent a change of auditor plan to the audit client
28All of the following factors influence the continuance of an existing auditor-client relationship except:
- APending litigation between client and auditor
- BExcessive risk
- CInability to obtain a management representation letter
- DThe balance of client fees owed
29Which of the following might be a commonly used guideline related to a financial statement materiality base?
- A15 % to 20% of current assets
- B2 % to 4 % of net income before taxes
- C5 % to 10% of long-term liabilities
- D1/2 % to 2% of total assets
30Which of the following papers would normally be retained on the permanent file maintained for a limited company audit client?
- ACompleted checklist of statutory disclosure provisions.
- BExtracts of minutes of meetings of the directors.
- CWritten representations from management.
- DCopy of the company’s legal constitution
Informationen
- Beschreibung
- Advanced Audit Principles and Practice students UoW
- Autor
- clara.azurmendi
- Sprache
- English
- Aufrufe
- 485
- Schlagwörter
- Bewertung
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