MCQ5

Fair representation in the financial statements:

The underlying reason for a code of professional conduct for any profession is:

Because of legal liability and loss of professional reputation most auditors are concerned about

Money Laundering is the process by which criminals attempt to conceal the true origin and ownership of the proceeds of their criminal activities, allowing them to maintain control over the proceeds. In which order is money laundered:

The auditor's best defense when material misstatements are not uncovered is to have conducted the audit:

Which of the following statements is the most correct regarding errors and fraud?

Which of the following statements is true with respect to audit committees?

The auditor has considerable responsibility for notifying users as to whether or not the statements are properly stated. This imposes upon the auditor a duty to:

The members of a client's "audit committee" should be:

When determining whether independence is impaired because of an ownership interest in a client company, materiality will affect ownership:

Relevant safeguard(s) against a financial interest in a client could be through:

An auditor should recognize that the application of auditing procedures may produce evidence indicating the possibility of errors or fraud and therefore should:

If an auditor discovers fraud, an auditor should:

When dealing with laws and regulations that do not have a direct effect on the financial statements, the auditor:

Which of these issues relating to good engagement performance should be addressed in an audit firm's procedures manual

According to ISQC 1, when considering whether to accept an engagement with a new or existing client auditors, the auditors must consider whether a....................arises?

All of the following factors influence the continuance of an existing auditor-client relationship except:

Which of the following statements is usually true?

The auditor's evaluation of the likelihood of material employee fraud is normally done initially as a part of:

When an auditor believes that an illegal act may have occurred, the auditor should first:

Which of the following is the auditor least likely to do when aware of an illegal act?

Which of the following is a factor that relates to incentives to misappropriate assets?

Auditor's need to exhibit professional scepticism when auditing a client. This auditing standard is best expressed by which of the following?

While performing their audit, the audit team uncovers fraud that is likely to have an immaterial affect on the financial statements taken as whole. In this case the auditors should:

Which of the following parties is responsible for implementing internal controls to minimize the likelihood of fraud?

Qualitative factors can affect an auditor's assessment of materiality. Which of the following statements is true? I. Misstatements that are otherwise immaterial may be material if they affect earnings trends. II. Misstatements that are otherwise minor may be material if there are possible consequences arising from contractual obligations.

When dealing with audit risk:

The major limitation of using the audit risk model is the:

Which of the following is least likely to uncover fraud?

When a group auditor uses the work of a component auditor he must document: