A. Background i.e. industry B. Previous year’s audit i.e. any qualifications in the report C. Considering the work to be done by the client staff e.g. internal audit D. Considering whether the financial statements show a true and fair view The correct answer to the question: “Which one of the following is NOT considered to … Read more
A. Compliance risk B. Detection risk C. Control risk D. Inherent risk The correct answer to the question: “Audit risk is composed of 3 factors. Which of the following is NOT one of those factors?” is “Compliance risk”.
A. The timing of the audit B. Analytical review C. Last year’s written representation letter D. Obtaining written representations The correct answer to the question: “Which of the following should NOT be considered at the planning stage?” is “Obtaining written representations”.
A. the timing of the audit B. whether corrections from the inventory count have been implemented C. last year’s audit D. the potential use of internal audit The correct answer to the question: “At the planning stage you would NOT consider____________?” is “whether corrections from the inventory count have been implemented”.
A. The risk of the auditor carrying out a test the wrong way round B. The risk of reliance on unsuitable audit evidence C. The risk that the sample does not reflect the population D. The risk of the auditor reaching the wrong conclusions from testing The correct answer to the question: “Which of the … Read more
A. Systematic selection B. Pervasive selection C. Random selection D. Haphazard selection The correct answer to the question: “Which of the following is NOT an accepted method of selection in sampling?” is “Pervasive selection”.
A. Memorandum & articles of association B. Audit planning memorandum C. Summary of unadjusted errors D. Details of the work done on the inventory count The correct answer to the question: “Which of the following are you unlikely to see in the current file of auditors’ working papers?” is “Memorandum & articles of association “.
A. Appropriateness & competence B. Sufficiency & appropriateness C. Reliability & extensiveness D. Objectivity & independence The correct answer to the question: “According to ISA 500, the strength of audit evidence is determined by which two qualities?” is “Sufficiency & appropriateness”.
A. Internal audit B. Suppliers’ statements C. Board minutes D. Analytical review The correct answer to the question: “Which of the following is normally the most reliable source of audit evidence?” is “Suppliers’ statements”.
A. The design of the internal control system and the implementation of the controls B. The design of the internal controls and the implementation of the control system C. The implementation of the controls and the correctness of the accounting records D. The design of the internal control system and the correctness of the accounting … Read more