a.Qualified or adverse opinion.
Unqualified opinion with explanatory paragraph.
Qualified or disclaimer of opinion.
d.Unqualified opinion.e.Adverse or disclaimer of opinion.
RFJPIA CUP LEVEL 2 – Auditing Theory (AVERAGE QUESTION #1)
Which of the following is not explicitly referred to in the Code of Ethics assource of technical standards?
a.Commission on Audit.
b.Auditing and Assurance Standards Council.c.Securities and Exchange Commission.d.Relevant legislation.e.None of the above.
RFJPIA CUP LEVEL 2 – Auditing Theory (AVERAGE QUESTION #2)
This occurs when a firm or a member of the assurance team, promotes ormay be perceived to promote an assurance client’s position or opinion to the pointthat objectivity may or may be perceived to be compromised. Such may be thecase if a firm or a member of the assurance team were to subordinate their judgment to that of the client.
Answer: Advocacy threat.RFJPIA CUP LEVEL 2 – Auditing Theory (AVERAGE QUESTION #3)
An auditor who discovers that client employees have committed an illegalact that has a material effect on the client's financial statements most likely wouldwithdraw from the engagement if:a.The illegal act is violation of generally accepted accounting principles.
b.The client does not take the remedial action that the auditorconsiders necessary.
c.The illegal act was committed during a prior year that was not audited.d.The auditor has already assessed control risk at the minimum level.e.The auditor cannot reduce the material effect of the illegal act to animmaterial one.
RFJPIA CUP LEVEL 2 – Auditing Theory (AVERAGE QUESTION #4)
A written representation from a client's management which, among othermatters, acknowledges responsibility for the fair presentation of financialstatements should normally be signed by the:
a.Chief executive officer and the chief financial officer.
Chief financial officer and the chairman of the BOD.
Chairman of the audit committee of the BOD.
Chief executive officer, the chairman of the BOD and the client's lawyer.
Chief executive officer, chief financial officer and the chairman of theBOD.
RFJPIA CUP LEVEL 2 – Auditing Theory (AVERAGE QUESTION #5)