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    Tatyanna Kaliah
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    Auditing problems

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    Auditing problems

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
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    12 views12 pages

    Aud

    Uploaded by

    Tatyanna Kaliah
    Auditing problems

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 12
    \ Auditeg \ SETA INSTRUCTIONS: Select the best answer for each of following questons ALL questions are compulsory ang MUST be attempted. Mark only one answer for each tem on the answer sheet provided. Strictly NO ERASURES ALLOWED, Erasures will render your examination answer sheet INVALID, Use PENCIL NO. 2 only. GOODLUCK!® f the PART I - AUDITING THEORY 1. “In our opinion, the financial statements cive a true end fair view of * The level of assurance conveyed by such conclusion ‘s* 2. Absolute. cc. Limited. b. Reasonable 4. None. 2. It refers to the risks that a material misstatement will even occur, that it would not be prevented or detected by client internal controls, and that is not detected by the auditor's own procedures, 2. Inherent risk c. Detection risk b. Control risk d. Audit risk 3. In applying the audit risk model, which of the following components 1s determined last? a. Audit risk at low level b. Inherent risk besed on the susceptibility of the assertion to material misstatement. © Control risk based on the effectiveness of internal control. 4. Which of the following is not an assertion relating to classes of transactions? a. Accuracy. b. Cutoff Occurrence, d. Consistency. Tap Tas sing ‘SETA mee sens eran Petts wt one aoroprate assets? a. For a sample of non-current assets listed on the non- for scams camara ert ted on th relevant purchase invoices or deeds. d. For 2 sample of assets selected by physical inspection, agree that they are listed on the non-current assets ageest 6. Generally, which of the following types of tests of control provides the most persuias ve evidence? a. Inquiry of client personnel, b. Observation of the control activity being performed. ¢. Inspection of relevant documentation. 4, Reperformance of the contro! activity. 7. Inspection of tangible assets such as properties and inventory least likely provides evidence relating to which of the following assertions? a. Existence, b. Valuation and allocation. <. Rights and obligations. 4. All of the above. 8 The permanent files (or continuing audit files) contain information of continuing audit significance over many years’ audits of the same client. Which of the following is the most ikely example of permanent files? Copies of prior-years’ financial statements and audit reports. b. Client acceptance or continuance documentation ¢. Staff assignment notes. Pope THE === AD saPOTETS assens ray 9 accordance with PCAOB Auditing Standards, as cr 9 in aeeeroanes-Osley Act, the final assembly of audit fies should take piace on 2 timely basis ordinarily S oce than 45 days after the auditor's report date b More than 60 days after the auditor’s report date. Not more than 45 days after the auditor’s report date, Not more than 60 days after the auditor's report date. 10. Aud documentation must contain sufficient information to jon what type of auditor to understand the nature, timing, sent, and results of procedures performed? ‘An experienced audit team member. Any certified public accountant. An auditor qualified as a peer review specialist. An experienced auditor having no previous connection faith the engagement. ¢ anges Before accepting an engagement to audit a new client, a CPA is required to obtain 2 An understanding of the prospective client's industry and business, b. The prospective client's signature to the engagement fetter

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