8/3/2018 Online Quiz Week 4 (5%)

Home / My courses / ACC300_0218 / Topic 4 / Online Quiz Week 4 (5%)

Started on Friday, 3 August 2018, 6:31 PM

State Finished
Completed on Friday, 3 August 2018, 9:54 PM
Time taken 3 hours 22 mins
Grade 2.5 out of 5.0 (50%)

Question 1
Incorrect

Mark 0.0 out of 0.5

Using the same senior personnel on an assurance engagement over a long period of time may create
what type of threat to audit independence?

Select one or more:

a. Self-interest

b. Advocacy

c. Intimidation

d. Familiarity

Question 2
Correct

Mark 0.5 out of 0.5

The party that is unable to sue the auditors under contract law is:

Select one or more:

a. the receiver

b. the liquidator

c. individual shareholders

d. the directors (on behalf of the company)

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Question 3
Incorrect

Mark 0.0 out of 0.5

Whose role is it to assist management to improve operational efficiency and effectiveness by

monitoring the internal control and risk management systems?

Select one or more:

a. The internal auditors

b. All of the above


c. The audit committee

d. The external auditors

Question 4
Incorrect

Mark 0.0 out of 0.5

The statutory body that is responsible for hearing applications in Australia as to whether auditors and
liquidators have breached the Corporation Act is:

Select one or more:

a. FRC

b. CALDB

c. ASIC

d. AUASB

Question 5
Correct

Mark 0.5 out of 0.5

The landmark case for the pronciple of contributory negligence is:

Select one or more:

a. AWA Ltd

b. Segenhoe Ltd

c. Pacific Acceptance

d. Kingston Cotton Mill

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Question 6
Correct

Mark 0.5 out of 0.5

Which case prompted the development of more specific and comprehensive Auditing Standards in
Australia

Select one or more:

a. AWA

b. Pacific Acceptance

c. AWA

d. Cambridge Credit

e. McKesson and Robbins

Question 7
Correct

Mark 0.5 out of 0.5

It is NOT a requirement to be registered as an auditor in Australia to: 

Select one or more:

a. be a fit and proper person

b. all are requirements to be registered as an auditor in Australia


c. be a member of CPA Australia, the ICAA or other approved body

d. have a degree or diploma from a course in accounting (including auditing) of not less than 3
years duration and in commercial law (including company law) of not less than 2 years duration
and in commercial law (including company law) of not less than 2 years duration or have other
equivalent qualifications acceptable to ASIC.

Question 8
Correct

Mark 0.5 out of 0.5

The significance of economic, financial or other relationships in determining independence in

appearance is evaluated by:

Select one or more:

a. what the auditor believes is unacceptable

b. what the auditor general decides is significant

c. what a reasonable and informed third party would conclude as unacceptable


d. what the company deems to be unacceptable 

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Question 9
Incorrect

Mark 0.0 out of 0.5

Which of the following is true regarding auditors and fraud?

Select one:
a. In the Kingston Cotton Mill case it was said that the audit roll was not primarily to detect
fraud 

b. Auditors are required to detect all fraud during an audit

c. Auditors should actively investigate the possibility of fraud if suspicious circumstances exist

d. b. and c. are true

Question 10
Incorrect

Mark 0.0 out of 0.5

The term 'Expectation Gap' refers to differences in expectations between:

Select one or more:

a. Auditors and users of audited financial reports

b. Auditors and their clients

c. CPA Australia/ICAA

d. Auditors and the ASIC


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