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

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Started on Friday, 3 August 2018, 9:57 PM

State Finished
Completed on Friday, 3 August 2018, 10:28 PM
Time taken 31 mins 26 secs
Grade 3.0 out of 5.0 (60%)

Question 1
Correct

Mark 0.5 out of 0.5

The term 'privity of contract' refers to:

Select one or more:

a. the fact that an audit is to be performed in accordance with professional standards

b. the fact that an auditor appointed to conduct a statutory audit cannot reduce their liability by
contract (s. 241)

c. the contractual relationship that exists between two or more contracting parties

d. the mandatory requirement that there must be an engagement letter setting out the terms of
the audit contract

Question 2
Correct

Mark 0.5 out of 0.5

 Which of the following would characterise a duty of a professional person?

Select one or more:

a. All of the above would characterise a duty of a professional person

b. Accepting the enforceability of the professional body's code of conduct

c. The objective and confidential provision of their services

d. Holding membership of a professional body

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

Question 3
Incorrect

Mark 0.0 out of 0.5

The audit trinity concept refers to

Select one or more:

a. none of the above

b. past, current and future approaches


c. external audit, internal audit, audit committee

d. conformance, performance and assurance

Question 4
Correct

Mark 0.5 out of 0.5

In respect of the provision of auditing services, the auditor will be liable to compensate the plaintiff if:

Select one or more:

a. a duty of care is owed to the plaintiff

b. all of the above


c. the plaintiff has suffered a quantifiable loss as a result of the auditors negligence

d. the audit is negligently performed or the opinion negligently given

Question 5
Correct

Mark 0.5 out of 0.5

ABC firm are the auditors of XYZ Company. The partner responsible for the audit has recently spent a
week working with XYZ as a paid consultant on there internal control systems. The ethical principle
that has been breached is:

Select one or more:

a. Auditor appointment

b. Auditor competence

c. Auditor rotation

d. Auditor independence


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

Question 6
Incorrect

Mark 0.0 out of 0.5

The term audit expectation gap refers primarily to differences in expectations between

Select one or more:

a. CPA Australia/ICAA and the ASIC

b. auditors and users of audited financial reports

c. Auditors and the ASIC

d. auditors and their clients



Question 7
Incorrect

Mark 0.0 out of 0.5

The decision in the Caparo case (1990) reduced the duty of care of auditor to:

Select one or more:

a. all users of the financial statements, except for investors

b. all users known to the auditor

c. the shareholders as a group

d. all users that ought reasonably to have been known to the auditor


Question 8
Correct

Mark 0.5 out of 0.5

The conceptual approach to independence requires that there is:

Select one or more:

a. independence in mind and appearance

b. independence in action and appearance

c. independence in mind and actions

d. independence in fact and appearance 



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

Question 9
Incorrect

Mark 0.0 out of 0.5

According to Greenwood which of these is NOT necessarily an attribute of a profession?

Select one or more:

a. A culture

b. Community sanction

c. Authority

d. Self regulation

Question 10
Correct

Mark 0.5 out of 0.5

Investors shift financial responsibility for audited financial information to the auditor in order to lower
the expected loss from litigation or related settlements. This describes which theory of auditing?

Select one or more:

a. Explanatory

b. Information hypothesis

c. Insurance hypothesis

d. Agency

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