Auditing Theory Quizzer 002

1. Which of the following is one of the procedures in the audit acceptance phase?
a. Prepare the audit programme.
b. Perform audit procedures to understand the entity and its environment.
c. Investigate legal information.
d. Determine need for other professionals.
2. Which of the following least likely influence the auditor’s decision to send a separate
engagement letter to a component of parent entity client?
a. Legal requirements
b. Degree of ownership over a component entity by parent company
c. Location of the principal place of business of the component entity
d. Who appoints the auditor of the component
3. Which of the following is least likely included in an audit engagement letter?
a. Management responsibility for the financial statements.
b. The form of any reports or other communication of the results of the engagement.
c. Arrangement concerning the involvement of other auditors or experts in some aspects of
the audit.
d. The objective of financial reporting.
4. Based on PSA 210, which of the following refers to the use by the management of an acceptable
financial reporting framework in the preparation of the financial statements and the agreement
of management and, where appropriate, those charged with governance to the premise on
which an audit is conducted.
a. Precondition for an audit
b. Reportable conditions
c. General Financial Reporting Framework
d. Special Purpose Framework
5. The development of a general strategy and a detailed approach for the expected nature, timing,
and extent of audit refer to:
a. Supervision c. Audit procedures
b. Directing d. Planning