1. Which of the following audit procedures could obtain evidence to satisfy 6.

6. Which of the following audit evidence is more reliable?

for existence objective? a. Evidence obtained from an independent third-party.
a. Recalculate depreciation expense. b. Evidence generated from an ineffective internal control system.
b. Physical inventory count. c. Evidence in form of copy rather than original document.
c. Evaluating collectability of receivables. d. Evidence in form of oral evidence rather than written evidence.
d. Recalculate relevant receivables accounts. 7. Which of the following terms identifies requirements for audit evidence?
2. Which of the following statements is correct regarding the concept of a. Adequate and reasonable
materiality in audit? b. Sufficient and acceptable
a. Materiality is a matter of professional judgement. c. Efficient and appropriate
b. Materiality depends on the nature of formation. d. Sufficient and appropriate
c. Materiality depends on the amount of information. 8. Which of the following are general types of audit evidence?
A. Physical and non-physical evidence
d. Materiality is an element of the audit risk model. B. Documentary and physical evidence
3. When considering internal control, an auditor should be aware of the C. Persuasive and substantive evidence
D. Tests of control and substantive procedures evidence
concept of "reasonable assurance", which recognizes that:
9. Which of the following may not be used by the auditors as other
a. Internal control may be ineffective due to mistakes in judgment and
information of audit evidence?
personal carelessness.
a. Minutes of the BOD
b. Adequate safeguards over access to assets and records should permit
b. Confirmations from the client's bank, suppliers, and debtors
an entity to maintain proper accountability.
c. Adjustments to the FSS but not reflected in formal journal entries.
c. Establishing and maintaining internal control is an important
d. Information obtained from audit procedures such as inquiry,
responsibility of management.
observationand inspection.
d. The cost of an entity's internal control should not exceed the benefits
10. Which of the following is considered as the technique to obtain audit
expected to be derived.
evidence?
4. Which of the following best describes the appropriateness of audit
a. A Recalculation
evidence?
b. B. Confirmation
a. The compliance with the audit standards
c. C. Observation
b. The nature of the audit evidence obtained.
d. D. All of the above
c. The quality of the audit evidence obtained.
11. Which of the following is incorrect description about audit evidence?
d. The quantity of the audit evidence obtained.
a. Audit evidence is cumulative in nature.
b. Auditors are expected to address all information and obtain all
evidence that may exist.
5. Which of the following audit sampling technique is mostly relied on
c. Audit evidence is all the information used by the auditor in arriving at
auditor professional judgement?
the conclusions on which the audit opinion is based.
a. Technical Sampling
d. Audit evidence includes the information contained in the accounting
b. Risk-based Sampling
records underlying the financial statements and other information.
c. Statistical Sampling
d. Non-Statistical Sampling
12. Three conditions generally are present when fraud occurs. Select the one 17. Which of the following statements is CORRECT?
below that is not one of those conditions. a. The overall audit strategy consists of detail audit procedures to be
A. Incentive or pressure. performed
B. Opportunity b. The ethical requirements for independent auditors do not include
C. Supervisory position independence.
D. Attitude. c. The auditor is not responsible for all information in the audited
13. What is the objective of pre-planning audit? financial statements
a. To determine audit risks. d. The auditor does not have a responsibility to identify or assess all
b. To evaluate the effectiveness of the internal control. business risks.
c. To determine whether to accept the audit engagement letter with 18. Which of the following should not be considered in planning the audit
client. engagement?
d. All of the above are incorrect. a. A. Materiality level and audit risk
14. Which of the following factors would be most likely to cause the b. B. The client's background information
independent auditors to decline a new audit engagement? c. C. Types of audit opinion in the audited report
a. The prospective client has already completed its physical inventory d. D. Ethical requirements of engagement team
count. 19. To which of the followings should the specific audit objective that related
b. The auditor lacks an understanding of the prospective client's primarily in designing audit programs?
operations and industry. A. Selected audit procedures
c. The auditor is unable to review the predecessor auditor's working B. Financial statement assertions
papers. C. Timing of audit procedures
d. The prospective client is unwilling to make all financial records D. Cost-benefit gathering evidence.
available to the auditor. 20. Which of the following involves establishing the overall audit strategy for
15. Which of the following best describes the business risks of a company? the engagement and developing an audit plan in order to reduce audit
a. Those threats to the objectives of audit opinion risk to an acceptably low level?
b. Those characteristics of a company a. A Reporting
c. Those associated with a company's survival and profitability. b. B. Planning
d. Those aspects that need to consider before the acceptance of the audit c. C. Field work
engagement. d. D. Organizing
16. Which of the following is a part of substantive procedures? 21. In planning stage of an audit engagement, the auditor is required to
A. Observe the application of controls perform audit procedures to obtain an understanding of the entity and its
B. Inspect documents and reports environment, including its internal control. These procedures are called:
C. Test account balances a. A Substantive tests
D. Inquire client personnel. b. B. Test of controls
c. C. Risk assessment procedures
d. D. Control Assessment
 27. Why do the auditors try to achieve independence in appearance?
22. Which of the following is most likely to be considered a subsequent event A. To become independent in fact
require adjustment to the financial statements? B. To maintain an unbiased mental attitude
A. A business combination completed after year-end, but for which C. To comply with the responsibility’s principle.
negotiations began prior to year-end. D. To maintain public confidence in the profession.
B. A strike subsequent to year-end due to employee complaints 28. Which of the following is an example of an operational audit?
about working conditions which originated two years ago. A. An audit of financial statements
C. Customer checks deposited prior to year-end but determined to B. An audit of a company's internal control over financial reporting
be uncollectible after year-end. C. An audit of the efficiency and effectiveness of a company's legal
D. Introduction of a new line of products after year-end for which department
major research had been completed prior to year-end. D. An audit of a company's policies and procedures for adhering to
23. Which of the following events occurring on 5 January 2022, is most likely environmental laws and regulations.
to result require disclosure in the notes to the 2021 financial statements 29. Which of the following is the essential purpose of financial statement
(if material)? audit?
A. A business combination. A. Detection of fraud
B. Early retirement of bonds payable B. Examination of individual transactions to certify their validity.
C. Plant closure due to a strike C. Assurance of the consistent application of correct accounting
D. All of the above procedures
24. Which of the followings are types of audits? D. Determination of whether the client's financial statement are
A. Compliance audit, internal audit, government audit. fairly stated
B. Financial statements audit, internal audit, independent audit 30. Why do the auditors assess the risk of material misstatement?
C. Operational audit, financial statements audit, compliance audit. A. Because it will affect the level of detection risk that the auditor
D. Operational audit, financial statements audit, independent audit may accept.
25. Which of the following is an example of a compliance audit? B. Because it will indicate to the auditor where inherent nsk may
A. An audit of financial statements be the greatest.
B. An audit of a company's internal control over francu roting C. Because it is relevant to the auditor's understanding of the
C. An audit of the efficiency and effectiveness of a company's legal control environment
game D. Because it will provide assurance that the auditor's overall
D. An audit of a company's policies and procedures for adhering to matenality levels are appropriate.
environmental laws and regulations. 31. Which of the following business characteristics is indicative of high
26. Which of the following are common inherent limitations that hinder the inherent risk?
effectiveness of an internal control system? A. Substantial turnover of management
a. A Cost vs. benefit B. Large likely misstatements detected in prior audits.
b. B. Human error C. Operating results that are highly sensitive to economic factors
c. C. Collusion D. All of the above
d. D. All of the above
32. Which of the following statements is correct regarding materiality in D. All of the above
audit? 37. Which of the following is most likely to be considered a subsequent event
a. Materiality level follows professional guidance of VACPA require adjustment to the financial statements?
b. Performance materiality is at the highest value. a. A business combination completed after year-end, but for which
c. Materiality level may be revised during the audit engagement if negotiations began prior to year-end.
necessary. b. A strike subsequent to year-end due to employee complaints about
d. Materiality level should be set as low as possible to eliminate all risk working conditions which originated two years ago.
with the audit engagement c. Customer checks deposited prior to year-end but determined to be
33. Which of the following is NOT a procedure to assess for business going uncollectible after year-end.
concern? d. Introduction of a new line of products after year-end for which major
a. Review management's plans for future actions research had been completed prior to year-end.
b. Ask client's lawyer about the existence of litigation and claims 38. An auditor accepted an engagement to audit the 20X8 financial
c. Review subsequent events might affect the entity going concern statements of EFG Corporation and began the fieldwork on September 30,
d. Check the major purchase of non-current assets after reporting date 20x8 EFG gave the auditor the 20X8 financial statements on January
34. Which of the followings best describes the purpose of audit report? 17.20X9 The auditor completed the audit on February 10, 20X9, and
A. To confirm the possibility of the business going concem matter issued the report on February 16, 20x9. The cent's representation letter
B. To express the opinion on the management performance during normally would be dated.
the financial year A. December 31, 20X8
C. To provides reasonable assurance to the users of the financial B. January 17,20X9
statements that these statements are reliable C. February 10, 20X9.
D. To show the amount of work has been done before auditor D. February 16, 20X9
could reach an independent opinion about the 39. Internal control system could help to achieve objectives including
35. Which of the following audit opinions should be issued when the operational efficiency, reliable reporting and
management refuses to set up allowance for doubtful debt and the auditor A. Cost reduction
concludes that this matter is material yet pervasive to the financial B. Law compliance
statements at a whole? C. Risk assessment
A. Qualified opinion D. Control environment
B. Adverse opinion 40. Which of the followings is not correct?
C. Unmodified opinion with an emphasis of matter paragraph A. Control activity can help to eliminate employee collusion.
D. Unmodified opinion without an emphasis of matter paragraph B. All steps of a transaction or a business cycle should not be
36. Which of the following events occurring on 5 January 2022, is most likely controlled by one individual,.
to result require disclosure the notes to the 2021 financial statements C. Business transactions should be approved before happening.
(material)? D. Management is primarily responsible for designing and
A. A business combination. maintaining an effective control system.
B. Early retirement of bonds payable.
C. Plant closure due to a strike
41. Which of the following should not be classified as a part of control 46. Which of the following statements best describes the management
environment? assertions?
A. Commitment to competence A. Management assertions are stated in the footnotes to the
B. Management operating style financial statements.
C. Organizational structure B. Management assertions are explicitly expressed
D. Analytical review representations about the financial statements.
42. Which of the following should not be classified as control activities of C. Management assertions are provided to the auditor in the
internal control? assertions letter but are not disclosed on the financial
A. Segregation of duties statements.
B. Risk response D. Management assertions are implied or expressed
C. Analytical reviews representations about accounts, transactions, and disclosures in
D. Physical control the financial statements
43. Which of the following are components of internal control? 47. Which of the following is correct regarding errors and fraud?
A. Control environment, control activities, organizational A. Errors are always fraud and frauds are always errors.
structure, management philosophy, and information system B. An error is unintentional, while fraud is intentional.
B. Control activities, legal environment, management philosophy. C. Frauds occur more often than errors in financial statements.
organizational structure, information and communication D. Auditors have more responsibility for finding fraud than errors
C. Control environment, risk assessment, control activities, 48. What is the audit objective in testing for cutoff?
information and communication, organizational structure a. Whether all of the current period's transactions are recorded.
D. Control environment, risk assessment, control activities, b. The proper cutoff between capitalizing and expensing expenditures.
information and communication, and monitoring activities c. Whether transactions are recorded in the correct accounting period.
44. What is the primary reason for a company to implement-inter control d. The proper cutoff between disclosing items in footnotes or in account
process? balances.
A. To provide a basis for the company's audit 49. Which of the following is least likely to be considered as an "emphasis of
B. To encourage the company to comply with regulations matter" in what remains an unqualified audit report?
C. To ensure the accuracy, reliability and timeliness of information A. The company is a component of a larger business enterprise.
D. To provide reasonable assurance that the objectives of the B. An unusually important significant event
organization are achieved C. A decision not to confirm accounts receivable.
45. Which of the following materiality is at the highest value? D. A risk or uncertainty.
A. Clearly trivial. 50. The auditor who wishes to indicate that the entity has significant
B. Specific materiality. transactions with related parties should disclose this fact in:
C. Overall materiality. A. An explanatory paragraph to the auditors' report.
D. Performance materiality B. An explanatory note to the financial statements.
C. The body of the financial statements.
D. The "summary of significant accounting policies" section of the
financial statements
51. When restrictions that significantly limit the scope of the audit are 56. Which of the following audit opinion should be issued when the
imposed by the client. But it does no effect pervasive on the financial management refuses to set up allowance for doubtful debt and the auditor
statements. The auditor should generally issue which of the following concludes that this matter is material yet pervasive to the financial
opinions? statements at a whole?
A. Qualified. A. Qualified opinion
B. Disclaimer. B. Adverse opinion
C. Adverse C. Unmodified opinion with an emphasis of matter paragraph
D. Unqualified D. Unmodified opinion without an emphasis of matter paragraph
52. When financial statements are materially misstated, the auditor should 57. Which of the followings best describes the purpose of audit report?
generally issue which of the following opinions? a. To confirm the possibility of the business going concern matter
A. Qualified. b. To express the opinion on the management performance during the
B. Disclaimer. financial year
C. Adverse. c. To provides reasonable assurance to the users of the financial
D. A or C statements that these statements are reliable.
53. When the auditor disagrees with management regarding the acceptability d. To show the amount of work has been done before auditor could reach
of the accounting policies selected and it affects pervasively on the an independent opinion about the
financial statements. The auditor should generally issue which of the 58. Which of the following is NOT a procedure to assess for business going
following opinions? concern?
A. Qualified a. Review management's plans for future actions
B. Disclaimer b. Ask client's lawyer about the existence of litigation and claims.
C. Adverse c. Review subsequent events might affect the entity going concern.
D. Unqualified d. Check the major purchase of non-current assets after reporting date.
54. When the auditor disagrees with management regarding the acceptability 59. Which of the following is the essential purpose of financial statement
of the accounting policies selected and it does not affect pervasively on the audit?
financial statements. The auditor should generally issue which of the a. Detection of fraud
following opinions? b. Examination of individual transactions to certify their validity.
A. Qualified c. Assurance of the consistent application of correct accounting
B. Disclaimer procedures
C. Adverse d. Determination of whether the client's financial statement are fairly
D. Unqualified stated
55. Which of the following is NOT a type of audit opinion? 60. Which of the following is an example of an operational audit?
A. Misstatement opinion A. An audit of financial statements
B. Qualified opinion B. An audit of a company's internal control over financial reporting
C. Adverse opinion C. An audit of the efficiency and effectiveness of a company's legal
D. Disclaimer of opinion department
 D. An audit of a company's policies and procedures for adhering to 67. Which of the following is an example of a compliance audit?
environmental laws and regulations. a. An audit of financial statements
61. Independent audits give ____________that the financial statements are free b. An audit of a company's internal control over financial reporting
from material misstatement. c. An audit of the efficiency and effectiveness of a company's legal
A. Materiality department
B. Competence d. An audit of a company's policies and procedures for adhering to
C. Reasonable assurance environmental laws and regulations.
D. Completed confidence. 68. Which of the following assertions are related to account balances?
62. Which of the following is the objective of audit prior 1840? A. Existence, Understandability Rights
A. Checking for business risk B. Understandability, Existence, Classification
B. Detecting of fraud and errors C. Classification, Valuation Rights
C. Verifying of business transaction. D. Valuation, Rights, Existence
D. Providing credibility to the financial statements. 69. Which of the following risks are not related to the audit procedure of the
63. Why do the auditors try to achieve independence in appearance? auditors?
A. To become independent in fact. A. Inherent risk, Audit risk
B. To maintain an unbiased mental attitude. B. Detection risk, Audit risk
C. To comply with the responsibility’s principle. C. Inherent risk, Control risk
D. To maintain public confidence in the profession. D. Audit risk, Risk of material misstatement
64. Which of the following are common inherent limitations that hinder the 70. Audits of financial statements are designed to obtain reasonable
effectiveness of an internal control system? assurance of detecting misstatement due to:
A. Cost vs. benefit A. fraudulent financial reporting
B. Human error B. Misappropriation of assets
C. Collusion C. Neither A nor B
D. All of the above D. Both A and B
65. In the history of auditing, the business risk approach auditing has been 71. What are the components of audit risk model?
applied since: A. Inherent risk, Control risk, Audit risk
A. 1840s B. Audit risk, Potential risk, Detection risk
B. 1920s C. Inherent risk, Control risk, Detection risk
C. 1960s D. Audit risk, Client risk, Control risk
D. 1990s 72. What are components of risk of material misstatement at assertion levels?
66. Who held ultimate responsibilities in establishing financial statement of a A. Control risk, Material risk
business? B. Inherent risk, Control risk
A. Chief accountants C. Inherent risk, Business risk
B. Internal auditors D. Detection risk, Audit risk
C. Board of directors 73. The philosophy and operating style of management would most likely
D. Independent auditors have a significant influence on an entity's control environment when:
 Câu 5: Which of the following factors would be most likely to cause the
A. The duties of all management are specifically designated.
independent auditors to decline a new audit engagement?
B. The audit committee is active in overseeing the financial
reporting process. A. The prospective client has already completed its physical inventory count.

C. Management is dominated by one individual. B. The auditor lacks an understanding of the prospective client's operations and
D. The internal auditors report directly to management. industry.

C. The auditor is unable to review the predecessor auditor's working papers.

BÀI THI THỬ TỔNG HỢP
D. The prospective client is unwilling to make all financial records available to the
Câu 1: Which portion of an audit is least likely to be completed before the auditor.
balance sheet date?
Câu 6: Which of the following best describes the business risks of a company?
A. Tests of controls.
A. Those threats to the objectives of audit opinion
B. Issuance of an engagement letter.
B. Those characteristics of a company
C. Substantive procedures.
C. Those associated with a company's survival and profitability.
D. Assessment of control risk.
D. Those aspects that need to consider before the acceptance of the audit
Câu 2: Which of the following should the auditors obtain from the predecessor engagement
auditors before accepting an audit engagement?
Câu 7: Which of the following is a part of substantive procedures?
A. Analysis of balance sheet accounts.
A Observe the application of controls
B. Analvsis of income statement accounts.
B. Inspect documents and reports
C. All matters of continuing accounting significance.
C. Test account balances
D. Facts that might bear on the integrity of management.
D. Inquire client personnel
Câu 3: The primary objective of tests of details of transactions performed as
Câu 8: Which of the following statement is CORRECT?
substantive procedures is to:
A. The overall audit strategy consist of detail audit procedures to be performed
A. Comply with generally accepted auditing standards.
B. The ethical requirements for independent auditors do not include independence.
B. Attain assurance about the reliability of the accounting system.
C. The auditor is not responsible for all information in the audited financial
C. Detect material misstatements in the financial statements.
statements.
D. Evaluate whether management's policies and procedures are operating effectively.
D. The auditor does not have a responsibility to identify or assess all business risks.
Câu 4: Three conditions generally are present when fraud occurs. Select the
Câu 9: Which of the following should not be considered in planning the audit
one below that is not one of those conditions.
engagement?
A. Incentive or pressure.
A. Materiality level and audit risk
B. Opportunity.
B. The client's background information
C. Supervisory position.
C. Types of audit opinion in the audited report
D. Attitude.
D. Ethical requirements of engagement team
Câu 10: To which of the followings should the specific audit objective that related Câu 15: An entity's monitoring activities often include:
primarily in designing audit programs?
A. The periodic audits by internal auditors.
A. Selected audit procedures
B. The audit of the annual financial statements.
B. Financial statement assertions
C. Management review of weekly performance reports.
C. Timing of audit procedures

D. Cost-benefit gathering evidence D. All of the above are correct

Câu 11: Which of the following involves establishing the overall audit strategy for the Câu 16: Controls over financial reporting are often classified as preventative,
engagement and developing an audit plan in order to reduce audit risk to an acceptably detective, or corrective. Which of the following is an example of a detective
low level? control?

A. Reporting A. Segregation of duties over cash disbursements.

B. Planning B. Requiring approval of purchase transactions.
C. Field work C. Preparing bank reconciliations.
D. Organizing
D. Maintaining backup copies of key transactions.
Câu 12: In planning stage of an audit engagement, the auditor is required to perform
audit procedures to obtain an understanding of the entity and its environment, including
Câu 17: Controls over financial reporting are often classified as preventative,
its internal control. These procedures are called: detective, or corrective. Which of the following is an example of a preventative
control?
A. Substantive tests
A. Segregation of duties over cash disbursements.
B. Test of controls
B. Requiring approval of purchase transactions.
C. Risk assessment procedures
C. Maintaining backup copies of key transactions.
D. Control Assessment
D. All of the above
Câu 13: What best describes the purpose of the independent auditors to consider the
internal control in a FS audit for a company?
Câu 18: Of the following statements about internal control, which one is not
A. To determine the nature, timing, and extent of audit testing.
valid?
B. To make recommendations to the client regarding improvements in internal control.
A. No one person should be responsible for the custody and the recording of an
C. To train new auditors on accounting and control systems. asset.
D. To identify opportunities for fraud within the client's operations B. Transactions should be properly authorized before such transactions are
processed.
Câu 14: Which of the following would be least likely to be considered an objective of
internal control?
C. Because of the cost/benefit relationship, a client may apply controls on a test
A. Checking the accuracy and reliability of accounting data. basis.

B. Detecting management fraud. D. Controls reasonably ensure that collusion among employees cannot

C. Encouraging adherence to managerial policies. OCCUr

D. Safeguarding assets.
Câu 19: What is the primary reason for a company to implement internal control Câu 24: Internal control system could help to achieve objectives including
process? operational efficiency, reliable reporting and:
A. To provide a basis for the company's audit A. Cost reduction
B. To encourage the company to comply with regulations
B. Law compliance
C. To ensure the accuracy, reliability and timeliness of information
C. Risk assessment
D. To provide reasonable assurance that the objectives of the organization are achieved
D. Control environment
Câu 20: Which of the following are components of internal control?
Câu 25: An auditor may compensate for a weakness in the internal control by
A. Control environment, control activities, organizational structure, management philosophy, increasing the extent of
and information system
A. Tests of controls
B. Control activities, legal environment, management philosophy, organizational structure,
information and communication B. Detection risk
C. Control environment, risk assessment, control activities, information and communication, C. Substantive tests of details
organizational structure
D. Inherent risk
D. Control environment, risk assessment, control activities, information and communication,
and monitoring activities
Mid term
Câu 21: Which of the following should not be classified as control activities of internal
Câu 1: Internal control system would:
control?

A. Segregation of duties a. Help management reducing direct involvement with the daily operations.

B. Risk response b. Help business eliminating human error.

C. Analytical reviews c. Help auditor establishing appropriate audit opinion.

D. Physical control d. Help shareholders evaluating the business and management performance.
Câu 22: of the following should not be classified as a part of control environment? Câu 2: What is the reason for management to evaluate internal control svstem overtime?

A. Commitment to competence a. here is a risk of the system might not work properly.

B. Management operating style b. This is a requirement by law and standards.

C. Organizational structure c. Management could identify the cost of applying for internal

D. Analytical review control system.

Câu 23: Which of the followings is not correct? d. It helps employees to understand their roles and responsibility

A. Control activities can help to eliminate employee collusion. Câu 3: What are tests of controls?

B. All steps of a transaction or a business cycle should not be controlled by one individual. a. Audit procedures to evaluate the operating effectiveness of client internal control system.

C. Business transactions should be approved before happening. b. Tests to perform before accepting an audit client.

D. Management is primarily responsible for designing and maintaining an effective control c. A technique in collecting for audit evidence.
system.
d. A test to confirm the account balances and transactions at assertion level.
Câu 4: Which of the following is INCORECT? Câu 9: Which of the following is an example of detection risk?

a. Control activities would help to eliminate employee collusion. a. Audit sample is unrepresentative.

b. No individual should control all steps of a transaction or a business cycle. b. Business is operating in a rapidly changing technical environment.

c. There is no guidance for responsibility in the business.

c. Business transactions are required to be approved before happening.
d. The audit fee is at abnormal low level.
d. Designing and maintaining an effective control system is the responsibility of the
management. Bài Thi Tổng Hợp
Câu 5: Which of the following is INCORECT? 1. Which procedures of an audit is least likely to be completed prior to the end of a
fiscal year?
a. Dontrol activities would help to eliminate employee collusion.
A. Substantive procedures.
b. No individual should control all steps of a transaction or a business cycle. B. Tests of controls.
C. Acceptance of an engagement letter.
c. Business transactions are required to be approved before happening. D. Assessment of control risk.
2. Which of the following items may be inspected or counted as "Physical
d. Designing and maintaining an effective control system is responsibility of the examination" by the auditor?
management. A. cash, inventory, and payroll timecards.
B. cash, inventory, canceled checks, and sales documents.
Câu 6: What are audit objectives?
C. cash, inventory, canceled checks, and tangible fixed assets.
a. Aspects that require auditor's consideration for fraud and error in order to achieve D. cash, inventory, securities, notes receivable, and tangible fixed assets.
the objective of financial statementaudits.
3. What are tests of controls?
b. Auditor duty to provide unbiased independent opinion about the true and fair of
A. Audit procedures to evaluate the operating effectiveness of client internal control system.
client financial statement.
B. Tests to perform before accepting an audit client.
c. Auditor approaches in collecting evidence for financial statement audit.
C. A technique in collecting for audit evidence.
d. Requirements of maintaining competence and independence of auditor in an audit
engagement. D. A test to confirm the account balances and transactions at assertion level.
Câu 7: To reach an opinion, obtained audit evidence are evaluated or measured against: 4. What is the objective of pre-planning audit? *
A. Suitable criteria. A. To determine audit risks
b. Audit report. B. To evaluate the effectiveness of the internal control
c. Audit/accounting standard. C. To determine whether to accept the audit engagement letter with client
d. Company law. D. All of the above are incorrect
Câu 8: Which of the following statement is correct regarding materiality in audit? 5. Which of the following audit procedure could obtain evidence to satisfy for
a. Materiality level is revised during the audit engagement it necessary. existence objective?
b. Materiality level is set as low as possible to eliminate all risk with the audit engagement. A. Compares total of receivable subsidiary ledger to total receivable control account.
C. Materiality level follows professional guidance of VACA. B. Recalculate depreciation expense.
d. Performance materiality is at the highest value. C. Evaluating collectability of receivables.

D. Physical inventory count.

6. Which of the following should not normally be included in the engagement letter for 11. Which of the followings should be referred to as risk of material misstatement? *
an audit?
A. control risk and acceptable audit risk.
A. A description of the responsibilities of client personnel to provide assistance
B. inherent risk.
B. An indication of the amount of the audit fee
C. the combination of inherent risk and control risk.
C. A description of the limitations of an audit
D. inherent risk and audit risk.
D. A listing of the client's branch offices selected for testing
12. Which of the following accounts may be assessed as low in inherent risk? *
7. Which of the following is NOT a procedure to assess for business going concern? *
A. inventory.
A. Check the major purchase of non-current assets after reporting date.
B. marketable securities.
B. Review management's plans for future actions.
C. cash.
C. Ask client's lawyer about the existence of litigation and claims.
D. accounts receivable.
D. Review subsequent events might affect the entity going concern.
13. Which of the following statements is incorrect? *
8. In a standard audit report, it clearly states that who is responsible for preparation of
the financial statements? A. There are many ways an auditor can accumulate evidence to meet overall audit objectives.

A. the auditor. B. Sufficient appropriate evidence must be accumulated to meet the auditor's professional
responsibility.
B. the management.
C. It is appropriate to minimize the cost of accumulating evidence.
C. both the management and the auditor.
D. Gathering evidence and minimizing costs are equally important considerations that affect
D. none of the above. the approach the auditor selects.

9. Which is the suitable form of audit contracts (engagement letters)? 14. Which of the following statement is NOT one of the reasons that auditors provide
only "reasonable assurance" on the financial statements?
A. either oral or written.
A. The auditor commonly examines a sample, rather than the ervre population of transactions.
B. written.
B. Accounting presentations contain complex estimates which involve uncertainty.
C. written and notarized.
C. Fraudulently prepared financial statements are often difficult to detect.
D. written if the client is regulated by the State Securities Commission of Vietnam.
D. Auditors believe that reasonable assurance is sufficient in the vast majority of cases.
10. Which of the following business characteristics is indicative of high inherent risk?
15. Which of the following materiality is at the highest value?
A. Substantial turnover of management
A. Clearly trivial
B. Large likely misstatements detected in prior audits
B. Specific materiality.
C. Operating results that are highly sensitive to economic factors
C. Overall materiality.
D. All of the above
D. Performance materiality
16. Which of the following should be accepted as audit evidence? * 21. Which of the following are general types of audit evidence?

A. Oral responses to the auditor from employees of the company under audit. A. Physical evidence, Documentary evidence

B. Written communications from company employees or outsiders. B. Documentary evidence, Written evidence

C. Observations made by an auditor. C. Physical evidence, Non-physical evidence

D. Evidence may take any of the above forms. D. All of the above

17. Which of the following statements is incorrect? 22. When a qualified or adverse opinion is issued, the qualifying paragraph is inserted:

A. It is possible to vary the sample size from one unit to 100% of the items in the population. A. between the introductory and scope paragraphs.

B. The decision of how many items to test should not be influenced by the increased costs of
performing the additional tests.
C. The decision of how many items to test must be made by the auditor for each audit
procedure.
B. between the scope and opinion paragraphs.
C. after the opinion paragraph, as a fourth paragraph.
D. immediately after the address, as the first paragraph.

D. The sample size for any given procedure is likely to vary from audit to audit. 23. The auditor obtains audit evidence to draw reasonable conclusions on which to base
the audit opinion by performing audit procedures to:
18. Business risks are:
A. Detect material misstatements at the assertion level
A. Characteristics of the audit client.
B. Test the operating effectiveness of controls in preventing, or detecting and correcting,
B. Those threat to the objective of audit opinion. material misstatements at the assertion level

C. Aspects that need to consider before the acceptance of audit engagement. C. Obtain an understanding of the entity and its environment, including its internal control, to
assess the risks of material misstatement at the financial statement and assertion levels
D. Those associated with a company's survival and profitability.
D. All of the above
19. Which of the following considered as the technique to obtain audit evidence?
24. Which of the following should likely be the objective of an audit of financial statements? *
A. Recalculation
A. To determine whether an organization is operating efficiently and effectively.
B. Confirmation
B. To review whether an entity is following specific procedures or rules set down by some higher
C. Observation authority.

D. All of the above C. To investigate whether the management team is fulfilling its fiduciary responsibilities to shareholders.

20. Business system of internal control could help to achieve objectives including D. None of these choices.
operational efficiency, reliable reporting and: 25. Which of the following should the auditors obtain from the predecessor auditors before
accepting an audit engagement?
A. Risk assessment.
A. Analysis of balance sheet accounts.
B. Law compliance.
B. Analysis of income statement accounts.
C. Control environment.
C. All matters of continuing accounting significance.
D. Cost reduction.
D. Facts that might bear on the integrity of management.
26. Which of the following organizations issues the Vietnamese Standards on Auditing 31. Which of the following risks are not related to the audit procedure of the auditors? *
(VSA)? *
A. Inherent risk, Audit risk
A. The Government
B. Detection risk, Audit risk
B. The Ministry of Finance
C. Inherent risk, Control risk
C. The State Audit of Vietnam
D. Detection risk, Control Risk
D. The Vietnam Association of Certified Public Accountants
32. As part of their audit, the auditors obtain a representation letter from their client.
27. The Fraud Triangle comprises three factors, which are: * Which of the following is not a valid purpose of such a letter?

A. Opportunity, incentive or pressure, and control environment. A. To increase the efficiency of the audit by eliminating the need for other audit procedures.

B. Opportunity, incentive or pressure, and attitude or rationalization. B. To remind the client's management of its primary responsibility for the financial statements.

C. Opportunity, monitoring activities, and attitude or rationalization. C. To document in the audit working papers the client's responses to certain verbal inquiries
made by the auditors during the engagement.
D. Incentive or pressure, promotion, and attitude or rationalization.
D. To provide evidence in those areas dependent upon management's future intentions.
28. Which of the following assertions are related to account balances? *
33. External audits _____ that the financial statements are free from material
A. Existence, Understandability, Rights misstatement.
B. Understandability, Existence, Classification A. Competence
C. Classification, Valuation, Rights B. Completed confidence
D. Valuation, Rights, Existence C. Materiality
29. What is the purpose of audit report? * D. Reasonable assurance
A. To provides assurance to the users of the financial statements that these statements are 34. In case the auditor decides to issue an adverse opinion due to material misstatements
reliable. in the financial statements, the scope paragraph of the audit report will be:
B. To confirm the possibility of the business going concern matter. A. qualified.
C. To show the amount of work has been done before auditor could reach an independent B. unchanged.
opinion about the.
C. deleted.
D. To express the opinion on the management performance during the financial year.
D. expanded to identify the additional procedures which the auditor performed.
30. Which of the following statements is not correct? *
35. Which of the following is not a required work at complete audit phase?
A. Inherent risk is inversely related to detection risk.
A. Obtain understanding of business environment.
B. Inherent risk is inversely related to evidence.
B. Review of subsequent events.
C. Inherent risk is the susceptibility of the financial statements to material error, assuming no
internal controls. C. Final evidence evaluation.

D. Inherent risk is the auditor's assessment of the likelihood that errors exceeding a tolerable D. Review for contingent liabilities.
amount exist in a segment before considering the effectiveness of internal controls.
36. Which of the following issues is more difficult to evaluate objectively?

A. Presentation of financial statements in accordance with generally accepted accounting

principles.

B. Compliance with government regulations.

C. Efficiency and effectiveness of operations.

D. All three of the above are equally difficult.

37. Audit evidence is more reliable when it is:

A. Generated from an ineffective internal control system.

B. Obtained from independent source.

C. In form of copy rather than original document.

D. In form of oral evidence rather than written evidence.

38. When the auditors are significantly restricted to obtain audit evidence and its effect is
pervasive on the financial statements, which opinion should the auditor generally issue?

A. Qualified.

B. Disclaimer.

C. Adverse.

D. Unqualified.

39. Analytical procedures are most likely to detect:

A. Weaknesses of a material nature in internal control.

B. Unusual transactions.

C. Noncompliance with prescribed control activities.

D. Improper separation of accounting and other financial duties.

40. What is the purpose of evaluating client background before the acceptance of audit
engagement

A. To identify types of potential material misstatement.

B. To obtain the evidence for the audit opinion.

C. To determine the need for legal protection.

D. To form the audit program.