ICAEW Assurance Mock Exam

Front

Your client has a pending lawsuit, but management refuses to disclose it in the financial statements. What should you do?

Back

Assess whether disclosure is required under IAS 37

Front

The audit team finds that revenue is being recognized before goods are delivered. What should you do?

Back

Verify whether it complies with IFRS 15

Front

A senior accountant has unrestricted access to both recording and approving payments. What is the key audit risk?

Back

Fraud due to lack of segregation of duties

Front

Your client values inventory at cost, even when the net realizable value is lower. What should you do?

Back

Adjust the inventory valuation per IAS 2

Front

A company is experiencing significant cash flow difficulties. What should you do?

Back

Include a going concern uncertainty paragraph in the audit report.

Front

During payroll testing, you find employees receiving salaries who do not exist. What should be your first action?

Back

Perform additional audit procedures to confirm fraud risk

Front

Your client's CEO offers you free tickets to an exclusive business event in exchange for a favorable audit report. What is your response?

Back

Politely decline and document the offer

Front

A client has not disclosed a related party transaction in its financial statements. What should you do?

Back

Discuss it with management and determine if disclosure is required

Front

The CFO suggests you overlook a minor misstatement to speed up the audit. What should you do?

Back

Perform additional procedures to assess materiality

Front

An audit team member owns shares in the client's company. What is the main concern?

Back

A breach of auditor independence rules