DAY 6 RECAP - STAFF 2

Which statement is false?

• A. In assessing whether a deficiency in internal control is a significant deficiency (or material weakness if required to be communicated in the jurisdiction), we only consider quantitative factor that may indicate a potential misstatement in the financial statements.

• B. Different categories of a management letter comment/point are title, facts of the issue on hand, root-cause analysis, criteria/relevant accounting guidance and proposed solution.

• C. We also concern about ITGC deficiencies although ITGC deficiencies do not directly result in financial statement misstatements.

• D. None of above is false.

Which statement is false?

• A. When performing choosing sample size for test of detail, a sampling unit can be a customer account balance.

• B. Using the income statement (I/S) tables for sampling is mandatory.

• C. We care about the level of evidence obtained from the other substantive procedures and substantive analytical procedures performed.

• D. One of the IPE risk may be that the computations or categorizations performed in the creation of the IPE from the IT application are inaccurate.

• E. Not at all.

How to mitigate the First risk of IPE?

• A. Test controls within the SCOT to the extent appropriate for those controls.

• B. Test the system functioning of the GL Application once, if subject to effective/reliable IT processes.

• C. Verify through tests of details each time the Admin Expense Detail schedule is used (more likely/commonly done).

• F. A&B&C.

• E. A&C.

Which the statement is true?

• A. We must determine the completeness of meeting minutes of the meeting of share holder, BOM, BOD or other relevant

• B. Related party relationship and transaction can not be found in the meeting of shareholders.

• C. We read minutes of meeting in the phase of Strategy and Execution phase rather than conclusion phase

• D. All are false

Which statement is true about SRM?

• A. We must perform a comparison between the SRM and the ASM to ensure that all accounting and auditing issues in the ASM have been addressed during our audit and are noted within the SRM.

• B. The SRM is performed documented in the execution phase of an audit

• C. It provides the audit team with a summary of our audit results and conclusion, and a description of the important matters and significant findings and issues arising during the audit.

• D. A&C

• F. All of them

What is the purpose of quarterly meetings between the accounting group and the in-house counsel of SunnEY Secured Storage?

• A. Summary and evaluate all pending litigation and determine whether a reasonable likelihood exists that such a matter would result in an outflow of resources

• B. Evaluate pending litigation on any material case which is larger than threshold to determine if any items could potentially impact the financial statements

• C. Discuss about related parties list and transactions to assess whether a party is related party of the company, to ensure the completeness of financial statement disclosure

Which table is applied in determine sample size?

• A. Table 1

• B. Table 2

• C. Table 3

In mission 12, which company did we perform audit its financial statement?

• A. Bee ever young

• B. Door to Door Tropical Delivery

• C. Tropical Tees

• D. SunnEY Secured Storage

Which phase we must perform the financial statement tie-out procedures?

• A. Scope & Strategy

• B. Execution

• C. Wrap-up

• D. Subsequent event

Which components listed below are key pieces of the SRM? Choose all that apply:

• A. A description of significant changes to the audit strategy and the reasons for the changes

• B. A lengthy description of each significant accounting and auditing issue, including a summary of the identified significant and/or fraud risks

• C. Complex or unusual transactions

• D. A description of the inherent risks identified as higher and the reason why