Audit 1 24 Maret 2023

Efficiency of the audit team, can be improved at the planning stage by...

• Focussing on risk areas

• Highlighting the importance of the audit

At the planning stage, the scope of the audit will be determined by the reporting framework applied as well as _________ ?

• Any industry specific requirements

• Any management requests

1.Time spent planning the audit to ensure it is carried out efficiently will reduce the time taken and thus the cost. 

2.The auditor will want to ensure that the correct team is in place to conduct the audit, they are working efficiently and that work is focused on material areas of risk and potential problem areas.

• both statements are true

• both statements are false

• statement 1 is false

• statement 2 is false

The _______ sets out the scope, timing and direction of the audit.

• Audit strategy

• engagement letter

• risk assessment

• none of the choice

Which file brings forward knowledge of the business?

• Permanent

• Current

The planning section will be found in which file?

• Permanent

• Current

What is most likely to happen at the planning stage?

Discuss with management about ..

• Co-ordination of client staff for data preparation

• Which control weaknesses to go in the management letter

1. The current file contains the evidence and documents relevant to the current year.2.The permanent file kept by the audit firm will bring forward a lot of the knowledge of the business, but this must be kept up to date.

• both statements are true

• both statements are false

• statement 1 is false

• statement 2 is false

Which of the following is not a stage in the planning process?

• Establish materiality levels

• Undertake analytical review

• Assess the risks involved with the business

• Establish tolerable error for material errors

• Preparing the financial statements

Which of the following will be found in the audit strategy document?

• Whether computer-assisted audit techniques will be used

• How much audit evidence obtained in previous audits will be used

• The availability of key personnel

• If the accounts have been prepared in accordance with IFRS

• all of the choices