EY - SCOT

Professional skepticism requires 

auditors to possess a(n) ______ mind. 

• Narrow

• Questioning

• Distracted

• Agreeing

When you consider the flow of information in the critical path, what is the correct order of the events? Select the correct answer.

• Initiated; Processed; Recorded; Reported.

• Reported; Processed; Initiated; Recorded.

• Initiated; Recorded; Processed; Reported.

• Initiated; Recorded; Reported; Processed.

There is a difference between a significant account and a SCOT

• Yes

• No

Professional skepticism means that when management makes a statement to you, as an auditor, you should:

• Disregard the statement because it does not represent sufficient appropriate audit evidence

• Believe the statement to maintain the client relationship.

• Require the statement be put in writing so you can complete your audit documentation

• Corroborate the statement with other audit evidence

What is the materiality amount at an account level referred to as?

• Planning Materiality

• Tolerable Error

• SAD

• Nominal Amount

• Are all purchases received recorded?

• This WCGW questions is relevant to which assertion relating to the purchase of inventory.

• Completeness

• Existence

• Occurrence

• Presentation and disclosure

In the critical path of the sales SCOT, we may ask the following different WCGW questions about a sales invoice:

• • Is the quantity correct?

• • Is the sales price correct?

• • Is the tax percentage correct?

• • Is it calculated correctly?

A significant account is an account that has a reasonable possibility of containing a material misstatement based on:

• its size (i.e., materiality of the account to the financial statements as a whole)

• that has a risk of material misstatement associated with it.

• Manager's decision

• Senior's decision

Limited risk accounts:

• • There are no significant risks associated with the account

• • The account balance is unlikely to influence the economic decisions of the users of the financial statements

• • The account is subject to low complexity, subjectivity, and uncertainty

• • The account is affected by a significant unusual transaction