Daily Quizz L1 - L3

Who is responsible for the true and fair representation of the amounts and disclosures included in the financial statements?

• 
• 

The basic objective of an audit of financial statements is to?

• A. Prepare the audited financial statements in accordance with the applicable financial reporting framework.

• B. Test all transactions to prevent and or detect fraudulent transactions initiated by management or the entity’s employees.

• C. Obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement.

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

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

• B. Believe the statement to maintain the client relationship.

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

• D. Corroborate the statement with other audit evidence.

Which one of the below is an external resource available at EY to understand the client?

• A .Google.

• B. Factiva.

• C. EY Knowledge CHS

• D. Atlas.

• E. EY GAM

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

• A. Planning Materiality.

• B. Tolerable Error.

• C. Nominal Amount.

• D. SAD.

• E. Error Percentage.
  
  F. Audit Risk Percentage.

Planning materiality is simply a mathematical equation and does not require significant professional judgement –

• YES

• NO

For the Accounts Payable – Rights & Obligations assertion, if your inherent risk is Higher and you are taking a Rely on controls strategy, what is your Combined Risk Assessment (CRA) for the Rights & Obligations assertion?

• A. Minimal.

• B. Low.

• C. Moderate.

• D. High.

• E. None of the above