Day 5 - Planning Quiz

What system do we use to create our engagement letters?

• OnePlace

• Inflo

• OneDoc

• AAA

What benchmark would we use for a trading entity with low profit margins?

• PBT

• Revenue

• Total assets

Which TWO of the following INTERNAL factors may REDUCE our threshold for PM?

• Significant user interest in the financial statements

• Complex estimates with high estimation uncertainty

• Unstable economic environment

• Lots of prior year audit misstatements

In which two areas must we understand and document the business processes?

• Financial Reporting Process

• Significant risks only

• Where we intend to rely on controls

• Significant classes of transactions, account balances and disclosures (SCOT+)

When must we document our understanding of controls?

Select THREE.

• Journals

• Significant risks

• Risks when we intend to test the operating effectiveness of controls

• All SCOT+ items

What three categories can risk factors fall into?

• Error

• Fraud

• Going concern

• Journals

Which THREE of the following assertions relate to the statement of financial position?

• Completeness

• Occurence

• Valuation

• Existence

How would you scope payroll in the following scenario:

1. 1. It does not contain a risk of material misstatement

2. 2. It is material

3. 3. It is not a financial statement line item

• Significant risk

• SCOT+

• Material only

• Other

Which of the following are PRESUMED significant risks?

• Going concern

• Impairment of complex intangibles

• Management override of controls

• Risk of fraud within revenue recognition

If an estimate has high estimation uncertainty, what is the minimum scoping level?

• Significant risk

• SCOT+

• Material only

• It has no impact