F8 (C1-40)

The audit evidence obtained from the reliable source is always appropriate. The statement is:

• TRUE

• FALSE

The sufficiency of audit evidence is the measure of

• 1. Quality of audit evidence

• 1. Quantity of audit evidence

• 1. Reliability of audit evidence

• 1. All of those above

Which of the following is not a financial statement assertion?

• 1. Completeness

• 1. Occurrence

• 1. Cash flow

• 1. Existence

Which of the following is not an account balance assertion?

• 1. Completeness

• 1. Occurrence

• 1. Valuation

• 1. Existence

The definition of the risk material misstatement is “Inherent Risk x Control Risk x Detection Risk”

• TRUE

• FALSE

In conducting an audit, the state audit should not implement:

• 1. Risk assessment procedures

• 1. Client acceptance

• 1. Observation

• 1. Inquiry

Which of the following must be included in an audit engagement letter?

• 1. Arrangements concerning the use of experts

• 1. Obligations to make audit working papers available to other parties

• 1. Expected form and content of any reports

• 1. Basis on which fees are computed

Which of the following is NOT a level of assurance provided by an assurance engagement?

• 1. Absolute assurance

• 1. Negative assurance

• 1. Limited assurance

• 1. Reasonable assurance

Which of the following is the correct definition of an audit?

• The independent examination of expression of opinion on the financial statements of an entity by a duly appointed auditor in pursuit of that appointment

• 1. The examination and certification of opinion on the FSs of an entity by a duly appointed auditor in pursuit of that appointment

• 1. The process by which the director can state that the FS show a true and fair view 

• 1. The process that produces a report stating that nothing has been found wrong in the financial statements.

Audit procedures performed by the auditor will reduce which of the following risks?

• 1. Inherent risk, control risk and detection risk

• 1. Detection risk only

• 1. Inherent risk and control risk

• 1. Control Risk only