F8 (1)

 The sufficiency of audit evidence is the measure of

• 1. Quality of audit evidence

• 1. Quantity of audit evidence

• 1. Reliability of audit evidence

• All of those above

Which of the following is not a financial statement assertion?

• Completeness

• Occurrence

• Cash flow

• Existence

Which of the following is not an account balance assertion?

• Completeness

• Occurrence

• Valuation

• Existence

‘Audit risk’ represents the risk that the auditor will give an inappropriate opinion on the fianancial statement following categories of risk can be controlled by the auditor? Category of risk:

1. (1) Control risk

2. (2) Detection risk

3. (3) Sampling risk

• (1) & (2)

• (2) only

• (1) & (3)

• (2) & (3)

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

• Risk asssesment procedures

• Client acceptance

• Observation

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

• 1. Absolute assurance

• 1. Negative assurance

• 1. Limited assurance

• Reasonable assurance

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

• 1. The indepentdent examination of expression of opinion on the fianancial 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 appoinment

• 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 statemants.

The level of assurance provide by an external audit is absolte.Is this statement true or false?

• True

• False

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

• Inherent risk, control risk and detection risk

• Detection risk only

• Inherent risk and control risk

• Control risk only