CFAB 2 - Chapter 10

Which THREE of the following are reasons why assurance providers record their work?

• A. To confirm the terms of the engagement

• B. To help the assurance team to plan and perform the engagement

• C. To retain a record of matters of continuing significance to the engagement

• D. To enable an experienced assurance provider to carry out quality control reviews

Which THREE of the following should working papers show?

• A. The name of the client

• B. The date the work was planned

• C. The date the work was carried out

• D. The date the work was reviewed

• E. The initials of the person supervising the work

Which TWO of the following are likely to be kept on a permanent audit file?

• A. Engagement letter

• B. Planning memorandum

• C. Review notes

• D. Previous year's signed financial statements

• E. Current year's draft financial statements

Many auditors use two types of audit file: a current audit file and a permanent audit file.

For each of the following documents, select whether it is most likely to be included in the current audit file, permanent audit file or in both.

Engagement letter

• Current audit file

• Permanent audit file

• Both

Many auditors use two types of audit file: a current audit file and a permanent audit file.

For each of the following documents, select whether it is most likely to be included in the current audit file, permanent audit file or in both.

Audit plan

• Current audit file

• Permanent audit file

• Both

Many auditors use two types of audit file: a current audit file and a permanent audit file.

For each of the following documents, select whether it is most likely to be included in the current audit file, permanent audit file or in both.

Manager review notes

• Current audit file

• Permanent audit file

• Both

Which THREE of the following documents would be held on a current audit file?

• A. Details of the history of the client's business

• B. Communications with experts

• C. Audit file review notes

• D. Copies of management accounts

• E. Lease agreements

For each of the following statements, select whether they are true or false.

1. 1. Working papers should be stored in locked premises.

2. 2. An auditor can destroy the audit plan relating to Jacobs Ltd for the year ended 30 June 20X3 in 20Y0.

3. 3. Working papers belong to the client and may be stored at their premises.

• A. True - False - True

• B. False - True - False

• C. True - True - False

• D. False - False - True

For each of the following, select whether or not they are valid reasons for preparing audit working papers.

1. 1. To help the audit team to plan and perform the audit.

2. 2. To enable the auditor to charge a higher fee.

3. 3. To prove adherence to ISAs.

• A. Valid - Not valid - Valid

• B. Valid - Valid - Not valid

• C. Not valid - Not valid - valid

• D. Not valid - Valid - Valid

The assurance provider will prepare documentation in relation to the fieldwork carried out on an assurance engagement.

For each of the following, select whether or not they are valid reasons for the preparation of such documentation.

1. 1. To help in establishing this year's overall audit strategy.

2. 2. To help in this year's review process.

3. 3. To provide a record of evidence gathered to support the conclusions reached.

• A. Not valid - Not valid - Valid

• B. Not valid - Valid - Valid

• C. Valid - Valid - Not valid

• D. Valid - Valid - Not valid