Audit review quiz

Who runs a company

• The directors

• The shareholders

• The auditors

• The accountants

What are the business objectives that the directors must meet?

• Operational objective

• Compliance objective

• Reliable reporting objective

• Going concern objective

What do we call the things that get in the way of management achieving their goals?

• Risk of material misstatement

• Audit risk

• Business risks

• Nothing

If I ask you to identify business risks, which of the following do you write?

• Indicator + consequence

• Impact on the financial statements

• Business objective impacted

• Assertion affected

What can management do to mitigate these business risks?

• Ignore them

• Implement controls

• Transfer the risk to someone else

• Accept the risk

Are all controls important for the company?

• Yes

• No

Are all controls important for the auditor?

• Yes

• No

Select the control objectives

• Accuracy

• Presentation

• Validity

• Completeness

Management makes certain promises about the financial statements. We call these?

• Objectives

• Control activities

• Assertions

• Risks

If I ask you to write a risk of material misstatement, which of the following do you write?

• Indicator + consequence

• Impact on financial statements

• Business objective

• Assertion affected