1st one

Is the following statement regarding stewardship true or false?  

 Directors are stewards of the investment made by shareholders in a company.

• True

• False

Which two of the following are elements of an assurance engagement?  

(1) A three-party relationship  

(2) Suitable criteria  

(3) Determination of materiality  

(4) An engagement letter  

• (1) and (2) only  

• (1) and (3) only  

• (2) and (3) only  

• (1) and (4) only

What is the correct order of the following stages involved in the development of an ISA?  

(1) Distribution of exposure draft for public comment  

(2) Consideration of comments received as a result of the exposure draft  

(3) Approval by IAASB members  

(4) Establishment of task force to develop draft standard  

(5) Discussion of proposed standard at a public meeting  

• (1), (5), (4), (3), (2)  

• (3), (4), (1), (2), (5)  

• (4), (5), (1), (2), (3)  

• (5), (4), (2), (1), (3)

Which of the following is/are not a statutory right of the auditors of a limited liability company?  

(1) A right to attend all directors' meetings and receive all notices and communications relating to such  meetings.  

 (2) A right to speak at general meetings on any part of the business that concerns them as auditors.  

(3) A right to attend any general meeting and receive all notices and communications relating to such  meetings.  

• (1) only

• (1) and (3)  

• (2) only

• (2) and (3)

Is the following statement true or false?  

           In an effective system of corporate governance the directors take responsibility for risk management  strategies within the business.  

• True

• False

Which of the following are recognised threats to independence and objectivity as identified in ACCA's Code  of Ethics and Conduct?  

(1) Familiarity  

(2) Self-interest  

(3) Integrity  

(4) Advocacy  

• (2) and (4) only

• (2), (3) and (4)  

• (1), (2) and (4)  

• (2) and (4) only

Andrew Jones has been the key audit partner of X Co, a public interest entity, for seven years. For how long  must he be rotated off the audit as a minimum to comply with ACCA's Code of Ethics and Conduct?  

• 1 year  

• 2 years  

• 3 years  

• 4 years

AAB & Co is the statutory auditor of Y Co, a public interest entity.  

Which of the following services is AAB & Co prohibited from providing to Y Co under any circumstances?  

A Provision of

• Provision of bookkeeping services  

• Assistance in the resolution of tax disputes  

• Internal audit services  

• Valuation services where the valuation will have a material effect on the financial statements  

Who is ultimately responsible for a company's system of internal controls?  

• External auditors  

• Board of directors  

• Internal auditors  

• Audit committee

Every company must have an audit committee.  

Is this statement true or false?  

• True  

• False