AA tutorial 9

Indicate whether the procedures identified by James above will be conducted during the interim or the final audit. (1) Update documentation relating to Carlise's accounting systems which has been prepared in prior year audits.

• Interim audit

• Final audit

Indicate whether the procedures identified by James above will be conducted during the interim or the final audit. (2) Obtain third-party confirmations relating to receivables, payables and cash at bank.

• Interim audit

• Final audit

Indicate whether the procedures identified by James above will be conducted during the interim or the final audit. (3) Review the directors' assessment of whether Carlise is a going concern. Consider whether the assumptions made by the directors are reasonable and whether it is appropriate to prepare the accounts on the going concern basis.

• Interim audit

• Final audit

Indicate whether the procedures identified by James above will be conducted during the interim or the final audit. (4) Perform preliminary analytical procedures in order to identify any major changes in the business or unexpected trends.

• Interim audit

• Final audit

Which of the following should be taken into account when determining the extent of the additional work needed at the final audit? (1) The significance of the assessed risks of material misstatement at the assertion level

(2) The specific controls that were tested during the interim period, and significant changes to them since they were tested, including changes in the information system, processes, and personnel

(3) The length of the remaining period

• 1 and 2 only

• 2 and 3 only

• 1 and 3 only

• 1, 2 and 3

Which of the following considerations is the MOST important when deciding whether or not to rely on the work performed by Carlise's internal audit department?

• Whether any members of Carlise's internal audit department hold a professional qualification

• Whether the work performed by the internal audit department relates to specific audit assertions over which UYE & Co has concerns

• Whether a separate audit committee exists

• Whether Carlise's internal audit department has a work plan which schedules the work they should perform to the end of the year

Indicate which of the following statements are true, if direct assistance is used? A. Carlise’s internal auditors would perform audit procedures under the direction, supervision and review of UYE & Co’s audit team

• true

• false

Indicate which of the following statements are true, if direct assistance is used? B. UYE & Co should only use direct assistance if the risk of material misstatement in relation to the online ticket sales system is high

• true

• false

Indicate which of the following statements are true, if direct assistance is used? C. UYE & Co’s audit team should document its review of the work performed by Carlise’s internal auditors

• true

• false

Indicate which of the following statements are true, if direct assistance is used? D. Carlise’s internal auditors will be separately liable for any material misstatements in the work they have performed

• true

• false