AAA G2

Which of the following are standards issued by the International Auditing and Assurance Standards Board?

• International Accounting standards

• International Standards on Quality Management

• International Code of Ethics for Professional Accountants

• International Standards on Assurance Engagements

Which of the following combinations best represent the components of assurance engagement risk?

• Control risk

• Business risk

• Inherent risk

• Detection risk

How should professional accountants respond to threats to compliance with the fundamental ethical principles?

• By ignoring the threats if they are not significant

• By implementing safeguards to eliminate or reduce the threats

• By resigning from the client

• By reporting the threats to regulatory agencies

What is the threat when a professional accountant pays or receives a referral fee or commission relating to a client?

• Intimidation threat

• Advocacy threat

• Self interest threat

• Familiarity threat

What is the objective of monitoring in the context of audit quality?

• To ensure the engagement team is properly supervised

• To identify and address engagement performance problems

• To improve the scalability of audit procedures

• To maintain a hierarchy of review within the firm