Which TWO of the following procedures would provide evidence of rights and obligations of motor vehicles?

• Vouching a sample of motor vehicles in the asset register to regitration documents
  
  

• Physical inspection of motor vehicles

• Review of purchase invoices for motor vehicles acquired in the period

• Confirmation that calculations on the non-current asset schedule are correct in respect of motor vehicles

Direct confirmation of trade receivables provides evidence in respect of which TWO of the following assertions?

• Existence
  

• Valuation
  

• Rights and obligations
  

• Completeness
  

• Occurrence

Which TWO of the following procedures are MOST appropriate to confirm the valuation of trade receivables?

• Review of the receivables ledges
  
  
  

• Direct confirmations with customers
  

• Review of cash paid after date
  

• Review of sales invoices

Which TWO of the following are reasons why sales are of verified by testing the internal controls in place over sales?

• 
  There are usually too many individual transactions to test them individually
  

• Sales constitute a high volume of similar transactions which are suitalbe for controls testing
  

• Controls over sales in a company are often strong
  

• Because there are so many individual transactions, there is a significant risk that sales are misstated

Which TWO of the following assertions is the auditor most conserned with when testing property, plant and equipment?

• Occurrence
  

• Existence
  

• Classification
  

• Rights and obligations
  

• Accuracy

Which three of the following describe aspects of the expectations gap with respect to
the external audit.

• Users do not understand the meaning of the audit opinion

• Users do not aware of the limitations of the audit process

• Users do not appreciate that reasonable assurance is a low level of assurance

• Users do not understand what the audit process involves

Which three of the following are key elements of a general assurance engagement?

• A user

• A subject matter

• Suitable criteria

• An assurance file

Which THREE of the following procedures should be carried out after the audit firm has decided to accept appointment as auditor?

• Ensure that the outgoing auditors' removal/resgination has been properly conclucted
  

• Ensure that a resolution has been passed at the general meeting to appoint the new auditors
  

• Perform checks to ensure that there are no legal or ethical reasons why the new audit firm cannot act as auditor
  

• Submit a letter of engagement to the directors

Which THREE of the following are purposes of a letter of engagement?

• Setting out the form of any report to be issued
  

• Providing constructive suggestions to management concerning improvements in internal control
  

• Documenting and confirming acceptance of the appoitment
  

• Narrowing the expectations gap
  

• Providing evidence on matters where other evidence is not expected to exist

With respect to ISA 315, which three of the following procedures shall be used in understanding the entity and its environment

• Inquiries of management and others within the entity

• Inquiries the third party

• Analytical procedures

• Observation and Inspection