Kiểm toán và Đảm bảo

Which TWO of the following are true in respect of related party transactions?

• Related party transactions tend to be low-risk to the auditor

• Disclosure of related party transactions is unlikely to be material to the financial statements

• Related party transactions must be completely disclosed in the financial statements

• There may be a significant control risk in relation to related party transactions

In the following case, select whether inherent is higher or lower than normal: The company operates in a slow - moving, stable industry

• Inherent risk higher than normal

• Inherent risk lower than normal

In each of the following case, select whether inherent risk is higher or lower than normal: Financial statements contain balances with straightforward Financial Accounting requirements

• Inherent risk higher than normal

• Inherent risk lower than normal

In the following case, select whether inherent is higher or lower than normal: The company has recently listed on the local stock exchange with high profit expectations from analysts.

• Inherent risk higher than normal

• Inherent risk lower than normal

For the following statements, select whether they are true or false in respect of the concept of materiality.

• True

• False

In each of the following case, select whether inherent risk is higher or lower than normal: The business of the company is cash - based

• Inherent risk higher than normal

• Inherent risk lower than normal

Audit risk can be a split into three components: inherent risk; control risk and detection risk. For each of the following examples, select the types of risk illustrated: The organisation is seeking to raise finance for a new venture

• Inherent

• Control

• Detection

Audit risk can be split into three components: inherent risk, control risk and detection risk. For the following example, select the types of risk illustrated: The organisation operates in a fast - moving, high tech environment

• Inherent risk

• Control risk

• Detection risk

Which two of the following would be used in understanding the entity in accordance with ISA 315?

• Industry, regulatory and other external factors

• A preliminary review of internal controls

• The results of tests of details

• The results of a review events after the date of the financial statements

Which three of the following would increase inherent risk

• Sample size have been calculated incorrectly by the auditor and are too small

• A significant number of balances are based on estimates

• The financial statements include complex transactions

• Audit staff are inexperienced

• A company is seeking to raise Finance