Câu ĐK

Which of the following is NOT a control activity?

• Authorisation

• The control environment

• Physical controls

• Reconciliations

Which of the following most likely would give the most assurance concerning the valuation assertions of account receivable?

• Tracing amounts in the subsidiary ledger to details on shipping documents

• Comparing receivable turnover ratios to industry statistics for reasonableness

• Inquiring about receivables pledged under loan agreements

• Assessing the allowance for uncollectible accounts for reasonableness

Which of the following statements regarding responsibility for fraud are true? (1) Only those charged with governance are responsible for the prevention and detection of fraud. (2) Both those charged with governance and management are responsible for the prevention and detection of fraud. (3) Auditor is responsible for detecting any material fraud.

• 1 and 3

• 1 only

• 2 only

• 2 and 3

Based on our review, nothing has come to our attention that causes us to believe that the accompanying financial statements do not present fairly, in all material respects... in accordance with International Financial Reporting Standards. Which of the following BEST describes the type of assurance provided by this statement?

• Positive assurance expressed negatively

• Negative assurance expressed positively

• High level of assurance expressed negatively

• Limited level of assurance expressed negatively

Which of the following statements is NOT true regarding the purpose of risk assessment in planning audit?

• The risk assessment will help the audit team gain an understanding of the entity for audit purposes

• The risk assessment will enable the audit senior to produce an accurate budget for the audit assignment

• The risk assessment will form the basis of the audit strategy and the detailed audit plan

• Once the risks have been assessed, audit firm can select audit team members with sufficient skill and experience to maximize the chance of those risks being addressed

Ranking the reliability of the following items of audit evidence from best (1) to worst (4): 1. Bank statement provided by the bank 2. The finance director says an invoice has been paid 3. A list of unpaid invoices extracted from the client’s accounting records 4. A customer confirms his balance in response to a telephone enquiry.

• 1, 2, 3, 4

• 1, 3, 4, 2

• 1, 4, 3, 2

• 1, 4, 2, 3

Which of the following statements about 'Other matter' paragraph in an auditor’s report is true?

• It is alternative name for an 'Emphasis of matter'

• It is used to draw attention to matters that is appropriately disclosed in the financial statement.

• It may be used to draw attention to matters that are most significant to the audit.

• It is used to draw attention to matters which is fundamental to understanding the audit and has not been presented or disclosed in the financial statement.

All transactions that were supposed to be recorded have been recognized in the financial statement. Which assertion does the statement explain?

• Occurrence

• Presentation and disclosure

• Completeness

• Valuation or allocation

According to the audit risk model: When inherent risk is high and control risk is high, detection risk will be _____ and the level of substantive procedures required will be _____. Which of the following fills the blanks to complete the sentence correctly?

• high, increased

• high, decreased

• low, increased

• low, decreased

Auditors should comply with relevant laws and regulations and avoid any action that discredits the profession. Which of the following principles of IESBA’s code of ethics does this statement mention?

• Integrity

• Objectivity

• Professional competence and due care

• Confidentiality

• Professional behaviour