QB13_Section tổng hợp

The external auditor of Pipe Ltd has set materiality thresholds such that items under £38,000 are not generally considered material. For the following item in Pipe Ltd's financial statements, select whether the auditor would usually test it for overstatement, for understatement, or not test it at all: £38,050 due from Nail Ltd, a credit customer of Pipe Ltd.

• Overstatement

• Understatement

• Not test

The external auditor of Pipe Ltd has set materiality thresholds such that items under £38,000 are not generally considered material. For the following item in Pipe Ltd's financial statements, select whether the auditor would usually test it for overstatement, for understatement, or not test it at all: Other income of £27,639.

• Overstatement

• Understatement

• Not test

The results of substantive audit tests at Clip plc are set out below. The materiality threshold set for these tests was £1,000. For the following result, select the action which should be taken by the audit senior: No misstatements found.

• Draw conclusion

• Refer to senior colleague

• Extend sample

The results of substantive audit tests at Clip plc are set out below. The materiality threshold set for these tests was £1,000. For the following result, select the action which should be taken by the audit senior: An arithmetical misstatement of £5,000 found.

• Draw conclusion

• Refer to senior colleague

• Extend sample

The results of substantive audit tests at Clip plc are set out below. The materiality threshold set for these tests was £1,000. For the following result, select the action which should be taken by the audit senior: A misstatement of £10 found, sanctioned by the finance director.

• Draw conclusion

• Refer to senior colleague

• Extend sample

Assurance providers obtain evidence using procedures, as set out in ISA (UK) 500, Audit Evidence. For the following statement, select whether it is most likely to be true or false: A major risk of misstatement of the trade receivables balance in the financial statements is of debts not being complete.

• True

• False

Assurance providers obtain evidence using procedures, as set out in ISA (UK) 500, Audit Evidence. For the following statement, select whether it is most likely to be true or false: The principal risk of misstatement of borrowings in the financial statements is of non-existent liabilities being declared.

• True

• False

Assurance providers obtain evidence using procedures, as set out in ISA (UK) 500, Audit Evidence. For the following statement, select whether it is most likely to be true or false: A major risk of misstatement of the inventories balance in the financial statements is of inventory being included in the financial statements at full value when it is obsolete or damaged.

• True

• False

At which two of the following business locations should auditors be particularly alert to the risk of money laundering?

• Car wash

• Manufacturer of upholstery

• Surveyors' offices

• Pawn shop

An audit assistant has been asked to obtain signed written representation from management at a client. The audit manager had previously discussed the written representations with the finance director who had agreed they would provide signed written representations. When asked by the audit assistant for the signed document the finance director stated that the board members had changed their mind about signing it because they believe some responsibilities listed as management responsibilities are auditor responsibilities. Which of the following is the most appropriate form of action for the audit assistant to take in respect of the board's refusal to provide signed representations?

• Refer the matter to a senior colleague

• Inform the finance director that unless signed representations are obtained, they will not receive an unmodified opinion in the auditor's report

• Inform the finance director that the firm will need to resign if the written representations are not provided in a timely manner

• Seek alternative evidence that management has accepted its responsibilities