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ISA-Chap 2

Total questions: 10

Worksheet time: 6mins

Name
Class
Date
1.

Which one of the following is not one of the primary purposes of audit documentation?

a)

A basis for determining work deficiencies by peer review teams.

b)

A basis for review by supervisors and partners

c)

A basis for planning the audit.

d)

A record of the evidence accumulated and the results of the tests

2.

What is the overall objective of audit working papers?

a)

Provide a basis for reviewing the work of subordinates.

b)

Defend against claims of a deficient audit.

c)

Provide reasonable assurance that the audit was conducted in accordance with standards.

d)

None of the above.

3.

Those procedures specifically outlined in an audit program are primarily designed to

a)

test internal systems

b)

gather evidence

c)

detect errors or irregularities

d)

prevent litigation

4.
Which are the objective of audit sampling ?
a)
To obtain a sample that is representative of the population
b)
The number of population items selected when a sample is drawn from a population
c)
The individual items constituting a population
d)
To discuss the two approaches in audit sampling approaches before discussing how to obtain a representative sample  
5.
Below are the advantages of statistical sampling, except ;
a)
Allows estimation of errors to be made
b)
The sample result is objective and defensible
c)
simple to use and more cost effective than non-statistical approach
d)
The sample size is objectively determined
6.

A written understanding detailing what the auditor expects from the client in performing an audit will normally be expressed in the

a)

management letter requested by the auditor

b)

engagement letter

c)

audit Plan

d)

audit Strategy for the client

7.

The purpose of an engagement letter is to

a)

document the CPA firm's responsibility to external users of the audited financial statements.

b)

document the terms of the engagement

c)

notify the audit staff of an upcoming engagement so that personnel scheduling can be facilitated

d)

emphasize management's responsibility for approving the audit program

8.

Which of the following is NOT an element of audit report?

a)

Recommendations

b)

Audit program

c)

Objectives, timing and scope of audit

d)

Description of findings

9.

Below are the information that are collected or reviewed during fieldwork EXCEPT

a)

Memo-to-file

b)

Reports

c)

Manuals and directives

d)

Organization chart

10.

What is the function of Audit Program?

a)

A document issued to auditee management to record the findings

b)

Assessment made by internal auditors about audit issues

c)

A detailed step-by-step procedures to be followed during an audit

d)

A detailed outline of the auditor's plans and procedures in conducting audit