WorksheetsAudit 2 | Revision 1
Total questions: 15
Worksheet time: 5mins
Professionalism refers to a system or code of conduct based on moral duties and obligations that indicate how an individual should behave in society.
True
False
Rights-Based Approach assumes that individuals have certain rights and other individuals have a duty to respect those rights when making decisions.
True
False
One of the followings is not one of the elements under IFAC Code of Ethics and Conduct:
Integrity
Subjectivity
Confidentiality
Professional behaviour
Auditors’ and accountants’ liability can arise from ____________ branches of the law.
two
four
three
six
Auditors’ liability can be categorised under the following headings:
Liability arising under legislation.
Liability arising from negligence.
law arising from subsidiary duties.
2 options are correct.
All options are correct.
One of these statutes is not intended to safeguard the interest of the shareholders and depositors:
Companies Act 1965
The Securities Commission Act 1193
Financial Institution Act 1989
Banking and Financial Institution Act 1989
Auditors do provide guarantee that there’s some risk that the financial statements are not fairly stated when the opinion is unqualified.
True
False
Preliminary judgment about __________________ is the ____________ amount auditor believes the statements could be misstated and still not effect the decision making of reasonable users.
materiality ; minimum
performance materiality ; maximum
materiality ; maximum
performance materiality ; minimum
The following(s) is/are common bases for evaluating materiality:
Turnover/Sales
Gross profit
Total assets
All options are correct.
In regards to post balance sheet events, there are ______ types of event defined by IAS 10
three
five
two
four
Until the auditor's report is signed auditors have a/an __________ duty to look out for events that might tell them more about the financial statements.
active
passive
both options are correct.
both options are incorrect.
Auditors have a responsibility to review subsequent events before they sign the auditor's report.
True
False
The principal auditors have the rights and powers:
in respect of their audit of the holding company.
to require from the other auditors such information and explanations as required.
to require the parent company to take all the reasonable steps to obtain reasonable information and explanations from the subsidiary.
All options are correct.
The group auditor has the sole responsibility for expressing an audit opinion on the group financial statements.
True
False
The following(s) is/are benefit(s) of a joint audit approach:
Auditor knowledge about each part of the group is wasted.
A larger pool of resources available to carry out the audit.
They might clash over the audit opinion.
Client would have to pay for two auditors.
