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WorksheetsAA ACC4201 Quiz 4
Total questions: 25
Worksheet time: 13mins
Internal and external audit are similar in that:
Both services can be provided by in-house and external providers
Neither are statutorily required in Malaysia
Both provide independent assurance
Both report to shareholders
Which of the followings are components of the definition of internal auditing?
Provide assurance and consulting activities
Not required to follow Standard Operating Procedures
Provide additional values to the organization
Concentrate on attesting the accuracy of the financial reports only
Which of the following statement is TRUE about internal auditors?
Not directly involved with the prevention and detection of fraud in the organization
Serve the needs of the organizations
Report to the shareholders
Compulsory to have professional qualifications
To ensure the internal auditors can render impartial or unbiased opinions during audit engagements, they shall:
Not involve in day-to-day operations of the organization
Not involve in activities that will lead to any conflict of interest
Not make management decisions
Not report to the CEO of the organization
1.Auditing includes all of the following except:
A. A systematic process.
B. An objective obtaining and evaluating evidence.
C. Ascertain the degree of correspondence between Assertions and financial statements.
D.Communicates the results to interested users
The level of assurance provided by an external audit is absolute.
Is this statement true or false?
True
False
Which of the following is an element of an assurance engagement?
An appropriate subject matter
Positive assurance
Analytical review
Which two of the following are elements of an assurance engagement?
(1) A three-party relationship
(2) Suitable criteria
(3) Determination of materiality
(4) An engagement letter
1 & 3
1 & 2
2 & 3
1, 2 & 3
2 & 4
Who normally appoints the external auditors of a company?
Directors
Shareholders
Audit committee
Senior management
1. What is the best definition of Corporate Governance?
1. The internal structure designed to allow the organisation to comply with laws and regulations
2. A commitment to economic development by working with stakeholders to improve their lives
3. A set of tools to help management run the day to day activities of the business
4. The same as Corporate social responsibility
5. A system by which the organisation is directed and controlled on behalf of its stakeholders
2.Who should have overall responsibility for Corporate Governance?
1. Risk Management
2. The Board
3. Internal Audit
4. The Strategy Department
5. The Compliance function
10. Which of the following is NOT a Governance role of the Audit Committee?
1. Overseeing the relationship between Internal and External Audit
2. Giving instructions to the Head of Internal Audit
3. Overseeing the financial reporting process
4. Ensuring key regulatory and legal requirements are met
5. Representing the major stakeholders
What's ethics all about?
An ethnic minorit
A person who's a bit daft
Morally correct behaviour
Making lots of money out of customers, bleeding them dry!
code of conduct is derived from?
moral values
personal ethics
professional ethics
WHICH IS NOT CODE OF ETHICS FOR AUDITORS?
A RULES FOR AUDITORS TO FOLLOWS
A VALUE AND PRINCIPLES THAT GUIDE AUDITORS
AN AUDIT PROGRAMME TO FOLLOW BY AUDITORS
VIEW OF PROFESSIONALS AND RESPONSIBILITIES OF AUDITORS
Rendering of a conclusion without being affected by influences that comprise professional judgement.
THIS STATEMENT REFERS TO:-
INDEPENDENCE IN APPEARANCE
INDEPENDENCE OF MIND
Avoidance of facts and circumstances that are so significant that a reasonable and informed third party would reasonably conclude the integrity, objectivity or professional skepticism had been compromised
THIS STATEMENT REFERS TO:-
INDEPENDENCE IN APPEARANCE
INDEPENDENCE OF MIND
Ethic refers to _____________
a set of moral principles, especially ones relating to or affirming a specified group, field or form of conduct.
well-founded standards of right and wrong that prescribe what humans ought to do.
concerned with what is good for individuals and society and is also described as moral philosophy.
all of the above
A professional accountant’s responsibility is to satisfy the needs of _________
individual client
the public interest
employer
supplier
Steps in the conceptual framework requires a professional accountant to ___________ to compliance with the fundamental principles.
Evaluate, identify and address threats
Address threats, identify and evaluate threats
Identify, evaluate and address threats
There are ______ fundamental principles that a professional accountant is required to comply with.
3
4
5
6
Below are the fundamental principles of professional accountants EXCEPT ___________
Objectivity
Confidentiality
Hard working
Professional Behavior
Professional Behavior means _____________
A professional accountant should comply with relevant laws and regulations and should avoid any action that discredits the profession.
A professional accountant should not allow bias, conflict of interest or undue influence of others to override professional or business judgments.
A professional accountant should be straightforward and honest in all professional and business relationships.
A professional accountant should respect the confidentiality of information acquired as a result of professional and business relationships.
Advocacy threats may occur ________________
when a professional accountant may be deterred from acting objectively by threats, actual or perceived
when a professional accountant promotes a position or opinion to the point that subsequent objectivity may be compromised
when, because of a close relationship, a professional accountant becomes too sympathetic to
the interests of others
when a previous judgment needs to be re-evaluated by the professional accountant responsible for that judgment
Which of the following would be considered a self-interest threats?
a member of the audit team has a close family member who is a director or officer of the client.
acting as the client's lawyer in a legal proceeding.
when a member of the audit team was a previously an officer of the client.
