Free Printable Audit ACCA Pertemuan 5

1.

Audit partner has been in position for eight years

a)

Familiarity

b)

Self-Interest

c)

Self-Review

2.

Partner's son may hold shared in Maldini Co

a)

Familiarity

b)

Self-Interest

c)

Self-Review

3.

Maldini Co has asked Buffon & Co to carry out internal audit work

a)

Familiarity

b)

Self-Interest

c)

Self-Review

4.

Fee will be 20% of profit after tax

a)

Familiarity

b)

Self-Interest

c)

Self-Review

5.

If the internal and external audit assignments are accepted, what safeguards, if any, are needed in relation to the basis for the fee?

a)

As long as the total fee received from Maldini Co is less than 15% of the firm's total fee income then no safeguards are needed

b)

The fees should be based on Maldini Co's profit before tax

c)

The client should be informed that only the internal audit fee can be based on profit after tax

d)

No safeguards can be applied and this basis for fee determination should be rejected

6.

Audit Team to be offered a baloon flight

a)

Advocacy

b)

Intimidation

c)

Self-Interest

7.

Tax Fee to be based on a percentage of tax saved

a)

Advocacy

b)

Familiarity

c)

Self-Interest

8.

Firm to represent stark in a dispute with tax authorities

a)

advocacy

b)

intimidation

c)

self-interest

9.

In relation to the audit team being offered a balloon ride:

Which of the following actions should be taken to ensure the firm complies with ACCA's Code of

Ethics and Conduct?

a)

The gift may be accepted as Stark has taken appropriate measures to reduce the

value of the gift compared to previous years.

b)

The value of the gift should be assessed to determine whether it is of material value

to the financial statements.

c)

The gift should only be accepted if its value is trivial and inconsequential to the

recipients.

d)

Only the audit engagement partner and audit manager should accept the gift.

10.

In relation to the audit engagement partner holding the role for nine years:

Which of the following safeguards should be implemented in order to comply with ACCA's

Code of Ethics and Conduct?

a)

An independent review partner should be appointed to the audit.

b)

The audit engagement partner should be removed from the audit team but may

serve as a quality control reviewer.

c)

Ali & Co should not audit Stark for a five-year period.

d)

The audit engagement partner should be removed from the audit team.

11.

Zoe is also concerned that Ali & Co might breach confidentiality were the audit firm to

represent Stark in its dispute with the tax authorities.

Which of the following statements best reflects the auditor's duty of confidentiality?

a)

Auditors must never, under any circumstances, disclose any matters of which they

become aware during the course of the audit to third parties, without the permission

of the client.

b)

Auditors may disclose any matters in relation to criminal activities to the police or

taxation authorities, if requested to do so by the police or a tax inspector.

c)

Auditors may disclose matters to third parties without their client's consent if it is in

the public interest, and they must do so if there is a statutory duty to do so.

d)

Auditors may only disclose matters to third parties without their client's consent if the

public interest or national security is involved.

12.

(1) The audit team has been offered a discount on luxury phones.

(2) The audit senior was seconded to LV to cover for the financial controller.

(3) Total fees from LV is over 15% of the total fees of the firm for the second consecutive year.

(4) Fees are overdue in respect of last year's audit.

Which of the following options best identifies the valid potential threats to Self Interest

a)

1 and 2 Only

b)

3 and 4 Only

c)

1,3, and 4

d)

3 Only

13.

(1) The audit team has been offered a discount on luxury phones.

(2) The audit senior was seconded to LV to cover for the financial controller.

(3) Total fees from LV is over 15% of the total fees of the firm for the second consecutive year.

(4) Fees are overdue in respect of last year's audit.

Which of the following options best identifies the valid potential threats to Self Review

a)

2 Only

b)

3 and 4 Only

c)

1,3, and 4

d)

3 Only

14.

You have also discovered that the audit engagement partner and the finance director have

known each other socially for many years, and in fact went on holiday together last

summer with their families to the finance director's villa.

Which TWO threats to independence are raised by this relationship

should be applied?

a)

Familiarity and self-interest

b)

Self-review and intimidation

15.

You have also discovered that the audit engagement partner and the finance director have

known each other socially for many years, and in fact went on holiday together last

summer with their families to the finance director's villa.

What safeguard can be applied to the scenario

a)

Rotation of Audit engagements partners

b)

Jones & Co to resign as auditors

16.

In relation to the audit team being offered a 10% discount on mobile phones:

The audit team can accept the discount as it is on the same terms as

that offered to staff

a)

True

b)

False

17.

In relation to the audit team being offered a 10% discount on mobile phones:

Junior members of the audit team are allowed to accept the

discount, but the audit manager and audit engagement partner

should not

a)

True

b)

False

18.

In relation to the audit team being offered a 10% discount on mobile phones:

Unless the value of the discount is trivial and inconsequential to the

audit team members, the offer should be declined

a)

True

b)

False

19.

Which of the following steps must Jones & Co take, as the fees from LV have exceeded 15%

for the last two years?

(1) Resign from the audit

(2) Disclose the matter to those charged with governance

(3) Arrange for a pre- or post-issuance review

a)

1 Only

b)

2 Only

c)

3 Only

d)

2 and 3

20.

The finance director of LV has made some enquiries about the other services that Jones &

Co may be able to assist with.

indicate the service that can not be provided by Jones & Co

a)

Design and implementation

of IT systems over financial

reporting

b)

Assistance with preparation

of tax return

c)

Accounting services

d)

Recruiting service for the

position of credit controller

21.

Auditors have a professional duty of confidentiality under ACCA’s Code of Ethics and Conduct; voluntary disclosure of information may be necessary in certain situations.

For which TWO of the following situations should an auditor make VOLUNTARY disclosure?

(1) If an auditor knows or suspects his client is engaged in money laundering (2) Where disclosure is made to non-governmental bodies (3) Where it is in the public interest to disclose (4) If an auditor suspects his client has committed terrorist offences

a)

1 and 4

b)

1 and 3

c)

2 and 4

d)

2 and 3

22.

Which TWO of the following are fundamental principles as stated in the ACCA’s Code of Ethics and Conduct?

1 Objectivity 2 Independence 3 Confidentiality 4 Professional skepticism

a)

1 and 4

b)

1 and 2

c)

2 and 3

d)

1 and 3

23.

Which of the following fundamental principles, if any, are threatened by the invitation to tender for the audit of Scrub Daddy Co?

1 Objectivity 2 Confidentiality

a)

1 only

b)

Both 1 and 2

c)

2 Only

d)

Neither 1 nor 2

24.