WorksheetsEnd of Day 1 Quiz
Total questions: 14
Worksheet time: 12mins
Within client acceptance, you must document the client categorisation. Where would you find the client categorisation?
Engagement letter
Inflo
Take on documents within Appian
What platform would you use to create an engagement letter?
OnePlace
OneDoc
LEAP
Sharepoint templates
What would be the most appropriate benchmark for a trading entity with low profit margins?
Revenue
Total assets
Net assets
What would be the best benchmark for a holding entity?
PBT
Revenue
Total assets
Which THREE of the following factors would be deemed EXTERNAL when considering materiality % threshold?
Volatile market for the industry
Multiple internal control deficiencies identified in prior year
Listed entity
Significant third party debt with a bank
Which TWO of the following INTERNAL factors would you consider when determining the % threshold for PM?
Material and highly judgemental estimates
Inflationary environment
Internal control deficiencies in prior year
Government funding
What is the maximum threshold for Performance Materiality?
65%
70%
75%
80%
For which of the following areas must be we obtain and document our understanding of the BUSINESS PROCESS? (SELECT TWO)
For all material FSLI's
Financial Reporting Process
Significant classes of transactions, balances and disclosures (SCOT+)
In which of the following areas must we document our understanding of controls?
Significant risks
Journals
Risks where we intend to rely upon the operating effectiveness of controls
All SCOT+ risks
Which of the following may indicate a risk factor?
Complexity
Change
Fraud
Problem
Which TWO of the following would be the most relevant assertions for the payroll rationalisation procedure?
Accuracy
Completeness
Valuation
Occurence
Which TWO of the following risks are presumed significant risks?
Going concern
Presumed risk of fraud within revenue
Cash
Management override of controls
When would we deem a FSLI a SCOT+?
When the FSLI is material
When there is a risk of material misstatement
When it has an associated estimate with low estimation uncertainty
We have determined that there is a highly judgemental and material bad debt provision, which has been identified as an estimate with HIGH ESTIMATION UNCERTAINTY.
What impact does this have on scoping for that FSLI?
It must be a significant risk
It must be a SCOT+
It must be material only
