Audit and Assurance Multiple choice questions

Independent professional services that improve the quality of information or its context for decision-makers are called:

Auditors that work for a company, assess and evaluate risk in that company and communicate their findings with management are best known as:

The Cadbury Report defined Corporate Governance as a system by which companies are:

The UK corporate governance code requires a board to have:

Various individuals and parties are employed by a company to contribute to the preparation of the company’s financial statements. The party that has oversight of the reporting process, the parties involved in that process and has direct influence over proposing and hiring a firm of external auditors is:

All the information, from whatever source, used an auditor to arrive at the conclusions on which the audit opinion is based is known as:

A set of audit procedures prepared by an auditor to test management’s assertions for a component of the financial statements is referred to as:

Which one of the following is not a key objective of the UK’s Financial Reporting Council?

Audit risk is comprised of two elements:

When an auditor observes his profession's technical and ethical standards and strives to continually improve his competence and quality of services, the part of the Ethical Code that he is compliant with is:

A tour of the client's facilities provides the auditor an opportunity to:

An independent review carried out for listed company audits and large and complex audits is called a:

The UK’s Financial Reporting Council (FRC) is similar to the US’s Securities and Exchange Commission (SEC). Which one of the following is most correct?

6. Which of the following professional services is an assurance service:

An auditor must observe his profession's technical and ethical standards in accordance with the accountant’s:

Before accepting a new audit engagement, an auditor must:

Partners of a firm of auditors carry out hot reviews and cold reviews to ensure:

For external audits of annual financial statements, auditors identify and assess the risks of material misstatements in those financial statements by...

Professional scepticism involves...

When required to do so by the UK Code, company boards develop robust systems of corporate governance by (at least) appointing...

The risk category that is most likely to keep an audit engagement partner awake at night is...

Why do most audit firms adopt segment-based audit approaches?

The internal audit activity most directly contributes to an organization’s governance process by:

When the executive management of an organization decided to form a team to investigate the adoption of an activity-based costing (ABC) system, an auditor was assigned to the team. The best reason for including an internal auditor is the internal auditor’s knowledge of (2 marks).

An employee with a good background and years of experience earns a salary at the top of his or her range. Under the company’s remuneration program, the employee must earn a promotion in order to increase his or her salary above the usual annual increase. Which of the following is most likely to be an effect on the employee’s behavior (2 marks)?

10. Which of the following are not a criterion for the selection of an auditor (2 marks)? 1. The qualification of the auditor 2. The school the auditor attended 3. The experience of the auditor 4. The family background of the auditor

A situation where a company issue or witness a report on subject matter, or an assertion about subject matter, is the responsibility of the.

In the event that the external auditor of a company’s financial statements is unable to obtain sufficient and competent evidence about some component of those financial statements, the auditor would issue an audit opinion referred to as:

External audit services and internal audit services are similar. Which of the following statements is not correct?

The most senior member of an audit team is called an:

External audit services and internal audit services are similar. Which of the following statements is not correct?

The UK’s Financial Reporting Council (FRC) is similar to the US’s Securities and Exchange Commission (SEC). Which one of the following is most correct?

In the realm of audit and assurance, what does SOAPSPAM represent?

The theory that executive managers are reliable and trustworthy individuals and that they should be empowered to run firms because they are good stewards of the resources entrusted to them is called:

The system designed and deployed by a company to ensure (i) that assets and records are safeguarded and (ii) that the company's financial reporting system generates reliable information for decision making, is called:

The UK corporate governance code requires a board to have: