MCQ1

1

In order to calculate a level of planning materiality, auditors will often take a range of values. Which of the following is correct?

1

Financial involvement with a client will affect independence and may lead a reasonable observer to conclude that independence has been impaired. Which of the following is not a form of financial involvement with a client?

1

In an agreed-upon procedures engagement what matters generally have to be agreed between auditor and management?

1

How does the related services framework differ from the assurance framework?

1

Quality control policies and procedures that are established to decide whether to accept a new client should provide the audit firm with reasonable assurance that:

1

Detection risk differs from both control risk and inherent risk in that detection risk

1

Which of the following best represents a key control for ensuring sales are properly authorized when assessing control risks for sales?

1

When an accountant is not independent with respect to an entity, which of the following types of compilation reports may be issued?

1

Which of the following procedures would an accountant most likely perform during an engagement to review the financial statements of a client?

1

Which of the following techniques does an auditor ordinarily select in assessing control risk?

1

The term 'scope of an audit' refers to the audit procedures deemed necessary in the circumstances:

1

Which of the following is not a benefit of international auditing standards?

1

Which of the following parties is responsible for establishing an entity’s internal controls?

1

Most auditors assess inherent risk as high for related parties and related-party transactions because:

1

A measure of the auditor’s assessment of the likelihood that there are material misstatements in an account before considering the effectiveness of the client’s internal control is:

1

Which of the following is not one of the three main reasons why the auditor should properly plan engagements?

1

When an auditor calculates the gross margin as a percent of sales and compares it with previous periods, this type of evidence is called

1

After the preliminary judgment about materiality has been established, auditors may

1

Why do auditors establish a preliminary judgment about materiality?

1

When auditors allocate the preliminary judgment about materiality to account balances, the materiality allocated to any given account balance is referred to in ISA 530 Audit Sampling as:

1

If it is probable that the judgment of a reasonable person would have been changed or influenced by the omission or misstatement of information, then that information is, by definition of IAS 320 – Audit Materiality,

Advanced Audit Principles and Practice in class test

In order to calculate a level of planning materiality, auditors will often take a range of values. Which of the following is correct?

Financial involvement with a client will affect independence and may lead a reasonable observer to conclude that independence has been impaired. Which of the following is not a form of financial involvement with a client?

In an agreed-upon procedures engagement what matters generally have to be agreed between auditor and management?

How does the related services framework differ from the assurance framework?

Quality control policies and procedures that are established to decide whether to accept a new client should provide the audit firm with reasonable assurance that:

Detection risk differs from both control risk and inherent risk in that detection risk

Which of the following best represents a key control for ensuring sales are properly authorized when assessing control risks for sales?

When an accountant is not independent with respect to an entity, which of the following types of compilation reports may be issued?

Which of the following procedures would an accountant most likely perform during an engagement to review the financial statements of a client?

Which of the following techniques does an auditor ordinarily select in assessing control risk?

The term 'scope of an audit' refers to the audit procedures deemed necessary in the circumstances:

Which of the following is not a benefit of international auditing standards?

Which of the following parties is responsible for establishing an entity’s internal controls?

Most auditors assess inherent risk as high for related parties and related-party transactions because:

A measure of the auditor’s assessment of the likelihood that there are material misstatements in an account before considering the effectiveness of the client’s internal control is:

Which of the following is not one of the three main reasons why the auditor should properly plan engagements?

When an auditor calculates the gross margin as a percent of sales and compares it with previous periods, this type of evidence is called

After the preliminary judgment about materiality has been established, auditors may

Why do auditors establish a preliminary judgment about materiality?

When auditors allocate the preliminary judgment about materiality to account balances, the materiality allocated to any given account balance is referred to in ISA 530 Audit Sampling as: