TUTORIASL_3 - TUTORIASL 3 A Multiple Choice Questions 1...

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TUTORIASL 3 A: Multiple Choice Questions 1. Which of the following is an effective audit planning procedure that helps prevent misunderstandings and inefficient use of audit personnel? (a) arrange to make copies, for inclusion in the working papers, of those client- supporting documents examined by the auditor. (b) Arrange to provide client with copies of the audit programs to be used during the audit. (c) Arrange a preliminary conference with the client to discuss audit objectives, fees, timing and other information. (d) Arrange to have the auditor prepare and post any necessary adjusting or reclassification entries before final closing. 2. An auditor is planning an audit engagement for a new client in a business with which he is unfamiliar. Which of the following would be the most useful source of information during the preliminary planning stage, when the auditor is trying to obtain a general understanding of audit problems that might be encountered? (a) client manuals of accounts and charts of accounts. (b) industry audit guides available on the internet. (c) Prior-year working papers of the predecessor auditor. (d) Latest annual and interim financial statements issued by the client. 3. When approached to perform an audit for the first time, the auditor should make inquiries of the predecessor auditor. This is a necessary procedure because the predecessor may be able to provide the successor with information that will assist the successor in determining whether: (a) the work of the predecessor should be used. (b) the company follows the policy of rotating its auditors.
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This note was uploaded on 07/31/2011 for the course MGMT 2027 taught by Professor Shak during the Three '07 term at Queensland.

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TUTORIASL_3 - TUTORIASL 3 A Multiple Choice Questions 1...

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