ca_exm_au1_2009-03 - CGA-CANADA EXTERNAL AUDITING [AU1]...

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EAU1M09 ©CGA-Canada, 2009 Page 1 of 7 CGA-CANADA EXTERNAL AUDITING [AU1] EXAMINATION March 2009 Marks Time: 3 Hours 30 Question 1 Select the best answer for each of the following unrelated items. Answer each of these items in your examination booklet by giving the number of your choice. For example, if the best answer for item (a) is (1), write (a)(1) in your examination booklet. If more than one answer is given for an item, that item will not be marked. Incorrect answers will be marked as zero. Marks will not be awarded for explanations. Note: 2 marks each a. At the conclusion of the audit of ABC Company in which the auditor found no material misstatements, which of the following statements is required in the scope paragraph of the standard audit report? 1) My responsibility is to express an opinion on these financial statements based on my audit. 2) I conducted my audit in accordance with Canadian generally accepted auditing standards. 3) I have audited the balance sheet of ABC Company as at December 31, 2008, and the statements of income, retained earnings, and cash flows for the year then ended. 4) In my opinion, these financial statements present fairly, in all material respects, the financial position of the company as at December 31, 2008, and the results of its operations and the cash flows for the year then ended in accordance with Canadian generally accepted accounting principles. b. Which of the following statements would be considered negative assurance? 1) In my opinion, except for the effects of the failure to record amortization of the company’s South American manufacturing plant, these financial statements are, in all material respects, in accordance with Canadian GAAP. 2) In my opinion, because the balance sheet and income statement do not reflect the decline in value of the company’s inventory, these financial statements do not present fairly the financial position of the company as at December 31, 2008. 3) In view of the possible material effects on the financial statements of the company’s failure to record the write-down of its investment in its foreign manufacturing facilities, I am unable to express an opinion whether these financial statements are presented in accordance with GAAP. 4) Based on my review, nothing has come to my attention that causes me to believe that these financial statements are not, in all material respects, in accordance with Canadian GAAP. c. Which of the following statements is required in the introductory paragraph of the standard audit report? 1) My responsibility is to express an opinion on these financial statements based on my audit. 2) I have planned my audit to obtain reasonable assurance whether the financial statements are free from material misstatement. 3)
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This note was uploaded on 03/30/2012 for the course ACCOUNTING 1204 taught by Professor Chang during the Spring '11 term at Nanjing University.

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ca_exm_au1_2009-03 - CGA-CANADA EXTERNAL AUDITING [AU1]...

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