Lecture 1 – Chapter 1 all

6 it is correct that a review of an interim financial

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Unformatted text preview: erim financial report: a) Provides a basis for an opinion to be formed regarding whether the financial report is presented fairly, in all material aspects, in accordance with the applicable financial reporting framework b) Must apply the requirements of ASAs 100-799 c) Enables the auditor to express a conclusion whether, on the basis of the review, anything has come to light to cause the auditor to believe that the interim financial report is not prepared in accordance with an applicable financial reporting framework d) Requires the same level of work to be performed as that of an annual audit Q 7. The type of audit procedure least likely to be undertaken in a review engagement is: a) b) c) d) Reading of the minutes of directors Enquiring of management about any changes in accounting principles Confirmation of account balances Communicating with the internal auditor Q 8. From the following list, the most appropriate way of dealing with concerns surrounding materiality in an assurance engagement on other than audits or reviews of historical financial information is to: a) b) c) d) Request to have the scope changed with the client to minimize the risk of material misstatement Decline the engagement Consider the use of an expert Rely on work performed by internal auditors of the entity Q 9. A report on assurance engagements other than audits or reviews of historical financial information: a) b) c) d) Can only be in the form of an unqualified opinion Can only be in the form of an unqualified opinion or modified with an ‘emphasis f matter’ Can be either unqualified or qualified, and may include an emphasis of matter Cannot be modified with an adverse opinion Q 10. In relation to sustainability reporting the acronym GRI stands for: a) b) c) d) Global Reporting Index Global Research Initiative Global Reporting initiative Global Research Index Q 11. In relation to accounting sustainability implies paying attention to the comprehensive outcomes of events and actions where practicable and being accountable for such outcomes. This is referred to as: a) b) c) d) Comprehensive accounting Full cost accounting Environmental accounting Both b. and c. Q 12. The true statement concerning what research has shown about the association between sustainability disclosure and financial performance is: a) Higher scores of sustainability disclosures are associated with lower levels of operating cash flow to total assets, working capital to total assets, retained earnings to total assets and asset backing per share b) Companies with higher sustainability disclosures tend to have their shares more conservatively valued c) Firms with a higher level of sustainability disclosures tend to have relatively weaker financial performance and higher financial distress ratings. d) None of the above has been shown to be true Q 13. Amongst other things, Account Ability’s AA1000 Assurance Standard (AA1000AS): a) b) c) d) Assesses the organization’s responsiveness to stakeholders...
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