Lecture 1 – Chapter 1 all

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Unformatted text preview: tegic direction c) The adequacy and reasonableness of compensation schemes for executives d) The financial reporting and disclosure regime Q 2. Within the enterprise governance definition, the auditor’s role is directly related to the: a) Performance aspect b) Resource use aspect c) Conformance aspect d) Assurance aspect Q 3. The performance aspect of enterprise governance does not comprise of: a) The independence of the audit function and the reporting mechanisms b) Comprehending and managing risk and key drivers of performance c) The decision- making processes d) The different tools and practices that are applied to enhance the value of the organization Q 4. Auditors play a significant role in strengthening both corporate and business governance as: a) They enhance audit quality control processes b) They actively practice the code of conduct c) They monitor the development of and adherence to auditing standards nationally and internationally d) All of the above Q 5. The process of accountability in the public sector does not include: a) Parliament allocating resources to the government agency b) Parliament reporting back to the government agency on the results it has achieved c) Specific expected outcomes of the programs d) Parliament approving the use to which the resources are put Q 6. Which of the following is incorrect? In applying, ASA 315 a) Obtain sufficient understanding of the internal control structure to plan the audit and develop an effective audit approach b) Gain an understanding of whether the internal control structure can ensure that the conduct of the business is orderly c) Use professional judgment to assess audit risk and to design audit procedures to ensure risk is reduced to an acceptable low level d) Non of the statement is incorrect Q 7. Enterprise risk management (ERM) is: a) The operational approach by which management intends to achieve its objectives b) A process in strategy setting, and across the entity, designed to indentify potential events that may affect the entity and manage risk to be within its risk appetite to provide reasonable assurance regarding the achievements of entity objectives c) The framework that combines corporate governance and business performance d) None of the above Q 8. Earnings management occ...
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This document was uploaded on 09/17/2013.

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