Lecture 1 – Chapter 1 all

Statements and or its solvency b that auditors

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Unformatted text preview: ns by management are a substitute for other audit evidence that the auditor could reasonably expect to obtain b) Representations by internal auditors are a substitute for other audit evidence that the auditor could reasonably expect to obtain c) The chairperson of the board of directors should not be the chairperson of the audit committee d) Audit committees should be made up of executive directors to liaise with the auditors and to- expedite the audit process wherever possible Q 19. Perform risk assessment proceduresà༎Assess the risk of material misstatementà༎ respond to assessed riskà༎Evaluate audit evidence Q 20. Which of the following is part of phses iii of the audit process, which is responding to assessed risks? a) Relating risk factors to potential financial statement misstatements b) Deciding the extent of audit tests c) Audit staffing d) b. and c. Q 21. The standards that apply to the audits and reviews of historical financial information are: a) Australian Auditing Standards b) Standards on Review Engagements c) Guidance statements, other guidance and AUASB Bulletins d) All of the above Q 22. Auditing standards are legally enforceable: a) Under the code of the Auditing and Assurance Standards Board b) Under case law c) Under the Corporations Act d) Under CLERP 9 Q 23. The group of auditing standards that deal with audit evidence are: a) b) c) d) ASA 500’s ASA 600’s ASA 700’s ASA 800’s Q 24. On the Board of Directors executive directors are: a) Part of the management of the company b) Independent of the company c) Have MBA’s or other post- graduate qualifications d) Also sit on the audit committee Q 25. Good auditing practive recommends that members of which of the following groups should be on the company’s audit committee? a) Internal auditors b) Independent auditors c) Non- executive directors d) All of the above Q 26. In which case was it stated “to excuse an auditor because the directors or management were also at fault… would be to negate a fundamental reson for the appointment of the auditor”? Pacific Acceptance Corporation Ltd Lecture 3 Chapter 8 Q 1. Which of the following working papers not the type of working papers that are usually prepared during an audit? a) A workin...
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