Lecture 1 – Chapter 1 all

Working papers not the type of working

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Unformatted text preview: re- year end audit c) Preliminary audit d) Preliminary visit Q 8. In recurring engagements the auditor’s emphasis is primarily on a) Evaluating changes to the audit committee b) Evaluating new developments in the entity’s business and industry c) Determining the impact of new accounting standards on the client’s financial report d) Touring the client’s operating facilities and offices Q 9. Which of these working papers would not generally be located in the permanent file? a) Extracts or copies of the entity’s replaceable rules b) A master copy of the audit program c) Analytical review schedule from prior years d) The working trial balance Q 10. Which of the following is the most correct in regards to audit adjusting entries? a) Adjusting entries deemed material are expected to be recorded by the entity b) Adjusting entries deemed material are expected to be recorded by the auditor c) Irrespective of the amount adjusting entries are expected to be recorded by the entity d) Adjusting entries deemed material are noted in the permanent file to ensure the adjusting entries are recoded in the subsequent accounting period by the entity Q 11. The property rights of working papers rest with the auditor if the auditor is acting as an independent contractor. This was established in: a) Esanda Finance Corporation v Peat Marwick Hungerfords (1994) b) Lowe lippmann Figdor&Frank v AGC (1992) c) Chantrey Martin & Co v Martin (1953) d) Blackman v Caparoo (1986) Q 12. Knowledge of related parties is important in obtaining an understanding of the client’s business because: a) There may be a large volume of transactions between related parties b) The value of transactions between related parties may be high c) The transactions may be between numerous related parties d) They may not be transactions that take place at arm’s length Q 13. Which of these is a way not to obtain evidence regarding the existence of related parties? a) Requesting information from management b) Reviewing fillings with regulatory agencies c) Reviewing shareholder listings d) None of the above Q 14. The matter that the auditor would be least likely to discuss with the audit committee is: a) Additions or modifications to the auditor’s planned audit as requested by th...
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This document was uploaded on 09/17/2013.

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