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19.The auditor identifies the specific audit objective: “determine that property, plant and equipment (PPE) assets represent productive assets that are in use at balance date”. This objective is derived from the: a. existence or occurrence assertion. b. completeness assertion. c. presentation or disclosure assertion. d. rights and obligations assertion. 20.Which of the following combinations is a correct representation of the usual assessed levels of inherent risk in the cash area? 21.The starting point for verifying cash balances is to:
End of Semester 2, 2016ACCT3000 Auditing Mock Final Exam PaperPage 5 of 10 22.Ordinarily, an event indicating a condition arising after the reporting date requires: . 23.An auditor was unable to obtain an audited financial report or other evidence supporting an entity'sinvestment in a foreign subsidiary considered material to the financial report. Between which of thfollowing opinions should the entity's auditor choose?a. Qualified and disclaimer. b. Qualified and adverse. c. Disclaimer and unmodified with an Emphasis of Matter. d. Adverse and unmodified with an Emphasis of Matter. 24.The auditor has assessed control risk as high. Which of the following is not true? 25.Which of the following is not one of the fundamental principles of professional ethics underlying an audit? END OF PART A
End of Semester 2, 2016ACCT3000 Auditing Mock Final Exam PaperPage 6 of 10 PART B - SHORT ESSAY QUESTIONS. (45 MARKS)ANSWER ALL THREE (3) QUESTIONS.QUESTION 1
(a)What are the benefits of audit planning? (5 Marks) (b)
What are the auditor’s responsibilities in relation to fraud? (5 Marks) (c) How are tests of controls related to the evaluation of control risk? (5 Marks) (Total 15 Marks) QUESTION 2 Austellite Ltd (Austellite) is an Australian firm manufacturing satellite navigation systems designed for use in passenger vehicles, and exports these exclusively to car manufacturers in South Korea and Japan. Your firm has acted as the auditors of Austellite since its incorporation