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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.
End of Semester 2, 2019 Marking Guide_ACCT3000 Mock Final Exam Paper Page 5 of 15 20.All else being equal, as the level of materiality increases, the amount of evidence required will: 21.The risk of concluding control risk is higher than it actually is, is also known as: 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, 2019 Marking Guide_ACCT3000 Mock Final Exam Paper Page 6 of 15 PART B - SHORT ESSAY QUESTIONS. (45 MARKS)ANSWER ALL THREE (3) QUESTIONS.QUESTION 1 (15 MARKS)(a)Audit risk is said to be a function of inherent risk, control risk and detection risk. Explain audit risk. Define and differentiate between each of its components. (5 Marks)