.
Understanding a client's system of internal control can help the auditor assess risk and identify areas where financial statement misstatements might be more likely.
Understanding a client's system of internal control can help the auditor make valuable recommendations to management at the end of the engagement.
Understanding a client's system of internal control can help the auditor seel consulting services to the client.
Understanding a client's system of internal control is not a required part of the audit process.
Issuance of an unqualified auditor's report indicates that in the auditor's opinion the client's financial statements are not fairly enough presented in accordance with agreed-upon criteria to qualify for a clean opinion.
Issuance of an unqualified auditor's report indicates that the auditor is not qualified to express an opinion that the client's financial statements are fairly presented in accordance with agreed-upon criteria.
Issuance of an unqualified auditor's report indicates that the auditor is expressing different opinions on each of the basic financial statements regarding whether the client's financial statements are fairly presented in accordance with agreed-upon criteria.
Issuance of a standard unqualified auditor's report indicates that in the audtior's opinion the client's financial statements are fairly presented in accordance with agreed-upon criteria, which no need for the inclusion of the qualifying phrases.
Assisting the external auditors.
Providing reports on the reliability of financial statments to investors and creditors.
Consulting activities.
Operational auditrs.
Audit risk and inherent risk.
Audit risk and control risk
Inherent risk and control risk.
Control risk and detection risk.
Consider whether the extent of substantive procedures may be reduced based on the results of the internal control questionnaire.
Determine planning materiality for audit purposes.
Conclude whether changes in compliance with prescribed internal controls justify reliance on them.
Prepare a preliminary draft of the management representation letter.
Arrest is a type of auditing service.
Auditing and attest services represent two distinctly different types of services.
Auditing is a type of assurance service.
Assurance is a type of attest service.
Independence is an important attribute of assurance service providers
Assurance services can be performed to improve the quality or context of information for decision makers.
Financial statement auditing is a form of attest service but it is not an assurance service.
In performing an attest service, the CPA determines the correspondence of the subject matter (or an assertion about the subject matter) against criteria that are suitable and available to users.
To determine the audit fee.
To decide which facts about the entity to include in the audit report.
To plan the audit and determine the scope of audit procedures to be performed.
To limit audit risk to an appropriately high level.
RM22,000
RM42,000
RM10,500
RM30,000
Option 1
Option 2
Option 3
Option 4
A. iii) only
B. i) only
C. i) and iv) only
D. i) & iii) only
A. Ensure that the correct engagement team is chosen for the assignment.
B. Identify potential problems that may occur on the audit.
C. Carry out substantive testing on the balances in the financial statements.
A. iii) only
B. All of the above
C. i) ii) & iv) only
D. i) & iii) only
A. iii) only
B. All of the above
C. i) ii) & iv) only
D. i) & iii) only
A. Government statistical records.
B. The company’s own annual report.
C. The foreign office information department
A. To identify potential misstatements due to fraud or error.
B. To address the risk areas in the audit.
C. To reduce the risk of non-detection of a misstatement to zero.
D. To reduce the risk of issuing an inaccurate opinion.
A 1 and 4
B 3 and 4
C 1 and 2
D 2 and 3
A. All of the above.
B. i) iii) and iv) only.
C. i) only
D. i) and iii) only.
A. Enquire with the accounts clerk to verify that they observe the line manager do this on a regular basis.
B. For a sample of the invoices, re-calculate the invoice amount to ensure it is arithmetically correct.
C. For a sample of invoices ensure that they have been signed by the line manager.
D. For a sample of the invoices verify that the supplier is one of those on the authorized suppliers list.
A. The auditor makes the assertion and then tests it during the course of the audit.
B. Management make the assertions by inclusion of items in the financial statements and the auditor tests those assertions.
C. Management make formal assertions to the auditor in the form of a letter and those assertions are given to the shareholders.
D. The auditor may assume that the assertions made by management are correct if the Finance Director is a qualified accountant.
A. I, II and III
B. I, II and IV
C. I, III and IV
D. All of the above
A. True
B. False
A. 30
B. 40
C. 50
D. 60
A. I and II
B. I and III
C. II and III
D. All of the above
A. True
B. False