1) Which of the following statements is false? A. B y law, subject to certain exemptions, companies must be audited annually e need for audit arises because the owners of the company are not usually the people who manage the company B. Th C. Management are responsible for producing annual financial statements D. An audit is a type of assurance enga gement in which an independent auditor provides assurance to management about the financial statements 2) Which of the following bodies issue International Auditing Standards? A. ICAEW AASB IFAC D. IASB 3) Which of the following are true in relation to Corporate Governance? 1) An audit committee should consist of executive directors 2) The Chief Executive, or Chairman, should be on the audit committee A 1 only 2 only B. C. Both of them Neither of them 4) Which of the following are true in relation to the statutory auditor? XA. The Director of a private company can also be its auditor B. In the UK an auditor, or audit firm, must be a member of a Recognised Supervisory Body A. 1 only 2 only C. 1 and 2 D. Neither 1 or 2 5) Which of the following is NOT a statutory auditor's right under legislation: A To have access at any time to the company's books and records B. To receive notice and attend all general meetings C. To receive whatever explanations they think necessary from the management of the company D. To not be removed from office during an audit, but instead to be not elected the following year 6) The threat that a professional accountant will be deterred from acting objectively because of actual or perceived pressures, including attempts to exercise undue influence over the professional accountant is the definition of which of the following threats to compliance with the fundamental principles of professional ethics: A. Self- interest threat B. Self-review threat C. Intimidation Threat D. Familiarity Threat 7) To be straightforward and honest in all professional and business relationships' is the definition of which of the following fundamental principles of professional ethics: A Confidentiality B. Objectivity C. Professional Behaviour D. Integrity 8) Which of the following statements is NOT true? TA An internal auditor is engaged by the entity's management and those charged with governance B. External auditors are appointed by shareholders C. Internal audit is concerned with reporting to the shareholders on the truth and fairness of the financial statements / D. Internal auditors examine, evaluate and report to management on the adequacy and effectiveness of the accounting and internal control systems 9) Which of the following attributes of internal audit would be a reason for the external auditor to rely on the work of the internal auditor? A. Internal auditors need not hold any formal qualifications B. Internal audit is established by management C. Internal auditors report to management D. Internal audit reviews accounting& control systems