17.

PAMU Public Accountants provides in-house training for its staff every fortnight. At their recent training, the topic was drafting the Auditors Report and the different types of opinions based on the evidence gathered during the audit. Which of the following information is normally found in the auditors responsibility paragraph of an unqualified opinion?

a.

the statements and dates under audit

b.

the final assessment of a companys standings with the audit firm

c.

objectives of the auditor

d.

audit planning and procedure

18.

In determining the objectives of the test, the auditor needs to:

a.

Consider the combination of audit procedures that is most likely to achieve objectives of the test

b.

Determine what constitutes an error as well as the appropriate population from which to select the sample

c.

All three statements are true when determining the objectives of the test

d.

Consider the specific objectives to be achieved

19.

In completing the audit of Delicious Mushroom (DM) Ltd for the year ended 30 September 2021, Morenk Mosy, the senior auditor in charge of the field work was informed by the CEO that the board of directors wish for the audited report to be signed by 30 October 2021 which is 6 days away. Morenk politely informs the CEO that this will be impossible, most likely due to the following reason:

a.

The audit team needs to obtain additional audit evidence

b.

Reasonable time is required to make sound professional judgements as the conclusions reached in completing the audit have a direct impact on the opinion

c.

There were many risks encountered during the audit and the audit did not go according to plan

d.

The audit team has not performed work worthy of the audit fee

20.

Zu Ting, a senior auditor working for XYZ Accountants was chosen to lead the audit of Dietanic Ltd. Following the assessment of Dietanics control risks, Zu decided to adopt the predominantly substantive approach. In taking this approach, Zu would hope to:

(i) Obtain evidence that implicates the CEO and senior management

(ii) Obtain evidence that supports the fairness of each significant financial statement assertion

(iii) Reveal monetary errors or misstatements in the recording or reporting of transactions

A.

i,ii,iii

B.

ii, iii

C.

i,ii

D.

i, iii