1.One of the following is not an issue when determining the extent of the statutory auditor's reliance on the internal auditor's work?

A. the materiality of items to be tested or information to be obtained

B. the level of judgement required

C. the personal relationship existing between the internal auditor and statutory auditor

D. the audit risk inherent in the item to be tested

2.The formal process of auditing financial statement prepared by management in order to express an opinion on their truth and fairness to shareholders is known as

A. statutory audit

B. internal audit

C. ad-hoc audit

D. forensic audit

3.Which of the following describes the type of internal audit that focuses on a particular activity?

A programme audit

B. activity audit

C. management audit

D. operational audit

4.One of this is excluded from the content of an audit programme?

A. points of caution to the next audit

B. nature of operations of the company

C. date of commencement of audit

D. a review of the systems of internal checks

One of the following circumstances may not pose a threat to objectivity and independence 5.of an auditor in the discharging of his duties?

A. threatened litigation in relation to a client

B. undue dependence by the auditor on a client

C. refusal to accept or perform audit work for which he is not competent of knowledge to perform

D. allowing overdue fees to be converted to loans for the auditor

6.

Management's responsibility for the preparation statements is emphasized in _________document?

A. letter of representation

B. engagement letter

C. circularization letter

D. confirmation letter

7.The following except one is not a procedure for evaluating internal control system?

A. determination of the nature of irregularities that may arise

B. planning the nature and extent of audit test to be performed.

C. refusal to accept or perform audit work for which he is not competent of knowledge to perform

D. allowing overdue fees to be converted to loans for the auditor