1.The main purpose of the audit engagement letter is to confirm the terms of the engagement.

Select one:

True

False

2.In accepting an engagement, an auditor takes on professional responsibilities to the public, the client, and other members of the profession.

Select one:

True

False

3.In the investigation of a potential new client, besides inquiring of the existing auditor, the prospective auditor should make inquiries of other third parties which includes customers.

Select one:

True

False

4.The reliance on client internal audit personnel on the audit is strictly prohibited by professional standards.

Select one:

True

False

5.An auditor ceases to hold office after a company goes into liquidation.

Select one:

True

False

6.The words that best describes the relationship which should exist between the external auditor and the management of the client company are adversarial relationship.

Select one:

True

False

7.It is regarded as best practice in regard to the composition of audit committees to have an executive director as chairperson.

Select one:

True

False

8.Setting materiality levels, assessing audit risk and its components and obtaining an understanding of the internal control structure are all part of audit planning.

Select one:

True

False

9.The primary reasons for the existence of Auditing Standards is they are necessary to maintain a cost-effective service.

Select one:

True

False

10.The audit committee of the company is responsible for the appointment of the auditor to a company

Select one:

True

False