1.Which of the following procedures is a procedure to test the valuation of accounts receivable?

Select one or more:

a.Bank confirmation.

b.Review of debtors' aging report.

c.Stocktake.

d.Suppliers' statement reconciliation.

2.Which of the following is not an example of management control?

Select one or more:

a.Communicating business objectives and goals.

b.Monitoring risk environments.

c.Monitoring performance through performance indicators and benchmarking.

d.Performing annual stocktake.

3.One of the primary assertion of concern when testing liability is completeness.

Select one or more:

a.TRUE

b.FALSE

4.Which one below is not a factor affecting the inherent risk at the transactional and account balance level?

Select one or more:

a.Accounts likely to require adjustment.

b.Complexity of underlying transactions.

c.Management integrity

d.Judgment involved in determining account balances.

5.An auditor finds evidence that warehouse staff are fraudulently claiming overtime. The auditor should:

Select one or more:

a.Further investigate the matter and report it to management when evidence sufficient for a prosecution has been obtained.

b.Report the matter to management in the year-end management letter.

c.Report the matter to management immediately if the expected effect of the fraud on the financial report is material.

d.Report the matter to management immediately.