21.Which of the following is NOT a test of control?

a)Reviewing the client's processes for debt collections and assessment of the adequacy of provision for doubtful debts.

b)Reviewing evidence of monthly reconciliations of customer accounts by relevant manager.

c)Reviewing responses to external confirmation of a sample of the client's customers.

d)Reviewing the log of changes to the master prices list to ensure that all changes to selling prices were made by the authorised sales manager.

22.Which of the following best describes key audit matters which are required to be included in the auditor's report?

a)Matters which have been brought to the attention of the auditor by the firm's quality review partner, but that are not reflected in the financial report.

b)The five matters that are agreed between the auditor and the audit committee as being of most significance in the audit of the financial report.

c)The significant differences between what is disclosed in a financial report prepared in accordance with the financial reporting framework and what is necessary to provide a true and fair view.

d)Matters that in the auditor's professional judgment, are of most significance in their audit of the financial report.

23.The accounts receivable balance as at 30 June 2019 is $5m for an audit client, Tommo. On 20 July 2019, it comes to your attention that one of Tommo's largest customers has filed for liquidation a few weeks ago and it is very unlikely that any of the $1m owing to Tommo from the customer will be recoverable. Which of the following would be the MOST likely action you will require Tommo's management to undertake?

a) Reduce the accounts receivable balance in the financial report for the year ended 30 June 2019 by $1m.

b)Reduce the accounts receivable balance in the financial report for the year ended 30 June 2020 by $1m.

c)Insert a note disclosure in the financial report for the year ended 30 June 2019.

d)No action.

24.You have noted that the sustainability section of an audit client's draft annual report contains information that is materially inconsistent with the audited financial report as it substantially understates a significant penalty that was imposed on the company during the year for breaching pollution laws. You have asked management to address the matter and change the relevant information in the sustainability section to match the amount that is correctly recorded in the financial report. They have declined as they believe that the readers of the financial report and sustainability section are different. If the matter is material, the most appropriate course of action would be to:

a)Issue an adverse opinion with an other matter paragraph describing the situation in the audit report.

b)Issue an unmodified opinion and include the matter in the letter to the client's audit committee.

c)Issue a qualified opinion and include the matter in the basis for qualified opinion paragraph.

d)Issue an unmodified opinion with an other information section outlining the matter.

25.The directors of an audit client have requested your audit firm to undertake an additional assurance engagement to examine and issue a report on the company's compliance with the NIST Cybersecurity Framework. What is the highest level of assurance you would be able to provide for this engagement?

a)Reasonable assurance.

b)Absolute assurance.

c)Limited assurance.

d)No assurance