24. Which of the following statements regarding the appropriateness of audit evidence llore true? 1. It concerns the quantity of nudit evidence needed 11 It concerns the relevance and reliability of audit evidence a) Neither I nor II b) Both I and II e) I only d) II only 25. Which international standard on auditing (ISA) deals with the auditor's responsibility towards fraud? a) ISA 200 b) ISA 220 c) ISA 230 d) ISA 240 26. Which of the following will not form part of an engagement letter? a) A statement that management is responsible for providing all information that the auditor request b) The fee arrangements c) The proposed auditor's report d) A statement about risk of misstatement because of inherent limitations in audit 27. Terms used in an opinion ('give a true and fair view' or 'present fairly, in all material respects") are equivalent terms a) True b) False 28. Misstatements, including omissions, are considered to be material if, individually or in the aggregate -a) They could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements b) They resulted from mismanagement of those in charge of governance c) They result in a significant change in the financial statements d) They are not a result of procedures to uncover fraud 29. Which of the following standards are not issued by the International Auditing and Assurance Standards Board a) International standards on assurance engagements b) International financial reporting standards e) International standards on quality control d) International standards on related services 30. Judgements about materiality are made in the light of surrounding circumstances, and are affected by: a) The auditor's perception of the financial information needs of users of the financial statements. b) Both the auditor's perception of the financial information needs of users of the financial statements, the size or nature of a misstatement. c) The company's control environment. d) The size or nature of a misstatement 31. Which of the following is a characteristic of any fraud? a) It is concealed b) It results in the misappropriation of assets c) It is intentional d) It results in misstatement of the financial statements 32. An auditor has been asked to replace an existing auditor. Which of the following statements regarding a new auditor's communication with the existing auditor is/are true? I) The new auditor can decide whether it is necessary to communicate with the existing auditor II) Both the new and old auditor must have the client's permission to communicate a) b) c) d) Neither I nor II Both I and II I only II only 33. International Standards on Auditing are the standards that are applied to financial accounting a) True b) False Page 7 of 11