Question
3 Which of the following is incorrect about contributory negligence? It is established by the AWA case. If directors are also negligent, each party is
3 Which of the following is incorrect about contributory negligence?
| It is established by the AWA case. | |
| If directors are also negligent, each party is held accountable in proportion to their guilt. | |
| It is established by the Scott case. | |
| An auditor cannot use it as a defence where there has been a breach of contract. |
7Which of these would not be considered corroborating information?
| The accountants worksheet. | |
| Management representation letter. | |
| Confirmation from vendors. | |
| Oral evidence obtained from client personnel. |
9When the client management refuses to disclose critical information regarding the high risk of a going concern, which of the following actions is the auditor most likely to take?
| a. | issuing an unqualified audit opinion with an emphasis of matter paragraph. |
| b. | issuing an adverse audit opinion with an other matter. |
| c. | issuing an adverse audit opinion with an emphasis of matter paragraph. |
| d. | issuing a disclaimer of opinion with an emphasis of matter paragraph. |
10When a client brings forward sales invoices from the next to the current financial year, which of the following accounts and its assertions are most likely at risk?
| a. | sales accounts, cut-off. |
| b. | accounts receivable, occurrence. |
| c. | sales accounts, existence. |
| d. | accounts receivable, completeness. |
11Which of the following evidence is the most reliable?
| a. | Valuation reports conducted by internal auditors. |
| b. | Worksheets provided by clients accountants. |
| c. | Customer confirmations held by the client. |
| d. | Bank confirmations sent directly to the auditor. |
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