62)Employees sometimes misunderstand instructions and make mistakes. Errors may result from new technology and the complexity of system. Identify which one of the following is a limitation of internal controls.

Judgment

Management Override

Collusion

Breakdown

63)Regarding auditor remuneration, a self-interest threat to professional competence and due care is created if:

The auditor accepts a referral of a new client from an existing client.

A gift from a client is accepted

A professional accountant with an audit firm tries to get new work through advertising or other forms of marketing

The fee quoted is so low that it may be difficult to perform the audit

64)The recommendations applicable to the accounts and audit includes:

a) The board should present a balanced and understandable assessment of the company's position and prospects

b) The board should maintain a sound system of internal control to safeguard shareholders' investment and the company's assets.

c) The board should, at least annually, conduct a review of the effectiveness of internal controls and should report that they have done so.

d) The board should establish formal and transparent arrangements to consider how they should apply the financial reporting and internal control principles and for maintaining an appropriate relationship with the auditors

Only b) , c) and d)

All a) , b) , c) and d)

Only a) , b) and c)

Only a) , b) and d)