9- The audit partner wishes to keep the level of audit risk the same as prior years for the audit of Rubber Stamps Limited.

Since last year the audit partner has determined the level of control risk associated with Rubber Stamps Limited is higher whilst inherent risk has remained constant.

Compared to last year, the level of detection risk will be:

Select one:

a. Unchanged

b. Doubled

c. Higher

d. Lower

10- The audit team has been tasked with determining the amount of work that will be expected to complete and evidence to collect.

A member of the audit team has been assigned responsibility for investigating the general operations of the company, the industry to which the company belongs, competitors and the types of transactions the company (and companies in the industry) are involved in on a day-to-day basis.

The task of the audit team member is best described as evaluating the level of ______________________ of the client.

Select one:

a. Engagement Risk

b. Inherent Risk

c. Enterprise Risk

d. Audit Risk

11- In The Dark Limited has been a long term client of DPA Auditors.

During the last year the directors of In The Dark Limited have been the subject of multiple investigations by legal authorities for illegal dumping of chemicals and questionable share trading activities. Furthermore, the company has been increasingly seeing significant declines in suppliers willing to accept their business leading to higher input prices wish sales have declined as customers seek more reputable companies.

For the forthcoming audit, DPA Auditors would assess In The Dark Limited to have _______________________ compared to prior years.

Select one:

a. Lower audit risk.

b. Higher substantive risk.

c. Higher detection risk.

d. Lower engagement risk.

12- During the current year audit the audit team is concerned that one of the clients (ABC Limited) is not recording it sales correctly for the past year.

The audit team contacted all customers of ABC Limited who purchased large value items over 2 years ago. All the customers confirmed in writing that they had purchased the items from ABC Limited and provided the sales invoices.

The audit partner is likely to dismiss the value of the audit evidence gathered by the audit team because the audit evidence lacks:

Select one:

a. Relevance.

b. Sufficiency.

c. Reliability.

d. Timeliness.