Because of the risk of material misstatement, an audit of financial statements in accordance

with International Auditing Standards should be planned and performed with an attitude of:

$($a$)$ Objective judgment.

$($b$)$ Independent integrity.

$($c$)$ Professional scepticism.

$($d$)$ Impartial conservatism.

The protection of the public and regulation of the accountancy profession in New Zealand is

a responsibility of:

$($a$)$ The External Reporting Board.

$($b$)$ The NZ Institute of Chartered Accountants.

$($c$)$ The Police.

$($d$)$ Parliament.

Independence is the cornerstone of the auditing profession. Which of the following is a self$-$

review threat:

$($a$)$ A loan from a director of an audit client.

$($b$)$ A tax partner of the audit firm has assisted the audit client with their tax calculation.

$($c$)$ Long association of a senior member of an audit team with the audit client.

$($d$)$ Pressure to reduce inappropriately the extent of work performed to reduce fees.

The term 'Expectation Gap' refers to differences in expectations between:

$($a$)$ Auditors and their clients.

$($b$)$ Auditors and users of audited financial statements.

$($c$)$ Chartered Accountants Australia & NZ $($CAANZ$)$ and the users of financial

statements.

$($d$)$ Auditors and the External Reporting Board $($XRB$).$

A statement made by an auditor that 'nothing has come to our attention that causes us to

believe that the financial report of ABC Limited for the year endepd $30$ December $2023$ does

not present fairly the financial position and the results of operations, and its cash flows for

the year then ended in accordance with an identified financial reporting framework' is

known as:

$($a$)$ Negative assurance.

$($b$)$ Positive assurance.

$($c$)$ Reasonable assurance.

$($d$)$ Prudent caution.