In Australia and New Zealand, ASX guidelines encourage the appointment and evaluation of performance of external auditors to be carried out by:

Select one:

a.Audit committee

b.Board of directors

c.Chief Financial Officer (CFO)

d.Chief Executive Officer (CEO)

Studying the client and industry allows an auditor to:

Select one:

a.familiarise him or herself with the client's entire business and the industry in which it operates.

b.gain an understanding of any accounting practices or transactions unique to that industry.

c.assess the control environment and the attitudes and capability of senior management.

d.all of the options are correct.

Anne finds that her boss has been using the loopholes in the company internal controls to earn higher commission from sales. Anne understands that although customers agreed on the contract price set, but it was determined not in accordance with the company's guidelines. As a result, her division is regarded as high performing based on value of sales. It does not sit right with Anne. What does Anne need to do first?

Select one:

a.Define the issue

b.Identify the principles that can be applied

c.Identify the facts

d.None of the options are correct.

There are three risk factors known as the 'fraud triangle' that are generally present when a fraud is committed. Which of the following is not one of them?

Select one:

a.A perceived opportunity to commit fraud.

b.An ability to avoid being discovered.

c.An incentive or pressure to commit fraud.

d.An ability to rationalise the fraudulent action.

Ethics can be defined as:

Select one:

a.A synonymous term for a country's legal system

b.Rules that guide us in our everyday behaviour, thoughts and actions

c.Both a. and b. are correct

d.None of the options are correct