MCQ's:

1. All of the following are true with respect to the auditor's consideration of information other than the audited financial report that are included in a client's annual report except:

A. the auditor must consider whether the other information is consistent with the information contained in the audited financial statements.

B. the auditor is under no obligation to perform audit procedures on this other information.

C. the auditor must perform audit procedures on this other information.

D. the auditor must request that material inconsistencies be corrected.

2. Which of the following circumstances should result in an emphasis of matter paragraph?

A. The auditor is unable to withdraw from the audit engagement even though the scope limitation imposed by management is pervasive.

B. A major catastrophe that has had, or continues to have minimal effect on the entity's financial position.

C. An uncertainty relating to the future outcome of an exceptional litigation.

D. Matters that the auditor has been asked to express an opinion on, but are in addition to the auditor's responsibility under the Australian auditing standards.

3. The main objectives of an appropriately established and effective audit committee are wide ranging. Which of the following are responsibilities of an audit committee in relation to the external audit?

A. Making recommendations to the board on the selection, appointment, re-appointment or replacement of the external auditor.

B. Assessing the quality and effectiveness of the audit and evaluating the performance of the external auditor.

C. Reviewing the audit plan for coverage of material risks and financial reporting requirements.

D. All of the above.

4. Which of the following is not a duty of an independent auditor?

A. To use reasonable care and skill

B. To report to shareholders

C. To be independent

D. To detect all fraud

5. It is incorrect that the Framework for Assurance Engagements:

A. is based on the International Framework issued by the IFAC.

B. establishes standards.

C. shows the concepts of an assurance engagement.

D. defines and describes the elements of an assurance engagement.