Multiple Choice Questions 1. The following are the reasons to disclose information except A. Public duty to disclose. B. Consent has been obtained from the client. C. Consent has been obtained from the existing auditor. D. Professional right to disclose. 2. Which of the following situations is likely to impair an auditor's independence? A. Performs tax services for the audit client. B. Purchase large amount of goods from the client at substantial discount. C. Performs audit for a client who owns shares in another client of the auditor. D. Forms a partnership with his spouse who is also a member of MIA. 3. Which of the following should the auditors obtain from the predecessor auditors before accepting an audit engagement? A. All matters of continuing accounting significance. B. Facts that might bear on the integrity of management. C. Analysis of balance sheet accounts. D. Analysis of income statement accounts. 4. Under the requirements of the Companies Act, 2016, the annual audit of a company's financial statements is to be conducted by A. The government auditor. B. Approved company auditor. C. The internal auditor. D. The forensic auditor. 5. The Auditor General reports the audits performed on the accounts of Federal, State, Public Authorities and the Statutory Bodies to A. Minister of Education B. Yang di Pertuan Agong C. Prime Minister D. Ministry of Finance 6. Encik Marzuki has been asked by a prospective client to act as the company's auditor replacing the existing auditor. Encik Marzuki should A. Turn down the engagement because the company already has an auditor. B. Ask the client's permission to communicate with the existing auditor. C. Accept the appointment if MIA approves. D. Agree to act as an auditor on condition that the client pays a higher fee. TRUE AND FALSE QUESTIONS Indicate whether each of the following statements is TRUE of FALSE. 1. Company auditor, in the Malaysia context is the auditor governed by the Accountant Act, 1967 to act as auditor companies limited by shares. 2. Familiarity threat may be created if the accountant firm using the same senior personnel on an audit engagement over a long period of time. 3. MIA by-laws prohibit the CA firm to decline the re-appointment if the client has not paid the audit fee for three consecutive financial years. 4. One of the auditor's rights as required by the Companies Act 2016 is to attend the board of directors meeting. 5. Use of a firm name which indicates specialization (or expert) is prohibited by the MIA by-laws