Multiple choice quetsions

If the previous period's financial statements are unaudited, and sufficient appropriate evidence is unavailable, then the current auditor's report will be:

		qualified on the basis of scope limitation.
		unqualified on the basis that the comparatives are unaudited and no opinion is expressed on them.
		qualified on the basis that the comparatives are unaudited and an opinion is expressed on them.
		qualified on the basis that the comparatives are unaudited and no opinion is expressed on them.

Which statement would not be found in a directors' declaration?

		That the financial statements and notes give a true and fair view.
		That the financial statements are free from material misstatement whether due to fraud or error
		That in the directors' opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they fall due.
		That in the directors' opinion the financial statements and notes are in accordance with the law.

The addition of an emphasis of matter paragraph in an audit report

		does not affect the auditor's opinion.
		does affect the auditor's opinion.
		is required by the standards to be included in all audit reports.
		is only included for going concern uncertainties.

Circumstances where the auditor is justified in qualifying the audit report because of an inability to obtain sufficient appropriate audit evidence would not include which of the following?

		the auditor is appointed after the count of physical inventories has occurred
		the auditor runs out of time to follow normal auditing procedures because it has scheduled too many clients for audit in the final month of the audit period.
		where a fire has destroyed the entity's accounting records
		the auditor is not able to obtain sufficient appropriate audit evidence about an associated entity

The opinion expressed on the consolidated statements of a company is the sole responsibility of:

		those charged with governance.
		the audit senior.
		the principal auditor.
		the managing director.

The emphasis of matter paragraph in an audit report would normally refer to the fact that the auditor's opinion is:

		qualified in this respect.
		not qualified in this respect.
		a disclaimer of opinion.
		an adverse opinion.

Which of these would not be considered a scope limitation?

		The client would not permit confirmation of receivables with their best customers for fear of annoying the customers.
		Access to the board of directors meetings was limited to those meetings taking place before the balance sheet date.
		The auditor is appointed to the engagement too late to observe the client's counting of the inventory.
		The auditor is forced to call upon an outside expert to properly value antiques that are held in the client's vault as investments.

Section 302 of the Corporations Act prescribes that disclosing entities must:

		prepare half-year financial statements and a directors' report.
		have the half-year financial statements audited.
		have the half-year financial statements reviewed
		not lodge the half-year financial statements with ASIC

Which of these items does not form part of the financial report, as defined in the Corporations Act (s.295)

		A statement of cash flows for the year.
		Notes required by Accounting Standards.
		Any additional disclosures necessary to give a true and fair view.
		The directors' report.

The auditor of a reporting entity for which consolidated accounts are required has:

		the right of reliance on the work of the controlled entity's auditor.
		the right of access to the accounting records of controlled entities.
		the right to appoint the auditor of the controlled entity.
		all of the above.

Multiple choice quetsions

If the previous period's financial statements are unaudited, and sufficient appropriate evidence is unavailable, then the current auditor's report will be:

		qualified on the basis of scope limitation.
		unqualified on the basis that the comparatives are unaudited and no opinion is expressed on them.
		qualified on the basis that the comparatives are unaudited and an opinion is expressed on them.
		qualified on the basis that the comparatives are unaudited and no opinion is expressed on them.

Which statement would not be found in a directors' declaration?

		That the financial statements and notes give a true and fair view.
		That the financial statements are free from material misstatement whether due to fraud or error
		That in the directors' opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they fall due.
		That in the directors' opinion the financial statements and notes are in accordance with the law.

The addition of an emphasis of matter paragraph in an audit report

		does not affect the auditor's opinion.
		does affect the auditor's opinion.
		is required by the standards to be included in all audit reports.
		is only included for going concern uncertainties.

Circumstances where the auditor is justified in qualifying the audit report because of an inability to obtain sufficient appropriate audit evidence would not include which of the following?

		the auditor is appointed after the count of physical inventories has occurred
		the auditor runs out of time to follow normal auditing procedures because it has scheduled too many clients for audit in the final month of the audit period.
		where a fire has destroyed the entity's accounting records
		the auditor is not able to obtain sufficient appropriate audit evidence about an associated entity

The opinion expressed on the consolidated statements of a company is the sole responsibility of:

		those charged with governance.
		the audit senior.
		the principal auditor.
		the managing director.

The emphasis of matter paragraph in an audit report would normally refer to the fact that the auditor's opinion is:

		qualified in this respect.
		not qualified in this respect.
		a disclaimer of opinion.
		an adverse opinion.

Which of these would not be considered a scope limitation?

		The client would not permit confirmation of receivables with their best customers for fear of annoying the customers.
		Access to the board of directors meetings was limited to those meetings taking place before the balance sheet date.
		The auditor is appointed to the engagement too late to observe the client's counting of the inventory.
		The auditor is forced to call upon an outside expert to properly value antiques that are held in the client's vault as investments.

Section 302 of the Corporations Act prescribes that disclosing entities must:

		prepare half-year financial statements and a directors' report.
		have the half-year financial statements audited.
		have the half-year financial statements reviewed
		not lodge the half-year financial statements with ASIC

Which of these items does not form part of the financial report, as defined in the Corporations Act (s.295)

		A statement of cash flows for the year.
		Notes required by Accounting Standards.
		Any additional disclosures necessary to give a true and fair view.
		The directors' report.

The auditor of a reporting entity for which consolidated accounts are required has:

		the right of reliance on the work of the controlled entity's auditor.
		the right of access to the accounting records of controlled entities.
		the right to appoint the auditor of the controlled entity.
		all of the above.