Overstatement of profits can arise during periods of inflation. This then leads to a number of other consequences. Which of the following is NOT a likely consequence of overstatement of profits?\ a) Higher wage demands from employees\ b) Higher tax bills\ c) Reduced dividends to shareholders\ d) Overstated earning per share (EPS)\ Which of the following statements about the economic environment of a country are likely indicators that the economy is hyperinflationary? (Select all that apply)\ a) Interest rate, wages and prices are linked to a price index.\ b) The general population attempts to keep the amount of local currency held at a minimum either through investing in non-monetary assets, or where possible, converting their local currency into the currency of a country with stable economy.\ c) An increase in the number of strikes by members of a labour-union.\ d) Sales and purchases on credit are priced to compensate for the expected loss in value during the credit period.\ e) The cumulative inflation rate over three years is approaching

80%

.\ Which of the following describe some of IAS 29 's restatement procedures? (Select all that apply)\ a) Monetary items are restated.\ b) Monetary items are not restated.\ c) All non-monetary items are restated.\ d) Non-monetary items carried at amounts that are current at the end of the reporting period, such as market value or net realizable value, are restated.\ e) None of the above.\ What are the steps of auditing process? Select one of the steps as an example and briefly describe only the selected step (10 Points).\ When assessing the engagement risk levels: (10 Points)\ a) What are the types of engagement risk levels?\ b) Please describe actions to be taken when the risk level is higher.\ c) Please describe common steps of assessing engagement risk.\ What are the pre-engagement activities? Please select one of the pre-engagement activities and briefly describe selected activity.\ What are the standard potential errors in an audit engagement? Briefly describe one of them (S: Module 3 Session 1)\ What are the steps of preliminary planning?

15) Overstatement of profits can arise during periods of inflation. This then leads to a number of other consequences. Which of the following is NOT a likely consequence of overstatement of profits? a) Higher wage demands from employees b) Higher tax bills c) Reduced dividends to shareholders d) Overstated earning per share (EPS) 16) Which of the following statements about the economic environment of a country are likely indicators that the economy is hyperinflationary? (Select all that apply) a) Interest rate, wages and prices are linked to a price index. b) The general population attempts to keep the amount of local currency held at a minimum either through investing in non-monetary assets, or where possible, converting their local currency into the currency of a country with stable economy. c) An increase in the number of strikes by members of a labour-union. d) Sales and purchases on credit are priced to compensate for the expected loss in value during the credit period. e) The cumulative inflation rate over three years is approaching 80%. 17) Which of the following describe some of IAS 29 's restatement procedures? (Select all that apply) a) Monetary items are restated. b) Monetary items are not restated. c) All non-monetary items are restated. d) Non-monetary items carried at amounts that are current at the end of the reporting period, such as market value or net realizable value, are restated. e) None of the above. 18) What are the steps of auditing process? Select one of the steps as an example and briefly describe only the selected step (10 Points). 19) When assessing the engagement risk levels: (10 Points) a) What are the types of engagement risk levels? b) Please describe actions to be taken when the risk level is higher. c) Please describe common steps of assessing engagement risk. 20) What are the pre-engagement activities? Please select one of the pre-engagement activities and briefly describe selected activity. 21) What are the standard potential errors in an audit engagement? Briefly describe one of them (S: Module 3 Session 1) 22) What are the steps of preliminary planning