panying m 1) Responsibility for preparing the annual financial statements and the accom belongs to. A the auditor management C both management and the auditor equally D. management for the statements and the auditor for the notes 2) The manner in which companies are managed and the nature of accountability of managers to the owners is called A. corporate regulations corporate governance C. corporate administration D. corporate compliance. /3) According to the Cadbury Committee Report (1992), independent non-executive directors should be appointed to the board of listed UK companies because: A. It is cheaper to recruit non-executive directors than executive directors. Non-executive directors are more experienced than executive directors. Non-executive directors are perceived to be more independent than executive rectors D. It is more difficult to remove non-executive directors from the board than executive directors. 4) An audit junior has just inherited some shares in a company, which also happens to be one of his audit firm's biggest clients. Which of the following statements is CORRECT? As the audit junior isn't a significant enough member of the team to warrant any action, he should keep the shares. A. B. The audit junior should resign immediately. The audit junior should report the shares to the ethics partner and act upon any instructions given D. As the audit junior doesn't work on the audit of that particular client, there is no conflict of interest. 5) Which of the following instances is an example of when it is advisable NOT to use sampling in a transaction audit? 1. In a fraud investigation. U2. When there are few transactions 3. When it is difficult to get a random sample. 4. When the population is small. A. 1, 2, and 3 R. 2, 3, and 4 C. 1, 2, and 4 D. 1, 3, and 4 6) A system walkthrough is primarily used to help the auditor to: A. test the ending account balances B. test the details of transactions determine whether internal controls are in place determine whether the audit engagement should be accepted. D