Q1) Which of the following statements about the use of an Emphasis of Matter paragraph in an auditor's report are correct?

(i) It refers to a specific note to the financial statements.

(ii) It is used to highlight matters that have been accounted for correctly.

(iii) Its placement in the report is a matter of auditor judgement.

(iv) It is used to explain a qualified opinion.

(ii) and (iv)

(i), (ii) and (iv)

(i) and (iii)

(i), (ii) and (iii)

Q2) Which of the following is a test of control in the audit of tangible non-current assets?

Review authorisation of the depreciation rates used

Walk-through the process for authorising capital expenditure

Physically inspect a sample of tangible non-current assets

Reperform a sample of depreciation calculations