Q16......

Preliminary Engagement activities, audit strategy and audit plan are three distinct phases in audit planning, each of them have specific purposes. The purpose of an audit strategy is to

a.

Determine the audit procedures

b.

Determine the resources for an engagement

c.

Understanding the terms of engagement

d.

Assess the risks of an engagement

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Q17....

Audit strategy does not include nor involve:

a.

Extent of planned risk assessment procedures

b.

Scope, timing and direction of audit

c.

Nature, timing and extent of resources required

d.

Consideration of the results of preliminary engagement activities

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Q18..........

Auditor of an entity wants to know the reasons for the differences in the payment of rent from the rental agreement. Which procedure is most appropriate?

a.

Re-Performance

b.

Observation

c.

Inquiry

d.

Re-calculation

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Q19..........

During a year, a firm outsourced the transport services at the rate of 100 Bz per ton for 1 kilometer. The total quantity transported was 600 tons and the total distance was 150 kilometers. Transport charges varied by 20% during the year. What are the maximum and minimum transport charges you may consider fair as an auditor?

a.

RO 9600-RO 10800

b.

RO 7200-RO 9600

c.

RO 9600-RO 12400

d.

RO 7200-RO10800

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Q20..................

An entity has prepared its financial statements using fair presentation framework but departed from one of the requirements of the framework. The auditor should:

a.

Consider the financial statements as prepared under fair presentation framework

b.

Modify the opinion

c.

Express an unmodified opinion

d.

Insist the entity to use fair presentation framework instead.

Clear my choice