Question 1 (1 mark) Which of these would be a reason for adopting a predominantly substantive approach? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Accounts are affected by more than one transaction class Detection risk has been assessed as high C There are no significant control procedures that pertain to the assertion Control risk has been assessed as low b d Question 2 (1 mark) The initial phase of a financial statement audit involves the acceptance decision for the client in question. Which of the following is nota consideration during this phase of the audit? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Determining the existence of related parties b Preparation of the engagement letter C Ethical considerations Client evaluation $ Savo Q3 Question 3 (1 mark) Concerning errors, irregularities and illegal acts, the auditor should plan the audit with an attitude of: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a adversarial pursuit cautious mistrust seasoned pessimism professional scepticism b C Question 4 (1 mark) Which of these would be a necessary control to prevent a cash payment being made for an unauthorised purpose? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Invoices being required before cheques are issued Only authorised people being able to issue cheques C The duties of approving invoices and signing cheques are separated. J All of the above b PI Save Question 5 (1 mark) What is the purpose of tests of control? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a To obtain an understanding of the control over assets b To provide evidence as to the fairness of management's financial statement assertions To provide evidence about the effectiveness of the internal control structure, policies and procedures None of the above