Question 21. According to ISA 402, Audit Considerations Relating to an Entity Using a Service Organization, which of the following shall the auditor perform if the auditor chooses to use the report of a Service Organization? Refer to the fact that the report has been used in the unmodified auditor's report Perform substantive testing at the Service Organisation Make enquiries concerning the Service Organisation's auditor's professional competence in the context of the specific assignment Make enquiries concerning the Service Organisation's auditor's professional competence in the context of the specific assignment undertaken by the service organization auditor Obtain written confirmation from management as to the adequacy of controls at the Service Question 22. ISA 200 overall objectives of the independent auditor and the conduct of an audit in accordance with international standards on auditing requires the auditor to obtain sufficient appropriate audit evidence to reduce audit risk to an acceptably low level". How is audit risk defined? The risk that an auditor fails to detect fraudulent financial reporting within the financial statements. The risk that an auditor expresses an inappropriate opinion when the financial statements The risk that an auditor expresses an inappropriate opinion when the financial statements are materially misstated. The risk that an auditor fails to minimise the risk of material misstatement in the financial statements. The risk that an auditor is unable to express an opinion on the financial statements. Question 23. In which one of the following circumstances is the auditor of a company most likely to include an emphasis of matter paragraph in the audit report? Related party disclosures have not been made in the notes to the financial statements Prior year corresponding amounts have not been disclosed A note to the accounts refers to significant uncertainties relating to legal proceedings which are constantly being monitored by the directors A note to the accounts describes the effecto A note to the accounts describes the effect of a material departure from an applicable International Financial Reporting Standard Question 24. What is the purpose of a walk-through test? To obtain a knowledge of the design of the accounting and internal control system To test the correct recording of transactions as part of a substantive procedure To test controls within an accounting system so as to reduce the level of substantive procedures To support a control risk assessment which is less than high Question 25. Which of the following boards was established with the specific aim of increasing investor confidence in IFAC's activities and pronouncements? International Auditing and Assurance Standards Board (IAASB) International Ethics Standards Board for Accountants(IESBA) Public Interest Oversight Board 1 International Accounting Education Standards Board (IAESB) Question 26. Maple Co's auditors were appointed 10 years ago, during which time the same audit partner and audit manager have worked on the audit. Which of the following general principles in relation to the conduct of Maple Co's audit is at risk? (1) Objectivity (1) Professional competence (11) Professional skepticism () and (16) (i) and (1) () and (0 Question 27. Which of the following statements in respect of the regulatory framework for auditing is NOT a true statement? The IAASB's main objective is to promote good ethical practices globally Countries which adopt ISAs may amend or adapt ISAs to ensure that they comply with national legislation The IAASB involves national standard setters when developing new ISAS Part of the IAASB's mission is to strengthen public confidence in the global auditing and assurance profession Question 28. Which of the following should NOT be a consideration when performing a review of audit working papers in relation to a section of the audit file? The time the audit work took to be completed Whether conclusions are consistent with those in other sections of the audit file Tif all significant audit matters have been resolved Whether audit objectives have been achieved Question 29. Which of the following is LEAST likely to be audited by means of a substantive analytical procedure? The allowance against doubtful receivables An accrual in relation to holiday pay A payment received from an insurance claim Rental income Question 30. "Proof in total" is an independent check on the total value of a population, and is an example of a substantive analytical procedure. Which of the following is LEAST likely to be audited by means of a proof in total? Depreciation expense Interest received Payroll costs Profit on disposal of a non-current asset Question 21. According to ISA 402, Audit Considerations Relating to an Entity Using a Service Organization, which of the following shall the auditor perform if the auditor chooses to use the report of a Service Organization? a-Refer to the fact that the report has been used in the unmodified auditor's report. b- Perform substantive testing at the Service Organisation. c- Make enquiries concerning the Service Organisation's auditor's professional competence in the context of the specific assignment undertaken by the service organization auditor. d-Obtain written confirmation from management as to the adequacy of controls at the Service Organisation. Manyes 100% Normal text Roboto 10 + BI U A 1 + 1 . . 2 3 4 5 Question 22. ISA 200 'overall objectives of the independent auditor and the conduct of an audit in accordance with international standards on auditing" requires the auditor to obtain sufficient appropriate audit evidence to reduce audit risk to an acceptably low level". How is audit risk defined? The risk that an auditor fails to detect fraudulent financial reporting within the financial statements. The risk that an auditor expresses an inappropriate opinion when the financial statements The risk that an auditor expresses an inappropriate opinion when the financial statements are materially misstated. The risk that an auditor fails to minimise the risk of material misstatement in the financial statements. The risk that an auditor is unable to express an opinion on the financial statements. Normal text Roboto 10 + BIU A 1.1 2 3 . 5 The risk that an auditor is unable to express an opinion on the financial statements. Question 23. In which one of the following circumstances is the auditor of a company most likely to include an emphasis of matter paragraph in the audit report? Related party disclosures have not been made in the notes to the financial statements Prior year corresponding amounts have not been disclosed A note to the accounts refers to significant uncertainties relating to legal proceedings which are constantly being monitored by the directors A note to the accounts describes the effect o A note to the accounts describes the effect of a material departure from an applicable International Fipancial Reporting Standard Question 24. What is the purpose of a walk-through test? To obtain a knowledge of the design of the accounting and internal control system To test the correct recording of transactions as part of a substantive procedure To test controls within an accounting system so as to reduce the level of substantive procedures To support a control risk assessment which is less than high Question 25. Which of the following boards was established with the specific aim of increasing investor confidence in IFAC's activities and pronouncements? International Auditing and Assurance Standards Board (IAASB) International Ethics Standards Board for Accountants(IESBA) Public Interest Oversight Board International Accounting Education Standards Board (IAESB) 1 Question 26. Maple Co's auditors were appointed 10 years ago, during which time the same audit partner and audit manager have worked on the audit. Which of the following general principles in relation to the conduct of Maple Co's audit is at risk? Objectivity (ii) Professional competence (ili) Professional skepticism (1) and (10) (ii) and (111) () and (11) . (i) and (111) Question 27. Which of the following statements in respect of the regulatory framework for auditing is NOT a true statement? The IAASB's main objective is to promote good ethical practices globally Countries which adopt ISAs may amend or adapt ISAs to ensure that they comply with national legislation The IAASB involves national standard setters when developing new ISAS Part of the IAASB's mission is to strengthen public confidence in the global auditing and assurance profession Question 28. Which of the following should NOT be a consideration when performing a review of audit working papers in relation to a section of the audit file? The time the audit work took to be completed Whether conclusions are consistent with those in other sections of the audit file If all significant audit matters have been resolved 1 Whether audit objectives have been achieved Question 29. Which of the following is LEAST likely to be audited by means of a substantive analytical procedure? The allowance against doubtful receivables An accrual in relation to holiday pay A payment received from an insurance claim Rental income Question 30. "Proof in total" is an independent check on the total value of a population, and is an example of a substantive analytical procedure. Which of the following is LEAST likely to be audited by means of a proof in total? Depreciation expense Interest received Payroll costs Profit on disposal of a non-current asset Question 21. According to ISA 402, Audit Considerations Relating to an Entity Using a Service Organization, which of the following shall the auditor perform if the auditor chooses to use the report of a Service Organization? Refer to the fact that the report has been used in the unmodified auditor's report Perform substantive testing at the Service Organisation Make enquiries concerning the Service Organisation's auditor's professional competence in the context of the specific assignment Make enquiries concerning the Service Organisation's auditor's professional competence in the context of the specific assignment undertaken by the service organization auditor Obtain written confirmation from management as to the adequacy of controls at the Service Question 22. ISA 200 overall objectives of the independent auditor and the conduct of an audit in accordance with international standards on auditing requires the auditor to obtain sufficient appropriate audit evidence to reduce audit risk to an acceptably low level". How is audit risk defined? The risk that an auditor fails to detect fraudulent financial reporting within the financial statements. The risk that an auditor expresses an inappropriate opinion when the financial statements The risk that an auditor expresses an inappropriate opinion when the financial statements are materially misstated. The risk that an auditor fails to minimise the risk of material misstatement in the financial statements. The risk that an auditor is unable to express an opinion on the financial statements. Question 23. In which one of the following circumstances is the auditor of a company most likely to include an emphasis of matter paragraph in the audit report? Related party disclosures have not been made in the notes to the financial statements Prior year corresponding amounts have not been disclosed A note to the accounts refers to significant uncertainties relating to legal proceedings which are constantly being monitored by the directors A note to the accounts describes the effecto A note to the accounts describes the effect of a material departure from an applicable International Financial Reporting Standard Question 24. What is the purpose of a walk-through test? To obtain a knowledge of the design of the accounting and internal control system To test the correct recording of transactions as part of a substantive procedure To test controls within an accounting system so as to reduce the level of substantive procedures To support a control risk assessment which is less than high Question 25. Which of the following boards was established with the specific aim of increasing investor confidence in IFAC's activities and pronouncements? International Auditing and Assurance Standards Board (IAASB) International Ethics Standards Board for Accountants(IESBA) Public Interest Oversight Board 1 International Accounting Education Standards Board (IAESB) Question 26. Maple Co's auditors were appointed 10 years ago, during which time the same audit partner and audit manager have worked on the audit. Which of the following general principles in relation to the conduct of Maple Co's audit is at risk? (1) Objectivity (1) Professional competence (11) Professional skepticism () and (16) (i) and (1) () and (0 Question 27. Which of the following statements in respect of the regulatory framework for auditing is NOT a true statement? The IAASB's main objective is to promote good ethical practices globally Countries which adopt ISAs may amend or adapt ISAs to ensure that they comply with national legislation The IAASB involves national standard setters when developing new ISAS Part of the IAASB's mission is to strengthen public confidence in the global auditing and assurance profession Question 28. Which of the following should NOT be a consideration when performing a review of audit working papers in relation to a section of the audit file? The time the audit work took to be completed Whether conclusions are consistent with those in other sections of the audit file Tif all significant audit matters have been resolved Whether audit objectives have been achieved Question 29. Which of the following is LEAST likely to be audited by means of a substantive analytical procedure? The allowance against doubtful receivables An accrual in relation to holiday pay A payment received from an insurance claim Rental income Question 30. "Proof in total" is an independent check on the total value of a population, and is an example of a substantive analytical procedure. Which of the following is LEAST likely to be audited by means of a proof in total? Depreciation expense Interest received Payroll costs Profit on disposal of a non-current asset Question 21. According to ISA 402, Audit Considerations Relating to an Entity Using a Service Organization, which of the following shall the auditor perform if the auditor chooses to use the report of a Service Organization? a-Refer to the fact that the report has been used in the unmodified auditor's report. b- Perform substantive testing at the Service Organisation. c- Make enquiries concerning the Service Organisation's auditor's professional competence in the context of the specific assignment undertaken by the service organization auditor. d-Obtain written confirmation from management as to the adequacy of controls at the Service Organisation. Manyes 100% Normal text Roboto 10 + BI U A 1 + 1 . . 2 3 4 5 Question 22. ISA 200 'overall objectives of the independent auditor and the conduct of an audit in accordance with international standards on auditing" requires the auditor to obtain sufficient appropriate audit evidence to reduce audit risk to an acceptably low level". How is audit risk defined? The risk that an auditor fails to detect fraudulent financial reporting within the financial statements. The risk that an auditor expresses an inappropriate opinion when the financial statements The risk that an auditor expresses an inappropriate opinion when the financial statements are materially misstated. The risk that an auditor fails to minimise the risk of material misstatement in the financial statements. The risk that an auditor is unable to express an opinion on the financial statements. Normal text Roboto 10 + BIU A 1.1 2 3 . 5 The risk that an auditor is unable to express an opinion on the financial statements. Question 23. In which one of the following circumstances is the auditor of a company most likely to include an emphasis of matter paragraph in the audit report? Related party disclosures have not been made in the notes to the financial statements Prior year corresponding amounts have not been disclosed A note to the accounts refers to significant uncertainties relating to legal proceedings which are constantly being monitored by the directors A note to the accounts describes the effect o A note to the accounts describes the effect of a material departure from an applicable International Fipancial Reporting Standard Question 24. What is the purpose of a walk-through test? To obtain a knowledge of the design of the accounting and internal control system To test the correct recording of transactions as part of a substantive procedure To test controls within an accounting system so as to reduce the level of substantive procedures To support a control risk assessment which is less than high Question 25. Which of the following boards was established with the specific aim of increasing investor confidence in IFAC's activities and pronouncements? International Auditing and Assurance Standards Board (IAASB) International Ethics Standards Board for Accountants(IESBA) Public Interest Oversight Board International Accounting Education Standards Board (IAESB) 1 Question 26. Maple Co's auditors were appointed 10 years ago, during which time the same audit partner and audit manager have worked on the audit. Which of the following general principles in relation to the conduct of Maple Co's audit is at risk? Objectivity (ii) Professional competence (ili) Professional skepticism (1) and (10) (ii) and (111) () and (11) . (i) and (111) Question 27. Which of the following statements in respect of the regulatory framework for auditing is NOT a true statement? The IAASB's main objective is to promote good ethical practices globally Countries which adopt ISAs may amend or adapt ISAs to ensure that they comply with national legislation The IAASB involves national standard setters when developing new ISAS Part of the IAASB's mission is to strengthen public confidence in the global auditing and assurance profession Question 28. Which of the following should NOT be a consideration when performing a review of audit working papers in relation to a section of the audit file? The time the audit work took to be completed Whether conclusions are consistent with those in other sections of the audit file If all significant audit matters have been resolved 1 Whether audit objectives have been achieved Question 29. Which of the following is LEAST likely to be audited by means of a substantive analytical procedure? The allowance against doubtful receivables An accrual in relation to holiday pay A payment received from an insurance claim Rental income Question 30. "Proof in total" is an independent check on the total value of a population, and is an example of a substantive analytical procedure. Which of the following is LEAST likely to be audited by means of a proof in total? Depreciation expense Interest received Payroll costs Profit on disposal of a non-current asset