This is for my own personal revision. I have attempted the questions and want to see if I am correct/incorrect. Thanks:

1.Which of the following procedures IS NOT performed during the planning stage of an audit?

a)Reviewing the client's minutes of the board of directors' meetings.

b)Reviewing the client's representation letter.

c)Visiting the client's premises and plant facilities.

d)Reviewing the client's policy and procedures manual.

2.When entering data into a sales transactions file, an employee enters the 3^rd and 4^th digits in an eight-digit customer code in an incorrect order. Which of the following controls will be MOST appropriate in helping to prevent such an error occurring?

a)Check digit.

b)Reasonableness check.

c)Credit limit check.

d)Field check.

3.For which field contained in a trade receivables transaction file would a valid code test be MOST appropriate?

a)Debtors account number.

b)Invoice amount.

c)Total balance.

d)Debtor's address.

4.The plant and equipment master file for your client contains the following fields:

1.Asset number

2.Asset description

3.Acquisition date

4.Cost of acquisition

5.Depreciation rate

6.Opening accumulated depreciation

7.Depreciation charge for the period

8.Closing accumulated depreciation

9.Proceeds of disposal

10.Profit/(loss) on disposal

In running your CAAT, which of the fields above would be BEST to include in order to extract a sample for physical inspection?

a)1, 2, 3, 5.

b)2, 3, 8, 4.

c)9, 10, 6, 1.

d)1, 2, 3, 4.

5.Using the same facts as in the question above, in order to test the valuation and allocation assertion for plant and equipment at year end you would NOT design an exception report listing details of plant and equipment where:

a)Field 10 > $x.

b)Field 5 < x%.

c)Field 8 < field 6.

d)Field 8> field 4.

6.Which of the following statements is NOT true of the test data approach when testing an IT system?

a)The test data need consist of only a sample of valid and invalid conditions provided by the client's programmer.

b)Only one transaction of each type need be tested.

c)The test data must consist of all possible valid and invalid conditions that an auditor intends to place the reliance on.

d)Test data are processed by the client's computer programs under the auditor's control.

7.Identify which of the following is NOT a test of controls.

a)Review of wage sheets for evidence of authorisation of overtime.

b)Inspecting the salary master file changes for review by the chief accountant.

c)Reviewing the performance of monthly payroll reconciliations.

d)Agreeing the number of employees' hours worked to timesheets.

8.Which of the following does NOT add to the evidence for the existence assertion in relation to an investment in listed shares?

a)A confirmation of shares held on the client's behalf.

b)A test of details of transactions of share purchases and sales during the year.

c)A review of share prices quoted at the financial year end.

d)Inspection of investment holding statements.

9.What does a signed audit report mean with respect to the 'possibility' of fraud within a company?

a)All fraud should have been detected.

b)It is unlikely that irregularities due to fraud have been detected.

c)An audit is not designed to detect fraud; therefore, an audit report gives no assurance as to whether fraud did not occur during the year.

d)There is a reasonable expectation that material irregularities due to fraud have been detected.

10.Assuming expert advice has been obtained, the auditor, when issuing an unmodified audit report, should:

a)Describe the work of an expert and the expert's identity.

b)Obtain permission of the expert before making reference to them.

c)Refer to the work of an expert.

d)Not refer to the work of an expert.