Who is responsible for the internal controls of an entity?

a)The external auditor

b)The internal auditor

c)Management

d)All three above

25.Who is a prospective auditor required to contact before they can accept an engagement?

a)The existing auditor

b)The company's bank

c)The company'ssolicitors

d)All three above

26.When is an auditor required to provide an independence declaration?

a)On new engagements only

b)All engagements

c)Listed companies only

d)Disclosing entities

27.An auditor would most likely use the work of an expert in which of the following engagements?

a)Attending the stock count of a jeweller

b)Attending a stock count for a car retailer

c)Attending a stock count of manufacturer

d)Attending the stock count of a medical supplier

28.Analytical procedures are required to be undertaken in

a)The planning stage only

b)Planning and review stage

c)Review stage only

d)Planning, testing and review stages

29.Which of the following factors presents an opportunity for a fraud?

a)Strong industry growth

b)High turnover of staff

c)Inappropriate revenue recognition

d)High proportion of salary is in form of bonuses

30.Which management assertion is most relevant in the example? The auditor of XYZ obtained a certificate to verify the inventory held in an off- site warehouse.

a)Existence

b)Valuation

c)Rights and obligations

d)Completeness