Question 1

Which one of the following would NOT fit the description of a related- party transaction?

Accepted Answer

A)  Sales of merchandise between a parent company and its subsidiary 
B)  Exchange of equipment between two companies owned by the same person 
C)  An unusually large sale of merchandise to the company's best and largest customer 
D)  Loans to corporate officers at market rates of interest with a regular repayment schedule 
A)  Sales of merchandise between a parent company and its subsidiary 
B)  Exchange of equipment between two companies owned by the same person 
C)  An unusually large sale of merchandise to the company's best and largest customer 
D)  Loans to corporate officers at market rates of interest with a regular repayment schedule

Question 2

The official record of the meetings of the board of directors and shareholders is contained in the:

Accepted Answer

A)  charter. 
B)  constitution. 
C)  bylaws. 
D)  minutes. 
A)  charter. 
B)  constitution. 
C)  bylaws. 
D)  minutes.

Question 3

ACL is a software package which assists auditors by performing tests on a client's electronic data.

Accepted Answer

A) True 
 B)False

Question 4

Information such as organisation charts, flowcharts and questionnaires related to the auditor's understanding of internal control is typically included in the permanent files of the auditor's working papers.

Accepted Answer

A) True 
 B)False

Question 5

Because company policies are reflected in the financial statements, it is important that auditors:

Accepted Answer

A)  carefully evaluate basic policy decisions. 
B)  periodically review information on accounting policies to determine if there has been a change. 
C)  include the primary accounting policies in the permanent file. 
D)  all of the above 
A)  carefully evaluate basic policy decisions. 
B)  periodically review information on accounting policies to determine if there has been a change. 
C)  include the primary accounting policies in the permanent file. 
D)  all of the above

Question 6

The primary purpose of an engagement letter is to establish a clear understanding of the terms of the engagement between the client and the auditor.

Accepted Answer

A) True 
 B)False

Which one of the following would NOT fit the description of a related- party transaction?

The official record of the meetings of the board of directors and shareholders is contained in the:

ACL is a software package which assists auditors by performing tests on a client's electronic data.

Information such as organisation charts, flowcharts and questionnaires related to the auditor's understanding of internal control is typically included in the permanent files of the auditor's working papers.

Because company policies are reflected in the financial statements, it is important that auditors:

The primary purpose of an engagement letter is to establish a clear understanding of the terms of the engagement between the client and the auditor.

Demand for Audit and Assurance Services

Auditors Legal Environment

Audit Quality and Ethics

Audit Responsibilities and Objectives

Audit Evidence

Materiality and Risk

Internal Control and Control Risk

Fraud Auditing

The Impact of Information Technology on the Audit Process

Overall Audit Plan and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of Transactions

Completing Tests in the Sales and Collection Cycle: Accounts Receivable

Audit Sampling

Audit of Transaction Cycles and Financial Statement Balances I

Audit of Transaction Cycles and Financial Statement Balances II

Completing the Audit

Audit Reporting

Other Auditing and Assurance Engagements

Filters

Exam 6: Audit Planning and Documentation

Which one of the following would NOT fit the description of a related- party transaction?

The official record of the meetings of the board of directors and shareholders is contained in the:

ACL is a software package which assists auditors by performing tests on a client's electronic data.

Information such as organisation charts, flowcharts and questionnaires related to the auditor's understanding of internal control is typically included in the permanent files of the auditor's working papers.

Because company policies are reflected in the financial statements, it is important that auditors:

The primary purpose of an engagement letter is to establish a clear understanding of the terms of the engagement between the client and the auditor.

Demand for Audit and Assurance Services

Auditors Legal Environment

Audit Quality and Ethics

Audit Responsibilities and Objectives

Audit Evidence

Materiality and Risk

Internal Control and Control Risk

Fraud Auditing

The Impact of Information Technology on the Audit Process

Overall Audit Plan and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of Transactions

Completing Tests in the Sales and Collection Cycle: Accounts Receivable

Audit Sampling

Audit of Transaction Cycles and Financial Statement Balances I

Audit of Transaction Cycles and Financial Statement Balances II

Completing the Audit

Audit Reporting

Other Auditing and Assurance Engagements

Filters