Question 1

An audit to determine whether the auditee is following specific procedures or rules set down by some higher authority is classified as:

Accepted Answer

A)  a production audit. 
B)  an operational audit. 
C)  an audit of financial statements. 
D)  a compliance audit. 
A)  a production audit. 
B)  an operational audit. 
C)  an audit of financial statements. 
D)  a compliance audit.

Question 2

Discuss the similarities and differences between the roles of independent auditors, officers serving the Auditor- General, taxation auditors and internal auditors.

Accepted Answer

The roles of all four types of auditors

Question 3

Which one of the following is NOT a cause of information risk?

Accepted Answer

A)  Complex foreign exchange transactions 
B)  Remunerating management with a bonus scheme linked to reported income 
C)  Unexpected increased competition within the industry 
D)  Implementing quality control within the public accounting firm 
A)  Complex foreign exchange transactions 
B)  Remunerating management with a bonus scheme linked to reported income 
C)  Unexpected increased competition within the industry 
D)  Implementing quality control within the public accounting firm

Question 4

Discuss the advantages and disadvantages of making auditing standards more specific.

Accepted Answer

Advantages:
Provide clearer guidance for

Question 5

Firms providing audit services can be incorporated provided:

Accepted Answer

A)  they are not large partnerships. 
B)  all partners are listed as directors. 
C)  they obtain appropriate and adequate professional indemnity insurance. 
D)  the total income of the audit firm is above $2M. 
A)  they are not large partnerships. 
B)  all partners are listed as directors. 
C)  they obtain appropriate and adequate professional indemnity insurance. 
D)  the total income of the audit firm is above $2M.

Question 6

Public accounting firms utilise online resources and databases to:

Accepted Answer

A)  stay current with emerging business issues. 
B)  obtain industry data useful for auditing. 
C)  stay current with emerging standard setting issues. 
D)  all of the above 
A)  stay current with emerging business issues. 
B)  obtain industry data useful for auditing. 
C)  stay current with emerging standard setting issues. 
D)  all of the above

Question 7

Which one of the following is more difficult to evaluate objectively?

Accepted Answer

A)  Presentation of financial statements in accordance with applicable accounting standards 
B)  Efficiency and effectiveness of operations 
C)  Compliance with government regulations 
D)  All of the above are equally difficult. 
A)  Presentation of financial statements in accordance with applicable accounting standards 
B)  Efficiency and effectiveness of operations 
C)  Compliance with government regulations 
D)  All of the above are equally difficult.

Question 8

Discuss the impact of e- commerce on public accountants.

Accepted Answer

Almost all businesses rely on informatio

Question 9

The primary purpose of a performance audit is to evaluate whether an organisation is complying with its operating procedures and methods.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is a form of evidence used by auditors?

Accepted Answer

A)  Written communication obtained from entities outside the audit client 
B)  Oral statements from the audit client 
C)  The auditor's own observations 
D)  All of the above 
A)  Written communication obtained from entities outside the audit client 
B)  Oral statements from the audit client 
C)  The auditor's own observations 
D)  All of the above

Question 11

Which of the following is NOT a cause of information risk?

Accepted Answer

A)  Complex exchange transactions 
B)  Inaccurate financial statements 
C)  Remoteness of information 
D)  Large volumes of data 
A)  Complex exchange transactions 
B)  Inaccurate financial statements 
C)  Remoteness of information 
D)  Large volumes of data

Question 12

The criteria for evaluating quantitative information vary. For example, in the audit of historical financial statements by public accounting firms, the criteria are usually:

Accepted Answer

A)  regulations of the Australian Securities and Investment Commission. 
B)  regulations of the Australian Taxation Office. 
C)  applicable accounting standards. 
D)  generally accepted auditing standards. 
A)  regulations of the Australian Securities and Investment Commission. 
B)  regulations of the Australian Taxation Office. 
C)  applicable accounting standards. 
D)  generally accepted auditing standards.

Question 13

Which one of the following is NOT a means of reducing information risk?

Accepted Answer

A)  Implementing a system of quality control 
B)  Sharing the risk with management 
C)  Providing audited financial statements 
D)  Independent verification by the user 
A)  Implementing a system of quality control 
B)  Sharing the risk with management 
C)  Providing audited financial statements 
D)  Independent verification by the user

Question 14

An attestation service is a type of assurance service in which the public accounting firm issues a written communication that expresses a conclusion about the reliability of a written assertion of another party.

Accepted Answer

A) True 
 B)False

Question 15

An audit of financial statements is conducted to determine whether the:

Accepted Answer

A)  overall financial statements are stated in accordance with specified criteria. 
B)  organisation is operating efficiently and effectively. 
C)  auditee is following specific procedures or rules set down by a peer group authority. 
D)  none of the above 
A)  overall financial statements are stated in accordance with specified criteria. 
B)  organisation is operating efficiently and effectively. 
C)  auditee is following specific procedures or rules set down by a peer group authority. 
D)  none of the above

Question 16

Statements of Auditing Standards (ASAs) are issued by:

Accepted Answer

A)  the Australian Securities Exchange. 
B)  CPA Australia. 
C)  the Institute of Chartered Accountants in Australia. 
D)  Australian Auditing and Assurance Standards Board. 
A)  the Australian Securities Exchange. 
B)  CPA Australia. 
C)  the Institute of Chartered Accountants in Australia. 
D)  Australian Auditing and Assurance Standards Board.

Question 17

An examination of part of an organisation's procedures and methods for the purpose of evaluating efficiency and effectiveness in the manufacturing department is what type of audit?

Accepted Answer

A)  Performance audit 
B)  Compliance audit 
C)  Production audit 
D)  Financial statement audit 
A)  Performance audit 
B)  Compliance audit 
C)  Production audit 
D)  Financial statement audit

Question 18

List the six mandatory elements of a system of quality control for audit engagements listed under ASA 220.

Accepted Answer

· leadership responsibilities

Question 19

Information risk increases as business organisations become larger.

Accepted Answer

A) True 
 B)False

Question 20

Discuss the differences and similarities between the roles of accountants and auditors. What additional expertise must an auditor possess beyond that of an accountant?

Accepted Answer

The role of accountants is to record, cl

An audit to determine whether the auditee is following specific procedures or rules set down by some higher authority is classified as:

Discuss the similarities and differences between the roles of independent auditors, officers serving the Auditor- General, taxation auditors and internal auditors.

Which one of the following is NOT a cause of information risk?

Discuss the advantages and disadvantages of making auditing standards more specific.

Firms providing audit services can be incorporated provided:

Public accounting firms utilise online resources and databases to:

Which one of the following is more difficult to evaluate objectively?

Discuss the impact of e- commerce on public accountants.

The primary purpose of a performance audit is to evaluate whether an organisation is complying with its operating procedures and methods.

Which of the following is a form of evidence used by auditors?

Which of the following is NOT a cause of information risk?

The criteria for evaluating quantitative information vary. For example, in the audit of historical financial statements by public accounting firms, the criteria are usually:

Which one of the following is NOT a means of reducing information risk?

An attestation service is a type of assurance service in which the public accounting firm issues a written communication that expresses a conclusion about the reliability of a written assertion of another party.

An audit of financial statements is conducted to determine whether the:

Statements of Auditing Standards (ASAs) are issued by:

An examination of part of an organisation's procedures and methods for the purpose of evaluating efficiency and effectiveness in the manufacturing department is what type of audit?

List the six mandatory elements of a system of quality control for audit engagements listed under ASA 220.

Information risk increases as business organisations become larger.

Discuss the differences and similarities between the roles of accountants and auditors. What additional expertise must an auditor possess beyond that of an accountant?

Auditors Legal Environment

Audit Quality and Ethics

Audit Responsibilities and Objectives

Audit Evidence

Audit Planning and Documentation

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 1: Demand for Audit and Assurance Services

An audit to determine whether the auditee is following specific procedures or rules set down by some higher authority is classified as:

Discuss the similarities and differences between the roles of independent auditors, officers serving the Auditor- General, taxation auditors and internal auditors.

Which one of the following is NOT a cause of information risk?

Discuss the advantages and disadvantages of making auditing standards more specific.

Firms providing audit services can be incorporated provided:

Public accounting firms utilise online resources and databases to:

Which one of the following is more difficult to evaluate objectively?

Discuss the impact of e- commerce on public accountants.

The primary purpose of a performance audit is to evaluate whether an organisation is complying with its operating procedures and methods.

Which of the following is a form of evidence used by auditors?

Which of the following is NOT a cause of information risk?

The criteria for evaluating quantitative information vary. For example, in the audit of historical financial statements by public accounting firms, the criteria are usually:

Which one of the following is NOT a means of reducing information risk?

An attestation service is a type of assurance service in which the public accounting firm issues a written communication that expresses a conclusion about the reliability of a written assertion of another party.

An audit of financial statements is conducted to determine whether the:

Statements of Auditing Standards (ASAs) are issued by:

An examination of part of an organisation's procedures and methods for the purpose of evaluating efficiency and effectiveness in the manufacturing department is what type of audit?

List the six mandatory elements of a system of quality control for audit engagements listed under ASA 220.

Information risk increases as business organisations become larger.

Discuss the differences and similarities between the roles of accountants and auditors. What additional expertise must an auditor possess beyond that of an accountant?

Auditors Legal Environment

Audit Quality and Ethics

Audit Responsibilities and Objectives

Audit Evidence

Audit Planning and Documentation

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