Question 1

Which of the following can be significantly affected by an audit?

Accepted Answer

A)  The risk- free interest rate 
B)  Business risk 
C)  Information risk 
D)  All of the above 
A)  The risk- free interest rate 
B)  Business risk 
C)  Information risk 
D)  All of the above

Question 2

Publicly traded companies have annual financial statement audits:

Accepted Answer

A)  external users rely on it. 
B)  to obtain financing from banks. 
C)  because they are required to under the Corporations Act. 
D)  all of the above 
A)  external users rely on it. 
B)  to obtain financing from banks. 
C)  because they are required to under the Corporations Act. 
D)  all of the above

Question 3

Which of the following can be regarded as being solely 'compliance' audits?

Accepted Answer

A)  Auditor- General's examinations of the returns of taxpayers 
B)  Evaluating whether a computerised payroll system is operating effectively 
C)  Determining if bank requirements for loan continuation have been met 
D)  An internal auditor's review of his employer's noncurrent asset purchases 
A)  Auditor- General's examinations of the returns of taxpayers 
B)  Evaluating whether a computerised payroll system is operating effectively 
C)  Determining if bank requirements for loan continuation have been met 
D)  An internal auditor's review of his employer's noncurrent asset purchases

Question 4

Providing quantitative information that management and others can use to make decisions is the function of:

Accepted Answer

A)  management information systems. 
B)  accounting. 
C)  finance. 
D)  auditing. 
A)  management information systems. 
B)  accounting. 
C)  finance. 
D)  auditing.

Question 5

Auditing standards (ASAs):

Accepted Answer

A)  establish mandatory requirements. 
B)  have the 'force of law' under the Corporations Act 2001. 
C)  are issued by the AUASB. 
D)  all of the above 
A)  establish mandatory requirements. 
B)  have the 'force of law' under the Corporations Act 2001. 
C)  are issued by the AUASB. 
D)  all of the above

Question 6

The primary purpose of a compliance audit is to determine whether the overall financial statements are in compliance with generally accepted accounting principles.

Accepted Answer

A) True 
 B)False

Question 7

Results of compliance audits are typically reported to the Auditor- General.

Accepted Answer

A) True 
 B)False

Question 8

Completion of Client Evaluation forms is an example of the quality control objective of Ethical Requirements.

Accepted Answer

A) True 
 B)False

Question 9

The process of recording, classifying, and summarising economic events in a logical manner for the purpose of providing financial information for decision making is:

Accepted Answer

A)  auditing. 
B)  accounting. 
C)  finance. 
D)  economics. 
A)  auditing. 
B)  accounting. 
C)  finance. 
D)  economics.

Question 10

Assessing that a company's policies effectively ensure the company's compliance with environmental standards and laws is:

Accepted Answer

A)  part of the internal auditor's responsibilities. 
B)  an example of a business performance measurement service. 
C)  an example of an assurance service. 
D)  part of the financial statement audit process. 
A)  part of the internal auditor's responsibilities. 
B)  an example of a business performance measurement service. 
C)  an example of an assurance service. 
D)  part of the financial statement audit process.

Question 11

As businesses become more complex and need more reliable information, public accountants play a vital role in:

Accepted Answer

A)  providing tax services. 
B)  providing assurance on information other than financial reports. 
C)  providing business advisory services. 
D)  all of the above 
A)  providing tax services. 
B)  providing assurance on information other than financial reports. 
C)  providing business advisory services. 
D)  all of the above

Question 12

To do an audit, it is necessary for there to be information in a verifiable form and some criteria by which the auditor can evaluate the information. (A) What information and criteria would an independent public accounting firm use when auditing a company's financial statements? (B) What information and criteria would a taxation auditor use when auditing that same company's tax return? (C) What information and criteria would an internal auditor use when performing a performance audit to evaluate whether the company's computerised payroll processing system is operating efficiently and effectively?

Accepted Answer

(A) The information used by a public acc

Question 13

Which of the following is NOT an attestation service?

Accepted Answer

A)  Other attestation services 
B)  Audit 
C)  Compilations 
D)  Review 
A)  Other attestation services 
B)  Audit 
C)  Compilations 
D)  Review

Question 14

Which one of the following is NOT one of the six objectives of quality control?

Accepted Answer

A)  Professional development 
B)  Ethical requirements 
C)  Monitoring 
D)  Leadership responsibilities 
A)  Professional development 
B)  Ethical requirements 
C)  Monitoring 
D)  Leadership responsibilities

Question 15

Discuss the various categories of services provided by public accounting firms.

Accepted Answer

Six categories of services provided by p

Question 16

In 'auditing' accounting data, the primary concern is with:

Accepted Answer

A)  determining whether recorded information properly reflects the economic events that occurred during the accounting period. 
B)  analysing the nonfinancial information to be sure that it complies with government requirements. 
C)  determining if taxable income has been calculated correctly. 
D)  determining if fraud has occurred. 
A)  determining whether recorded information properly reflects the economic events that occurred during the accounting period. 
B)  analysing the nonfinancial information to be sure that it complies with government requirements. 
C)  determining if taxable income has been calculated correctly. 
D)  determining if fraud has occurred.

Question 17

Explain what is meant by information risk, and discuss the four causes of this risk.

Accepted Answer

Information risk is the possibility that

Question 18

The primary role of the Auditor- General is the enforcement of the federal tax laws as defined by Parliament and interpreted by the courts.

Accepted Answer

A) True 
 B)False

Question 19

An internal auditor should ideally report to:

Accepted Answer

A)  the chief finance officer. 
B)  the audit committee. 
C)  the ASIC. 
D)  the external auditors. 
A)  the chief finance officer. 
B)  the audit committee. 
C)  the ASIC. 
D)  the external auditors.

Question 20

Auditors are valued for their experience in assisting companies to improve operations and:

Accepted Answer

A)  competence. 
B)  independence in providing assurances. 
C)  technical knowledge. 
D)  all of the above 
A)  competence. 
B)  independence in providing assurances. 
C)  technical knowledge. 
D)  all of the above

Which of the following can be significantly affected by an audit?

Publicly traded companies have annual financial statement audits:

Which of the following can be regarded as being solely 'compliance' audits?

Providing quantitative information that management and others can use to make decisions is the function of:

Auditing standards (ASAs):

The primary purpose of a compliance audit is to determine whether the overall financial statements are in compliance with generally accepted accounting principles.

Results of compliance audits are typically reported to the Auditor- General.

Completion of Client Evaluation forms is an example of the quality control objective of Ethical Requirements.

The process of recording, classifying, and summarising economic events in a logical manner for the purpose of providing financial information for decision making is:

Assessing that a company's policies effectively ensure the company's compliance with environmental standards and laws is:

As businesses become more complex and need more reliable information, public accountants play a vital role in:

Which of the following is NOT an attestation service?

Which one of the following is NOT one of the six objectives of quality control?

Discuss the various categories of services provided by public accounting firms.

In 'auditing' accounting data, the primary concern is with:

Explain what is meant by information risk, and discuss the four causes of this risk.

The primary role of the Auditor- General is the enforcement of the federal tax laws as defined by Parliament and interpreted by the courts.

An internal auditor should ideally report to:

Auditors are valued for their experience in assisting companies to improve operations and:

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

Which of the following can be significantly affected by an audit?

Publicly traded companies have annual financial statement audits:

Which of the following can be regarded as being solely 'compliance' audits?

Providing quantitative information that management and others can use to make decisions is the function of:

Auditing standards (ASAs):

The primary purpose of a compliance audit is to determine whether the overall financial statements are in compliance with generally accepted accounting principles.

Results of compliance audits are typically reported to the Auditor- General.

Completion of Client Evaluation forms is an example of the quality control objective of Ethical Requirements.

The process of recording, classifying, and summarising economic events in a logical manner for the purpose of providing financial information for decision making is:

Assessing that a company's policies effectively ensure the company's compliance with environmental standards and laws is:

As businesses become more complex and need more reliable information, public accountants play a vital role in:

Which of the following is NOT an attestation service?

Which one of the following is NOT one of the six objectives of quality control?

Discuss the various categories of services provided by public accounting firms.

In 'auditing' accounting data, the primary concern is with:

Explain what is meant by information risk, and discuss the four causes of this risk.

The primary role of the Auditor- General is the enforcement of the federal tax laws as defined by Parliament and interpreted by the courts.

An internal auditor should ideally report to:

Auditors are valued for their experience in assisting companies to improve operations and:

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