Exam 4: Overview of the Audit Financial Statements

For each of the following groups explain the relationship with the auditors and how they may interact. -The shareholders -The board of directors and the audit committee -Internal auditors -Management

List the requirements necessary for an individual to become a registered auditor.

Which of the following is a benefit of the ASIC register of company auditors?

The removal and resignation of auditors must be :

Which of the following are the international auditing standards?

S. 308.of the Corporations Act requires certain implied conditions to be reported on in an audit report if there is any deficiency, or failure to comply. Which of the following is one of those implied conditions?

The Australian Securities Exchange (ASX)

The Corporations Act does not require the audit of which of the following type of entity, except in specified circumstances?

An engagement letter contains express or implied terms of the contractual arrangement with the client. Which of the following is not one of those terms?

During the course of the audit engagement, the external auditor suggests an adjustment to the financial statements. The suggestion is accepted by management without argument. This suggests that:

ABC Ltd recently established an audit committee in compliance with the Australian Stock Exchange listing requirements. The committee is made up of Ian Wright, John Small and Todd Smith. Ian is an executive of the company and has worked his way up from a factory worker through to management. Ian is the chairperson of the audit committee. John is not a member of management and is therefore a non-executive director but he does serve on a number of boards. John's background is in accounting and before he became a director he was the CFO of a large corporation for many years. Todd is the chairperson of the board of directors and is an executive of the company. Todd's background is in manufacturing and he has been with the current company for 5.years. The committee has just completed having its formal charter drawn up which details its rights and responsibilities. Identify the strengths and weaknesses of ABC Ltd's audit committee.

Identify and explain two of the limitations of audited financial statements.

Explain the difference between an unmodified and a modified audit report and list the different types of each.