Exam 1: An Overview of Auditing

Investors shift financial responsibility for audited financial information to the auditor in order to lower the expected loss from litigation or related settlements. This describes which theory of auditing?

The true statement is:

The oversight structure of financial reporting in Australia had many levels. CALDB is part of which level?

Identify three arguments for the existence of a demand for auditing and briefly explain each.

List the areas of audit reform contained in the CLERP 9.Act.

In the HIH Royal Commission Report it was stated that current audit reports:

Which of these actions is most likely to remove the audit expectation gap?

In relation to auditing the information hypothesis relates:

Which of these was not an Australian corporate collapse?

Any situation where information is prepared by one party and then attested as to its accuracy by another party is known as:

Define an assurance engagement and list its characteristics.

The three major professional accounting bodies in Australia are:

In Australia, all of the following are required to have an annual audit, except:

The statutory body that is responsible for hearing applications in Australia as to whether auditors and liquidators have breached the Corporations Act is:

ABC firm are the auditors of XYZ Company. The partner responsible for the audit has recently spent a week working with XYZ as a paid consultant on their internal control systems. The ethical principle that has been breached is:

An area where auditors in Australia have generally not expanded their role is:

The best test to decide if audits provide good value is:

Describe the components of the audit expectation gap.

The separation of ownership and control in large organisations has resulted in:

The term audit expectation gap refers primarily to differences in expectations between: