Exam 5: Overview of the Audit Financial Reports

The work of an internal auditor can be used to complement, but not substitute for, the work of the independent auditor.Which of the following factors is not one of the considerations listed by ASA 610 that is relevant in determining the effect of an internal auditor's work on the audit?

The Australian Securities Exchange (ASX):

When auditors issue an audit report that expresses an audit opinion what duty are they fulfilling?

Which of the following is not a benefit arising from having the financial reports audited?

The group which has the legal responsibility for removal of the auditor is:

The removal and resignation of auditors must be:

Which of the following is not an inherent limitation of an audit?

It is regarded as best practice in regard to the composition of audit committees to:

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

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?

Who is responsible for the appointment of the auditor to a company?

As a general rule, the auditor is appointed by the shareholders at the annual general meeting.Which of the following is not true concerning the appointment of an auditor?

The primary reasons for the existence of Auditing Standards is:

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?

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

Identify and explain two of the benefits of having audited financial statements.

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

The words that best describes the relationship which should exist between the external auditor and the management of the client company are:

Place these phases of an audit in chronological order: A.Assess the risk of material misstatement B.Respond to assessed risks C.Perform risk assessment procedures D.Evaluate audit evidence

Identify and explain two duties of an auditor.