Question 1

Recent history shows that many auditors lack skills in making:

Accepted Answer

A)  estimates 
B)  professional judgements 
C)  determining materiality 
D)  audits profitable 
A)  estimates 
B)  professional judgements 
C)  determining materiality 
D)  audits profitable

Question 2

Auditors need to consider the risk and take appropriate action relating to material misstatements of fact contained in the client's annual report, including in the Directors' Report.

Accepted Answer

A) True 
 B)False

Question 3

The auditor is not required to make a judgement as to what the fair value of a security might be at year end and about contingencies - including their probability and potential dollar amount.

Accepted Answer

A) True 
 B)False

Question 4

The IASB has set a hierarchy of inputs to consider in assessing fair value. Prices taken from a recent trade on the NIKKEI of an index stock would fall under which level?

Accepted Answer

A)  Level 0 valuations 
B)  Level 1 valuations 
C)  Level 2 valuations 
D)  Level 3 valuations 
A)  Level 0 valuations 
B)  Level 1 valuations 
C)  Level 2 valuations 
D)  Level 3 valuations

Question 5

ASA 610 encourages the external auditor to utilise the work of internal auditors and other objective parties within the organisation when performing the assessment of internal control over financial reporting.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following standards provides the auditor with basic guidance on materiality judgements?

Accepted Answer

A)  AASB 1031 
B)  AASB 138 
C)  AASB 139 
D)  AASB 116 
A)  AASB 1031 
B)  AASB 138 
C)  AASB 139 
D)  AASB 116

Question 7

An important consideration for auditors in judging the potential materiality of contingencies is the needs of investors and other users of the financial report and audit report.

Accepted Answer

A) True 
 B)False

Question 8

The accumulation of all potential misstatements in a place where the audit team can assess the materiality of misstatements is often based on performance materiality.

Accepted Answer

A) True 
 B)False

Recent history shows that many auditors lack skills in making:

Auditors need to consider the risk and take appropriate action relating to material misstatements of fact contained in the client's annual report, including in the Directors' Report.

The auditor is not required to make a judgement as to what the fair value of a security might be at year end and about contingencies - including their probability and potential dollar amount.

The IASB has set a hierarchy of inputs to consider in assessing fair value. Prices taken from a recent trade on the NIKKEI of an index stock would fall under which level?

ASA 610 encourages the external auditor to utilise the work of internal auditors and other objective parties within the organisation when performing the assessment of internal control over financial reporting.

Which of the following standards provides the auditor with basic guidance on materiality judgements?

An important consideration for auditors in judging the potential materiality of contingencies is the needs of investors and other users of the financial report and audit report.

The accumulation of all potential misstatements in a place where the audit team can assess the materiality of misstatements is often based on performance materiality.

Assurance and Auditing: Integral to the Economy

Corporate Governance and Audits

Judgemental and Ethical Decision-Making Frameworks and Associated Professional Standards

Professional Liabilit

Audit Risk, Business Risk, and Audit Planning

Internal Control Over Financial Reporting

Audit Evidence: A Framework

Tests of Control and Substantive Test Implications

Tools to Gather Audit Evidence

Auditing for Fraud

Auditing Revenue, Related Accounts, Audit of Acquisition and Payment Cycle and Inventory

Audit of Cash and Other Liquid Assets

Audit of Long-Lived Assets and Related Expense Accounts

Audit of Long-Term Liabilities, Equity, Acquisitions and Related-Entity Transactions

Completing the Audit or Review

Audit, Review and Other Reports

Filters

Exam 17: Advanced Topics Concerning Complex Auditing Judgements

Recent history shows that many auditors lack skills in making:

Auditors need to consider the risk and take appropriate action relating to material misstatements of fact contained in the client's annual report, including in the Directors' Report.

The auditor is not required to make a judgement as to what the fair value of a security might be at year end and about contingencies - including their probability and potential dollar amount.

The IASB has set a hierarchy of inputs to consider in assessing fair value. Prices taken from a recent trade on the NIKKEI of an index stock would fall under which level?

ASA 610 encourages the external auditor to utilise the work of internal auditors and other objective parties within the organisation when performing the assessment of internal control over financial reporting.

Which of the following standards provides the auditor with basic guidance on materiality judgements?

An important consideration for auditors in judging the potential materiality of contingencies is the needs of investors and other users of the financial report and audit report.

The accumulation of all potential misstatements in a place where the audit team can assess the materiality of misstatements is often based on performance materiality.

Assurance and Auditing: Integral to the Economy

Corporate Governance and Audits

Judgemental and Ethical Decision-Making Frameworks and Associated Professional Standards

Professional Liabilit

Audit Risk, Business Risk, and Audit Planning

Internal Control Over Financial Reporting

Audit Evidence: A Framework

Tests of Control and Substantive Test Implications

Tools to Gather Audit Evidence

Auditing for Fraud

Auditing Revenue, Related Accounts, Audit of Acquisition and Payment Cycle and Inventory

Audit of Cash and Other Liquid Assets

Audit of Long-Lived Assets and Related Expense Accounts

Audit of Long-Term Liabilities, Equity, Acquisitions and Related-Entity Transactions

Completing the Audit or Review

Audit, Review and Other Reports

Filters