Question 1

Any accountant who is a member of an RSB can sign an audit report.

Accepted Answer

A) True 
 B)False  False

Question 2

The maximum number of years an audit firm can retain the audit of a public interest entity (PIE) is seven.

Accepted Answer

A) True 
 B)False  False

Question 3

Auditors do not have to have absolute assurance that the figures they audit are correct

Accepted Answer

A) True 
 B)False  True

Question 4

The auditors communicate with the shareholders by means of their Auditor's Report.

Accepted Answer

A) True 
 B)False

Question 5

Only accountants who are qualified with the Institute of Chartered Accountants in England & Wales or the Association of Chartered Certified Accountants can become Registered Auditors

Accepted Answer

A) True 
 B)False

Question 6

Before accepting appointment the prospective auditors should contact any outgoing auditors as a matter of professional courtesy and to find out if there is anything they should know.

Accepted Answer

A) True 
 B)False

Question 7

Unless the company does not have to hold an Annual General Meeting (AGM) auditors are appointed until the end of the financial year

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is not an RSB?

Accepted Answer

A)  ICAEW 
B)  CIPFA 
C)  ACCA 
D)  ICAS 
A)  ICAEW 
B)  CIPFA 
C)  ACCA 
D)  ICAS

Question 9

Auditors have several rights to enable them to carry out their duties. Which of the following is not an auditor's right?

Accepted Answer

A)  Right to all explanations and information they consider necessary 
B)  Right to access all books and records of the company 
C)  Right to access company information held by third parties 
D)  Right to attend any meeting of the company 
A)  Right to all explanations and information they consider necessary 
B)  Right to access all books and records of the company 
C)  Right to access company information held by third parties 
D)  Right to attend any meeting of the company

Question 10

? The role of a Recognised Supervisory Body in the UK includes investigating possible breaches of audit regulations

Accepted Answer

A) True 
 B)False

Question 11

Auditors may be removed by an ordinary resolution of the shareholders at a general meeting. Which of these rights do the auditors not have when a resolution for their removal is presented to the meeting?

Accepted Answer

A)  The right to receive copies of any resolution for their removal 
B)  The right to make written representations to the shareholders who have received notice of the meeting and have them circulated to the shareholders by the company 
C)  The right to table an alternative resolution at the meeting that they retain their office as auditor 
D)  The right to speak at the meeting and make representations concerning their removal 
A)  The right to receive copies of any resolution for their removal 
B)  The right to make written representations to the shareholders who have received notice of the meeting and have them circulated to the shareholders by the company 
C)  The right to table an alternative resolution at the meeting that they retain their office as auditor 
D)  The right to speak at the meeting and make representations concerning their removal

Question 12

Which of the following is not a part of the Financial Reporting Council?

Accepted Answer

A)  Codes and Standards Committee 
B)  Audit & Assurance Council 
C)  Corporate Reporting Council 
D)  Auditing Practices Board 
A)  Codes and Standards Committee 
B)  Audit & Assurance Council 
C)  Corporate Reporting Council 
D)  Auditing Practices Board

Question 13

Auditors may charge contingency fees for non audit work.

Accepted Answer

A) True 
 B)False

Question 14

The relevant RSB approves individuals to be Registered Auditors.

Accepted Answer

A) True 
 B)False

Question 15

Recognised Qualifying Bodies determine eligibility for a course of study

Accepted Answer

A) True 
 B)False

Question 16

? The work of the auditing profession in the UK is governed primarily by the Companies Act 2006

Accepted Answer

A) True 
 B)False

Question 17

The Financial Reporting Council has the power to discipline auditors who perform their work poorly

Accepted Answer

A) True 
 B)False

Question 18

The Conduct Committee can investigate a situation where there is the possibility of an allegation affecting public confidence in the auditing profession.

Accepted Answer

A) True 
 B)False

Question 19

Auditors are appointed by the directors who agree their remuneration

Accepted Answer

A) True 
 B)False

Question 20

Platypus Ltd is a family company with a turnover this year of £12 million, up from last year's figure of £9.8 million. It is wholly owned and run by two brothers who are the directors and it employs 20 people. The company's net assets total £6 m consisting mostly of machinery, land, agricultural buildings in which the equipment is stored and a small office and parts store. The directors are not sure about their status as regards an audit. Advice they have been given ranges from options a to d. Which of the statements is true?

Accepted Answer

A)  As a small family company with no outside shareholders they do not need an audit, but they could choose to have one. 
B)  It is a good idea to have an audit in any case as it adds credibility to the figures when they are being looked at by the bank and the taxman. 
C)  They must have an audit by law. 
D)  As they are both involved in managing the business and they own all of it, an audit is pointless and will not benefit anyone. 
A)  As a small family company with no outside shareholders they do not need an audit, but they could choose to have one. 
B)  It is a good idea to have an audit in any case as it adds credibility to the figures when they are being looked at by the bank and the taxman. 
C)  They must have an audit by law. 
D)  As they are both involved in managing the business and they own all of it, an audit is pointless and will not benefit anyone.

Exam 4: Audit Regulation

Any accountant who is a member of an RSB can sign an audit report.

The maximum number of years an audit firm can retain the audit of a public interest entity (PIE) is seven.

Auditors do not have to have absolute assurance that the figures they audit are correct

The auditors communicate with the shareholders by means of their Auditor's Report.

Only accountants who are qualified with the Institute of Chartered Accountants in England & Wales or the Association of Chartered Certified Accountants can become Registered Auditors

Before accepting appointment the prospective auditors should contact any outgoing auditors as a matter of professional courtesy and to find out if there is anything they should know.

Unless the company does not have to hold an Annual General Meeting (AGM) auditors are appointed until the end of the financial year

Which of the following is not an RSB?

Auditors have several rights to enable them to carry out their duties. Which of the following is not an auditor's right?

? The role of a Recognised Supervisory Body in the UK includes investigating possible breaches of audit regulations

Auditors may be removed by an ordinary resolution of the shareholders at a general meeting. Which of these rights do the auditors not have when a resolution for their removal is presented to the meeting?

Which of the following is not a part of the Financial Reporting Council?

Auditors may charge contingency fees for non audit work.

The relevant RSB approves individuals to be Registered Auditors.

Recognised Qualifying Bodies determine eligibility for a course of study

? The work of the auditing profession in the UK is governed primarily by the Companies Act 2006

The Financial Reporting Council has the power to discipline auditors who perform their work poorly

The Conduct Committee can investigate a situation where there is the possibility of an allegation affecting public confidence in the auditing profession.

Auditors are appointed by the directors who agree their remuneration

Why Are Auditors Needed

An Overview of the Postulates and Concepts of Auditing

Auditor Independence

An Introduction to Corporate Governance

Risk

Evidence

Systems Work Basic Ideas 1

Systems Work Basic Ideas 2

Testing and Evaluation of Systems

Substantive Testing, Caat and Audit Programmes

Sampling and Materiality

Final Work: General Principles and Analytical Review of Financial Statements, and Management Assertions on Financial Statement Heading

Final Work: Non-Current Assets, Trade Receivables and Financial Assets

Final Work: Specific Problems Relating to Inventories, Construction Contracts, Trade Payables and Financial Liabilities

Final Review: Post Balance Sheet Period, Provisions, Contingencies, Letter of Rep

Assurance Engagements and Internal Audit

The Audit Report, Including Reporting on Corporate Governance

Fraud and Going Concern

The Audit Expectations Gap and Audit Quality

The Auditor and Liability Under the Law

Issues in Auditing

Filters