Question 1

-Which of the following groups might not have an interest in an entity's published financial statements? ?

Accepted Answer

A)  Senior management 
B)  Project managers 
C)  Employees 
D)  Lenders 
A)  Senior management 
B)  Project managers 
C)  Employees 
D)  Lenders B

Question 2

Corporate Governance is defined as 'the system by which companies are directed and controlled.' (UK Corporate Governance Code, 2016). This involves several components all of which have a part to play in proper governance. ?
Which of the following are not classed as part of an entity's corporate governance?

Accepted Answer

A)  The Audit Committee 
B)  The Auditors 
C)  The Regulator 
D)  The Shareholders 
E)  The Public 
A)  The Audit Committee 
B)  The Auditors 
C)  The Regulator 
D)  The Shareholders 
E)  The Public E

Question 3

Complete the definition of control risk using the following words:
 ​
1. disclosure
2. risk
3. account balance
4. assertion
5. shown
6. internal control
7. singly
8. financial statement
9. detected
10. material
11. accounting systems
12. individually
-The ________________ that a misstatement that should occur in an ________________about a class of transaction, account balance or ________________ and that could be ________________ either ________________ or when aggregated with other misstatements will not be prevented or ________________ and corrected on a timely basis by the entity's ________________.

Accepted Answer

risk , assertion , disclosure , material , individually, detected , internal control.

Question 4

The inclusion of a value for Receivables in the financial statements implies that certain assertions are true. Which of the following statements is not a valid assertion?

Accepted Answer

A)  That all the Receivables are collectable 
B)  That all Receivables exist 
C)  That all receivables are owed to the organization 
D)  That all the amounts shown can be collected within the terms of trade of the business 
E)  That the figure for Receivables is properly shown in the financial statements 
A)  That all the Receivables are collectable 
B)  That all Receivables exist 
C)  That all receivables are owed to the organization 
D)  That all the amounts shown can be collected within the terms of trade of the business 
E)  That the figure for Receivables is properly shown in the financial statements

Question 5

Which of the following is not a component of audit risk?

Accepted Answer

A)  Inherent risk 
B)  Business risk 
C)  Detection risk 
D)  Control risk 
A)  Inherent risk 
B)  Business risk 
C)  Detection risk 
D)  Control risk

Question 6

Which of the following is not a credibility concept?

Accepted Answer

A)  Due care 
B)  Ethics 
C)  Risk management 
D)  Independence 
A)  Due care 
B)  Ethics 
C)  Risk management 
D)  Independence

Question 7

During an audit the auditor suspects that the accountant who controls the cash book and the accounts receivable ledger has been committing fraud by teeming and lading. ?
How might the auditor establish whether or not this is the case when the cashier has control of all the records?

Accepted Answer

A)  It's not possible except by contacting all the customers and asking about what they paid and when. 
B)  By adding up all the invoices issued and all the cash received and seeing if the difference equals the total of balances in the Receivables ledger 
C)  By checking whether or not a receipt entered as one amount in the cash book is actually credited to two customer accounts in separate amounts 
D)  By checking the receipts in the Cash Book against the bank statements 
A)  It's not possible except by contacting all the customers and asking about what they paid and when. 
B)  By adding up all the invoices issued and all the cash received and seeing if the difference equals the total of balances in the Receivables ledger 
C)  By checking whether or not a receipt entered as one amount in the cash book is actually credited to two customer accounts in separate amounts 
D)  By checking the receipts in the Cash Book against the bank statements

Question 8

-Which of the following are components of the internal control environment?
1) The management information system
2) The internal control procedures
3) Management policies
4) Ethical policies

Accepted Answer

A)  1, 2, 3, 4 
B)  2, 3, 4 
C)  1, 3, 4 
D)  1, 2, 4 
A)  1, 2, 3, 4 
B)  2, 3, 4 
C)  1, 3, 4 
D)  1, 2, 4

-Which of the following groups might not have an interest in an entity's published financial statements? ?

The inclusion of a value for Receivables in the financial statements implies that certain assertions are true. Which of the following statements is not a valid assertion?

Which of the following is not a component of audit risk?

Which of the following is not a credibility concept?

During an audit the auditor suspects that the accountant who controls the cash book and the accounts receivable ledger has been committing fraud by teeming and lading. ? How might the auditor establish whether or not this is the case when the cashier has control of all the records?

-Which of the following are components of the internal control environment? 1) The management information system 2) The internal control procedures 3) Management policies 4) Ethical policies

Why Are Auditors Needed

Auditor Independence

Audit Regulation

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

Exam 2: An Overview of the Postulates and Concepts of Auditing

-Which of the following groups might not have an interest in an entity's published financial statements? ?

The inclusion of a value for Receivables in the financial statements implies that certain assertions are true. Which of the following statements is not a valid assertion?

Which of the following is not a component of audit risk?

Which of the following is not a credibility concept?

During an audit the auditor suspects that the accountant who controls the cash book and the accounts receivable ledger has been committing fraud by teeming and lading. ? How might the auditor establish whether or not this is the case when the cashier has control of all the records?

-Which of the following are components of the internal control environment? 1) The management information system 2) The internal control procedures 3) Management policies 4) Ethical policies

Why Are Auditors Needed

Auditor Independence

Audit Regulation

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