Question 1

Which of the following auditing procedures is ordinarily performed last?

Accepted Answer

A)  Reading the mins of the directors' meetings. 
B)  Confirming accounts payable. 
C)  Obtaining a management representation letter. 
D)  Testing the purchasing function. 
A)  Reading the mins of the directors' meetings. 
B)  Confirming accounts payable. 
C)  Obtaining a management representation letter. 
D)  Testing the purchasing function.

Question 2

Analytical procedures used in the overall review stage of an audit generally include:

Accepted Answer

A)  testing transactions to corroborate management's financial report assertions. 
B)  considering unusual or unexpected amount balances that were not previously identified. 
C)  retesting control procedures that appeared to be ineffective during the assessment of control risk. 
D)  gathering evidence concerning account balances that have not changed from the prior year. 
A)  testing transactions to corroborate management's financial report assertions. 
B)  considering unusual or unexpected amount balances that were not previously identified. 
C)  retesting control procedures that appeared to be ineffective during the assessment of control risk. 
D)  gathering evidence concerning account balances that have not changed from the prior year.

Question 3

An auditor will ordinarily examine invoices from solicitors primarily in order to:

Accepted Answer

A)  substantiate accruals. 
B)  assess the legal ramifications of litigation in progress. 
C)  estimate the dollar amount of contingent liabilities. 
D)  identify possible unasserted litigation, claims and assessments. 
A)  substantiate accruals. 
B)  assess the legal ramifications of litigation in progress. 
C)  estimate the dollar amount of contingent liabilities. 
D)  identify possible unasserted litigation, claims and assessments.

Question 4

When an audit is made in accordance with the auditing standards, the independent auditor must:

Accepted Answer

A)  utilise statistical sampling. 
B)  confirm receivables at year-end. 
C)  obtain certain written representations from management. 
D)  observe the taking of physical inventory on the balance date. 
A)  utilise statistical sampling. 
B)  confirm receivables at year-end. 
C)  obtain certain written representations from management. 
D)  observe the taking of physical inventory on the balance date.

Question 5

Lisa Tan has audited the financial report of Basalt Ltd for the year ended 30 June 2012. Although Lisa's audit fieldwork was completed on 25 August 2012, her auditor's report was signed on 28 August 2012 and sent to management that
Day) The management of Basalt Ltd advised Lisa that their annual report, which will be mailed to shareholders on
8 October 2012, will also include an unaudited financial report for the first quarter ended 30 September 2012. Under
The circumstances, Lisa is responsible for undertaking subsequent events audit procedures through to:

Accepted Answer

A)  25 August 2012. 
B)  28 August 2012. 
C)  30 September 2012. 
D)  8 October 2012. 
A)  25 August 2012. 
B)  28 August 2012. 
C)  30 September 2012. 
D)  8 October 2012.

Question 6

The property portfolio of Utopia Pty Ltd is stated at a value of $1 million in excess of its current market value. Utopia Pty Ltd is a non-reporting entity and does not apply the provisions of AASB 1010 in the preparation of its financial
Report. The directors believe that it would be inappropriate to write the properties down to market value as it is their
Intention to hold the properties as a long-term investment and the properties will eventually recover their value. The
Independent valuer agrees that the property will eventually recover its full value. Sufficient appropriate audit evidence
To support the value of the property would include obtaining a letter of representation from management confirming:

Accepted Answer

A)  the directors' intention to hold the property on a long-term basis, that the value of the buildings is likely to increase in the long term and that the company is indeed a non-reporting entity. 
B)  the directors' intention to hold the property on a long-term basis and that the company is indeed a non-reporting entity. 
C)  the intention to hold the property on a long-term basis. 
D)  the company is indeed a non-reporting entity. 
A)  the directors' intention to hold the property on a long-term basis, that the value of the buildings is likely to increase in the long term and that the company is indeed a non-reporting entity. 
B)  the directors' intention to hold the property on a long-term basis and that the company is indeed a non-reporting entity. 
C)  the intention to hold the property on a long-term basis. 
D)  the company is indeed a non-reporting entity.

Question 7

An auditor has received a solicitor's letter in which no significant disagreements with the client's assessments of contingent liabilities were noted. The resignation of the client's solicitor shortly after receipt of the letter should
Alert the auditor that:

Accepted Answer

A)  undisclosed unasserted claims may have arisen. 
B)  the solicitor was unable to form a conclusion with respect to the significance of litigation, claims and assessments. 
C)  the auditor must begin a new examination of contingent liabilities. 
D)  an adverse opinion will be necessary. 
A)  undisclosed unasserted claims may have arisen. 
B)  the solicitor was unable to form a conclusion with respect to the significance of litigation, claims and assessments. 
C)  the auditor must begin a new examination of contingent liabilities. 
D)  an adverse opinion will be necessary.

Question 8

If a solicitor refuses to furnish corroborating information regarding litigation, claims and assessments, the auditor should:

Accepted Answer

A)  honour the confidentiality of the client-solicitor relationship. 
B)  consider the refusal to be a scope limitation. 
C)  seek to obtain the corroborating information from management. 
D)  disclose this fact in a footnote to the financial report. 
A)  honour the confidentiality of the client-solicitor relationship. 
B)  consider the refusal to be a scope limitation. 
C)  seek to obtain the corroborating information from management. 
D)  disclose this fact in a footnote to the financial report.

Question 9

Which of the following procedures would an auditor most likely perform to obtain evidence about the occurrence of subsequent events?

Accepted Answer

A)  Investigate changes in shareholders' equity occurring after year-end. 
B)  Recalculate a sample of large-dollar transactions occurring after year-end for arithmetic accuracy. 
C)  Confirm bank accounts established after year-end. 
D)  Inquire of the entity's solicitor concerning litigation, claims and assessments arising after year-end. 
A)  Investigate changes in shareholders' equity occurring after year-end. 
B)  Recalculate a sample of large-dollar transactions occurring after year-end for arithmetic accuracy. 
C)  Confirm bank accounts established after year-end. 
D)  Inquire of the entity's solicitor concerning litigation, claims and assessments arising after year-end.

Which of the following auditing procedures is ordinarily performed last?

Analytical procedures used in the overall review stage of an audit generally include:

An auditor will ordinarily examine invoices from solicitors primarily in order to:

When an audit is made in accordance with the auditing standards, the independent auditor must:

An auditor has received a solicitor's letter in which no significant disagreements with the client's assessments of contingent liabilities were noted. The resignation of the client's solicitor shortly after receipt of the letter should Alert the auditor that:

If a solicitor refuses to furnish corroborating information regarding litigation, claims and assessments, the auditor should:

Which of the following procedures would an auditor most likely perform to obtain evidence about the occurrence of subsequent events?

Assurance and Auditing: An Overview

The Structure of the Profession

Ethics, Independence and Corporate Governance

The Legal Liability of Auditors Part Two: Planning and Risk

Overview of Elements of the Financial Report Audit Process

Planning, Understanding the Entity and Evaluating Business Risk

Assessing Specific Business Risk

Understanding and Assessing Internal Control Part Three: Tests of Control and Tests of Details

Tests of Controls

Substantive Tests of Transactions and Balances

Audit Sampling Part Four: Completion and Communication

The Auditors Reporting Obligations Part Five: Other Assurance Services

Internal Auditing

Auditing and Assurance Services in the Public Sector

Other Assurance Services and Advanced Topics

Filters

Exam 12: Completion and Review

Which of the following auditing procedures is ordinarily performed last?

Analytical procedures used in the overall review stage of an audit generally include:

An auditor will ordinarily examine invoices from solicitors primarily in order to:

When an audit is made in accordance with the auditing standards, the independent auditor must:

An auditor has received a solicitor's letter in which no significant disagreements with the client's assessments of contingent liabilities were noted. The resignation of the client's solicitor shortly after receipt of the letter should Alert the auditor that:

If a solicitor refuses to furnish corroborating information regarding litigation, claims and assessments, the auditor should:

Which of the following procedures would an auditor most likely perform to obtain evidence about the occurrence of subsequent events?

Assurance and Auditing: An Overview

The Structure of the Profession

Ethics, Independence and Corporate Governance

The Legal Liability of Auditors Part Two: Planning and Risk

Overview of Elements of the Financial Report Audit Process

Planning, Understanding the Entity and Evaluating Business Risk

Assessing Specific Business Risk

Understanding and Assessing Internal Control Part Three: Tests of Control and Tests of Details

Tests of Controls

Substantive Tests of Transactions and Balances

Audit Sampling Part Four: Completion and Communication

The Auditors Reporting Obligations Part Five: Other Assurance Services

Internal Auditing

Auditing and Assurance Services in the Public Sector

Other Assurance Services and Advanced Topics

Filters