Question 1

The Pacific Acceptance case established that:

Accepted Answer

A) reasonable care and skill means following the auditing standards. 
B) auditors have a duty to closely supervise and review the work of inexperienced audit staff. 
C) auditors are only liable for the proportion of damages attributable to their actions. 
D) auditors have a duty of care only to the shareholders as a group. 
A) reasonable care and skill means following the auditing standards. 
B) auditors have a duty to closely supervise and review the work of inexperienced audit staff. 
C) auditors are only liable for the proportion of damages attributable to their actions. 
D) auditors have a duty of care only to the shareholders as a group.

Question 2

Within the context of quality control, the primary purpose of continuing professional development and training activities is to enable an audit firm to provide personnel with:

Accepted Answer

A) knowledge required to fulfil assigned responsibilities. 
B) technical training that assures proficiency as an auditor'. 
C) professional education to ensure that audit work is performed with due professional care. 
D) knowledge required to perform a peer review. 
A) knowledge required to fulfil assigned responsibilities. 
B) technical training that assures proficiency as an auditor'. 
C) professional education to ensure that audit work is performed with due professional care. 
D) knowledge required to perform a peer review.

Question 3

An auditor of a company finds that there are rare and exceptional circumstances where they are unable to comply with a relevant requirement in an auditing standard.They are, however, able to perform appropriate alternative audit procedures.To whom do they have to report or document these circumstances?

Accepted Answer

A) The auditor must report these circumstances to either management or the audit committee and obtain their agreement that the alternative procedures are appropriate. 
B) If the auditor can use appropriate alternative audit procedures, no reporting or documentation is required. 
C) The auditor is required to document the circumstances in the auditor's report. 
D) The auditor is required to document the circumstances in the audit working papers. 
A) The auditor must report these circumstances to either management or the audit committee and obtain their agreement that the alternative procedures are appropriate. 
B) If the auditor can use appropriate alternative audit procedures, no reporting or documentation is required. 
C) The auditor is required to document the circumstances in the auditor's report. 
D) The auditor is required to document the circumstances in the audit working papers.

Question 4

A firm of independent auditors must establish and follow explicit quality control policies and procedures because these standards:

Accepted Answer

A) are necessary to meet increasing requirements of auditors' liability insurers. 
B) give reasonable assurance that the firm as a whole will conform to the auditing standards. 
C) include formal filing of records of such policies and procedures. 
D) are required by the Australian Securities and Investments Commission for auditors of all entities. 
A) are necessary to meet increasing requirements of auditors' liability insurers. 
B) give reasonable assurance that the firm as a whole will conform to the auditing standards. 
C) include formal filing of records of such policies and procedures. 
D) are required by the Australian Securities and Investments Commission for auditors of all entities.

Question 5

Which of the following is not a standard-setting board or committee of the International Federation of Accountants (IFAC)?

Accepted Answer

A) International Auditing and Assurance Standards Board (IAAS
B) . 
B) International Ethics Standards Board for Accountants (IESB
A) . 
C) International Public Sector Accounting Standards Board (IPSAS
B) . 
D) International Accounting Standards Board (IAS
B) . 
A) International Auditing and Assurance Standards Board (IAAS
B) . 
B) International Ethics Standards Board for Accountants (IESB
A) . 
C) International Public Sector Accounting Standards Board (IPSAS
B) . 
D) International Accounting Standards Board (IAS
B) .

The Pacific Acceptance case established that:

Within the context of quality control, the primary purpose of continuing professional development and training activities is to enable an audit firm to provide personnel with:

A firm of independent auditors must establish and follow explicit quality control policies and procedures because these standards:

Which of the following is not a standard-setting board or committee of the International Federation of Accountants (IFAC)?

Assurance and Auditing: An Overview

Ethics, Independence and Corporate Governance

Overview of Elements of the Financial Report Audit Process

Planning, Understanding the Entity and Assessing Business Risk

Assessing Inherent Risk, and Other Specific Business Risks

Understanding and Assessing Internal Control

Tests of Controls

Substantive Tests of Transactions and Balances

Completion and Review

The Auditors Reporting Obligations

Other Assurance Services and Advanced Topics

Internal Auditing

Audit and Assurance Services in the Public Sector

Filters

Exam 2: Audit Regulation, Structure of the Profession and Auditors Liability

The Pacific Acceptance case established that:

Within the context of quality control, the primary purpose of continuing professional development and training activities is to enable an audit firm to provide personnel with:

A firm of independent auditors must establish and follow explicit quality control policies and procedures because these standards:

Which of the following is not a standard-setting board or committee of the International Federation of Accountants (IFAC)?

Assurance and Auditing: An Overview

Ethics, Independence and Corporate Governance

Overview of Elements of the Financial Report Audit Process

Planning, Understanding the Entity and Assessing Business Risk

Assessing Inherent Risk, and Other Specific Business Risks

Understanding and Assessing Internal Control

Tests of Controls

Substantive Tests of Transactions and Balances

Completion and Review

The Auditors Reporting Obligations

Other Assurance Services and Advanced Topics

Internal Auditing

Audit and Assurance Services in the Public Sector

Filters