Question 1

Matters of governance interest that the auditor may wish to discuss with those charged with governance include:

Accepted Answer

A)  any practical difficulties encountered in performing the audit. 
B)  the potential effect on the financial statements of any material risks and exposures. 
C)  expected modifications to the audit report. 
D)  all of the above. 
A)  any practical difficulties encountered in performing the audit. 
B)  the potential effect on the financial statements of any material risks and exposures. 
C)  expected modifications to the audit report. 
D)  all of the above.

Question 2

Ron Nucci is trying to gather sufficient appropriate evidence. Which of these are factors to consider in evaluating the sufficiency and appropriateness of audit evidence?

Accepted Answer

A)  audit risk 
B)  control risk 
C)  quality of information obtained 
D)  none of the above 
A)  audit risk 
B)  control risk 
C)  quality of information obtained 
D)  none of the above

Question 3

When Samantha Dieter was training her staff about the auditor's responsibility for subsequent events she made the two following statements: (i) Type 2 subsequent events are those events that do not result in changes to financial statements.
(ii) Type 1 subsequent events do not require adjustments to financial statements.
Which of the above statements, if any is true?

Accepted Answer

A)  (i) 
B)  (ii) 
C)  (i) and (ii) 
D)  neither (i) nor (ii) 
A)  (i) 
B)  (ii) 
C)  (i) and (ii) 
D)  neither (i) nor (ii)

Question 4

The auditor's report will not require a modified opinion where:

Accepted Answer

A)  there is a disagreement with those charged with governance. 
B)  a limitation of scope of the engagement exists. 
C)  a significant uncertainty exists. 
D)  the financial statements are presented fairly. 
A)  there is a disagreement with those charged with governance. 
B)  a limitation of scope of the engagement exists. 
C)  a significant uncertainty exists. 
D)  the financial statements are presented fairly.

Question 5

An unqualified audit opinion with an emphasis of matter should be given where there is:

Accepted Answer

A)  inconsistent other information. 
B)  additional disclosures with which the auditor concurs. 
C)  a subsequent event that results in a new auditor's report on revised financial statements. 
D)  all of the above. 
A)  inconsistent other information. 
B)  additional disclosures with which the auditor concurs. 
C)  a subsequent event that results in a new auditor's report on revised financial statements. 
D)  all of the above.

Question 6

Which of the following are included in the main components of the auditor's report?

Accepted Answer

A)  management's responsibility for the financial statements 
B)  the auditor's opinion on whether the financial statements are fairly presented 
C)  the date of the audit report 
D)  all of the above 
A)  management's responsibility for the financial statements 
B)  the auditor's opinion on whether the financial statements are fairly presented 
C)  the date of the audit report 
D)  all of the above

Question 7

When misstatements or deviations from controls are found in planned procedures, consideration should always be given to:

Accepted Answer

A)  the need to modify or perform further audit procedures. 
B)  the reason for the misstatement or deviation. 
C)  both a and b 
D)  none of the above. 
A)  the need to modify or perform further audit procedures. 
B)  the reason for the misstatement or deviation. 
C)  both a and b 
D)  none of the above.

Question 8

Syed Hussein, the partner on the Rimouski Copper audit called a meeting of his senior staff during the engagement wrap-up. Which of the following areas would be the least likely to be covered during the wrap up?

Accepted Answer

A)  consideration of the amount used for materiality 
B)  removal of all unnecessary documentation from the engagement files 
C)  performing analytical procedures on the adjusted financial statements 
D)  preparation of budgets for the following year's audit 
A)  consideration of the amount used for materiality 
B)  removal of all unnecessary documentation from the engagement files 
C)  performing analytical procedures on the adjusted financial statements 
D)  preparation of budgets for the following year's audit

Question 9

Which of the following would not be included in an audit report?

Accepted Answer

A)  The auditor's address 
B)  An introductory paragraph 
C)  The audit fee charged to the client 
D)  Management's responsibility for the financial statements 
A)  The auditor's address 
B)  An introductory paragraph 
C)  The audit fee charged to the client 
D)  Management's responsibility for the financial statements

Question 10

Management's responsibilities for the financial statements do not include which of the following?

Accepted Answer

A)  selecting and applying appropriate accounting policies 
B)  expressing an opinion on the financial statements 
C)  establishing and maintaining internal controls 
D)  making reasonable accounting estimates 
A)  selecting and applying appropriate accounting policies 
B)  expressing an opinion on the financial statements 
C)  establishing and maintaining internal controls 
D)  making reasonable accounting estimates

Question 11

Discuss the factors that are relevant when management is assessing the going concern assumption.

Accepted Answer

The following factors are relevant when

Question 12

Indicate whether you agree or disagree with the following statements and explain your reasoning.
a) Steven Bischoff, the senior auditor at Martineau, Hellman and Nathan made the following statement to his audit team: "What constitutes sufficient appropriate audit evidence is a matter of judgment."
b) Metropolitan Poultry Company operates as a specialty food distributor. Gordon Atkins, auditor, has told his staff that the bankruptcy of a customer at year-end should not be considered a type 1 event.
c) Mississauga Ice Pucks auditor Dave Ganesh found an omission of a disclosure in the financial statements of the hockey team. He called this an error.
d) Stacey Kurvers was told by the client that a limitation in the scope of his work would require a modification to the audit report.

Accepted Answer

a) Agree. What constitutes sufficient ap

Question 13

The auditor's responsibility for the financial statements includes selecting and applying appropriate accounting policies.

Accepted Answer

A) True 
 B)False

Matters of governance interest that the auditor may wish to discuss with those charged with governance include:

Ron Nucci is trying to gather sufficient appropriate evidence. Which of these are factors to consider in evaluating the sufficiency and appropriateness of audit evidence?

The auditor's report will not require a modified opinion where:

An unqualified audit opinion with an emphasis of matter should be given where there is:

Which of the following are included in the main components of the auditor's report?

When misstatements or deviations from controls are found in planned procedures, consideration should always be given to:

Syed Hussein, the partner on the Rimouski Copper audit called a meeting of his senior staff during the engagement wrap-up. Which of the following areas would be the least likely to be covered during the wrap up?

Which of the following would not be included in an audit report?

Management's responsibilities for the financial statements do not include which of the following?

Discuss the factors that are relevant when management is assessing the going concern assumption.

The auditor's responsibility for the financial statements includes selecting and applying appropriate accounting policies.

Introduction and Overview of Audit and Assurance

Ethics, Legal Liability and Client Acceptance

Risk Assessment I

Risk Assessment II

Audit Evidence

Gaining an Understanding of the Clients System of Internal Controls

Sampling and Overview of the Risk Response Phase of the Audit

Execution of the Audit Testing of Controls

Execution of the Audit Performing Substantive Procedures

Substantive Testing and Balance Sheet Accounts

Substantive Testing and Income Statement Accounts

Filters

Exam 12: Completing and Reporting on the Audit

Matters of governance interest that the auditor may wish to discuss with those charged with governance include:

Ron Nucci is trying to gather sufficient appropriate evidence. Which of these are factors to consider in evaluating the sufficiency and appropriateness of audit evidence?

The auditor's report will not require a modified opinion where:

An unqualified audit opinion with an emphasis of matter should be given where there is:

Which of the following are included in the main components of the auditor's report?

When misstatements or deviations from controls are found in planned procedures, consideration should always be given to:

Syed Hussein, the partner on the Rimouski Copper audit called a meeting of his senior staff during the engagement wrap-up. Which of the following areas would be the least likely to be covered during the wrap up?

Which of the following would not be included in an audit report?

Management's responsibilities for the financial statements do not include which of the following?

Discuss the factors that are relevant when management is assessing the going concern assumption.

The auditor's responsibility for the financial statements includes selecting and applying appropriate accounting policies.

Introduction and Overview of Audit and Assurance

Ethics, Legal Liability and Client Acceptance

Risk Assessment I

Risk Assessment II

Audit Evidence

Gaining an Understanding of the Clients System of Internal Controls

Sampling and Overview of the Risk Response Phase of the Audit

Execution of the Audit Testing of Controls

Execution of the Audit Performing Substantive Procedures

Substantive Testing and Balance Sheet Accounts

Substantive Testing and Income Statement Accounts

Filters