Question 1

An operational audit is an example of a compliance audit.

Accepted Answer

A) True 
 B)False

Question 2

It is the auditor's responsibility to prepare the financial statements.

Accepted Answer

A) True 
 B)False

Question 3

All modified audit reports are qualified audit opinions.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is in? The Australian Securities and Investments Commission (ASIC)

Accepted Answer

A) requires all auditors' financial statements to be independently audited annually. 
B) registers auditors and processes annual statements from registered auditors. 
C) enforces independence requirements for auditors. 
D) provides a whistleblowing facility for the reporting of contraventions of the Corporations Act. 
A) requires all auditors' financial statements to be independently audited annually. 
B) registers auditors and processes annual statements from registered auditors. 
C) enforces independence requirements for auditors. 
D) provides a whistleblowing facility for the reporting of contraventions of the Corporations Act.

Question 5

When auditors are engaged in work where no assurance is provided this means;

Accepted Answer

A) An assurance is not provided as the client determines the nature,timing and extent of the evidence that is gathered and will determine their own outcome. 
B) The auditors found anomalies in the financial information and no assurance will be given until further testing is conducted. 
C) That the review indicates adverse finding and the auditors are not prepared to give an assurance that the information gives a true and fair view. 
D) No assurance is provided as the client will determine the outcome once the auditors have gathered the data. 
A) An assurance is not provided as the client determines the nature,timing and extent of the evidence that is gathered and will determine their own outcome. 
B) The auditors found anomalies in the financial information and no assurance will be given until further testing is conducted. 
C) That the review indicates adverse finding and the auditors are not prepared to give an assurance that the information gives a true and fair view. 
D) No assurance is provided as the client will determine the outcome once the auditors have gathered the data.

Question 6

In addition to the preparation of financial statements,it is also the responsibility of those charged with governance to:

Accepted Answer

A) selecting and applying appropriate accounting policies and making reasonable accounting estimates. 
B) establish and maintain internal controls that are effective in preventing and detecting material misstatements. 
C) identify the financial reporting framework to be used in the preparation and presentation of their financial report. 
D) all of the above. 
A) selecting and applying appropriate accounting policies and making reasonable accounting estimates. 
B) establish and maintain internal controls that are effective in preventing and detecting material misstatements. 
C) identify the financial reporting framework to be used in the preparation and presentation of their financial report. 
D) all of the above.

Question 7

Outline the reasons for the demand for assurance services.

Accepted Answer

Remoteness - As most users do not have a

Question 8

A limitation of an audit is caused by

Accepted Answer

A) the need for the audit to be conducted within a reasonable period of time and at a reasonable cost. 
B) the nature of audit procedures. 
C) the nature of financial reporting. 
D) all of the above. 
A) the need for the audit to be conducted within a reasonable period of time and at a reasonable cost. 
B) the nature of audit procedures. 
C) the nature of financial reporting. 
D) all of the above.

Question 9

An example of the three parties in an assurance engagement would be:

Accepted Answer

A) audit client,supplier,auditor. 
B) audit client,employee,customer. 
C) auditor,general public,employees. 
D) auditor,shareholder,general public. 
A) audit client,supplier,auditor. 
B) audit client,employee,customer. 
C) auditor,general public,employees. 
D) auditor,shareholder,general public.

An operational audit is an example of a compliance audit.

It is the auditor's responsibility to prepare the financial statements.

All modified audit reports are qualified audit opinions.

Which of the following is in? The Australian Securities and Investments Commission (ASIC)

When auditors are engaged in work where no assurance is provided this means;

In addition to the preparation of financial statements,it is also the responsibility of those charged with governance to:

Outline the reasons for the demand for assurance services.

A limitation of an audit is caused by

An example of the three parties in an assurance engagement would be:

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

Completing and Reporting on the Audit

Filters

Exam 1: Introduction and Overview of Audit and Assurance

An operational audit is an example of a compliance audit.

It is the auditor's responsibility to prepare the financial statements.

All modified audit reports are qualified audit opinions.

Which of the following is in? The Australian Securities and Investments Commission (ASIC)

When auditors are engaged in work where no assurance is provided this means;

In addition to the preparation of financial statements,it is also the responsibility of those charged with governance to:

Outline the reasons for the demand for assurance services.

A limitation of an audit is caused by

An example of the three parties in an assurance engagement would be:

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

Completing and Reporting on the Audit

Filters