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Question(s) / Instruction(s):

ACC3118

1) The auditor plans the engagement to obtain sufficient appropriate evidence. This is essential to:

A) Help the firm remain competitive.

B) Minimize legal liability and maintain for the firm a good reputation in the business community.

C) Facilitate good client relations.

D) All of the above

 

2) The current audit files include all audit documentation applicable to the year under audit, including:

A) Supporting schedules.

B) Working trial balance.

C) The audit program.

D) All of the above.

 

3) A working trial balance is:

A) A listing of the general ledger accounts and their year-end balances.

B) A list of the opening subsidiary ledger account balances.

C) The set of lead schedules.

D) A summary of the effect of the auditor’s reclassification entries.

 

4) the most likely uses of the financial statements can be determined from:

A) Reviewing the minutes of meetings.

B) Inquiries with ASIC and the ASX.

C) Previous experience with the auditee and discussions with management.

D) Reviewing the terms of the engagement as set out in the engagement letter.

 

5) Which one of the following items would not normally be included, in whole or in part, in the Auditor’s permanent file on a client?

A) The company’s constitution

B) Analyses of accounts such as long-term debt and shareholdersʹ equity

C) Organization charts and internal control questionnaires

D) The audit program

 

6) The auditor should understand the client’s business factors such information about related parties

-why?

A) It may indicate reasons not to accept the engagement.

B) It may indicate areas of increased control risk.

C) It may indicate areas of increased audit risk.

D) It may indicate areas of increased client business risk.

 

7) Which of the following would not usually be included in the minutes of the board of directors And/or shareholders?

A) Authorization of long-term loans

B) Authorization of individuals to sign cheques

C) Declaration of dividends

D) The duties and powers of the corporate officers

 

 

8) Which one of the following is not one of the major types of supporting schedule working papers?

A) An audit program

B) A test of reasonableness schedule

C) Outside documentation

 D) A reconciliation

 

9) Which one of the following would ordinarily not be found in the permanent file?

A) Past years analytical working papers

B) Related party details

C) The name of the predecessor auditor

D) Systems documentation

 

10) Policy and procedures governing the acceptance and continuance of client relationships are

Contained primarily in:

A) ASA 220.

B) ASA 210.

C) ASA315.

D) ASA 620.

 

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