1. Which of the following is not included in the fundamental principles of the IESBA's Code of Ethics? Members should:
2. Which of the following statements most fairly reflects the auditor's duty of confidentiality? Auditors
3. Application controls relate to procedures used to initiate, record, process and report transactions and other financial data. Which two of the following are application controls?
I. Records of program changes
IL. Virus checks
III. Batch reconciliations
IV. Document counts
4. General IT controls are policies and procedures that relate to many applications and support the effective functioning of application controls. Which two of the following are general IT controls?
I. Testing procedures using test data
II. One for one checking
Ill. Disaster recovery procedures
IV. Hash totals
5. Which of the following controls help to ensure that payroll payments are only made to bona fide employees?
I. Personnel records maintained for all employees.
II. Comparison of bank transfer listing with payroll.
III.Segregation of duties between staff involved in human
resources and payroll functions.
IV. Re-performance of the calculation of a sample of payroll
deductions.
6. Which of the following procedures will be performed by the auditor as part of a subsequent events review?
I. Request for written representations from management.
II. Review of minutes of board meetings held after the date of
the financial statements.
7. The auditor of S Ple has concluded that the use of the going concern assumption is appropriate and that the material uncertainty has been adequately disclosed. What is the impact of this conclusion on the audit report?
8. The auditor of Y Pl has concluded that Y Ple is not a going concern. The financial statements have been prepared on a going concern basis and management has refused to change them. What form of audit opinion will be issued by the auditor?
9. ISA 700 Forming an opinion and reporting on financial statements sets out the basic elements of an auditor's report. Which of the following is not included in an unmodified auditor's report?
10. The auditor of O Pc has completed the audit and has concluded that sufficient appropriate evidence has been obtained, which confirms that the financial statements are not materially misstated. Which form of audit opinion will the auditor issue?
11. AB & Co audits DEF Plc. Which two of the following circumstances would constitute a threat to objectivity?
I. An employee of AB & Co owns shares in DEF Plc but is not part of the audit team.
II. The best friend of the engagement partner owns significant indirect financial interest in DEF PIc.
III. The audit manager of DEF Plc owns a small number of shares in DEF Ple.
IV. The husband of the audit partner owns shares in DEF PIc.
12. A private company has requested that its auditor prepares a valuation report on a prospective acquisition target in order to help it obtain finance from the bank for the acquisition. Which of the following threats may arise if the auditor agrees to take on this assignment?
13. Which of the following correctly describes the auditors' responsibilities in accordance with ISA 240 'The auditor's responsibilities relating to fraud in an audit of financial statements'?
14. In accordance with ISA 250 'Consideration of laws and regulations in an audit of financial statements "what is the responsibility of the external auditor?
15. ISA 705 'Modification to the opinion in the independent auditor's report' identifies three possible types of modification. In which of the following circumstances would a disclaimer of opinion be issued? The auditor
16. Having discovered a fraud by an employee, the auditor has a primary duty to report to which of the following?
17. For which of the following does ISA 220 Quality control for an audit of financial statements require the appointment of an engagement quality control reviewer?
18. What is the primary objective of ISQC 1 Quality control for firms that perform audits and reviews of financial statements, and other assurance and related services engagements on quality control?
19. Which of the following is most likely to be ethically unacceptable for audit practice?
20. Which one of the following is not an element of an audit firm's quality control at the firm level?
