INSTURCTION
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1. Which of the following is not a component of Internal Control?
2. If sales were overstated by recording a false credit sale at the end of the year, where could you find the false debit?
3. Which of the following circumstances would most likely cause an audit team to perform extended procedures?
4. Which of the following is a specific audit procedure that would be completed in response to a particular fraud risk in an account balance or class of transactions?
5. An audit committee is........
6. Which of the following is not a factor included in the control environment?
7. If the independent auditors decide that the work performed by the internal auditor may have bearing on their own procedures, they should consider the internal auditor's .....
8. Which of the following would be least likely to suggest to an auditor that the client's management may have overridden the internal controls?
9. Effective internal control in a small company that has insufficient employees to permit proper division of responsibilities can be best enhanced by ......
10. An auditor is considering the internal control system for purchasing and payment procedures. The auditor will be least influenced by the ....
11. Providing certain non-assurance services to an audit client may create a threat to independence so significant that no safeguards could reduce the threat to an acceptable level. All the following are examples of non-assurance services except:
12. To safeguard against a self-interest threat to objectivity, a professional accountant in public practice entrusted with money (or other assets) belonging to others should do all the following except:
13. If a member of the audit team is a member of that individual's immediate family, or a firm has a direct financial interest or a material indirect financial interest in the audit client then:
14. In order to hold the auditor successfully legally liable in a civil suit, all the following conditions have to be met except:
15. Which of the following is not one of the five elements of an assurance engagement?
16. When auditors become aware of non-compliance with a law or regulation comitted by client's personnel, the primary reason that the auditors should obtain a better understanding of the nature of the act is to....
17. Which of the following statements best describes auditors' responsibility for detecting a client's non-compliance with a law or regulation?
18. Boafo and Co, a firm of Chartered Accountants, rendered an unqualified opinion on the financial statements of a company that sold shares in a public offering. Based on a false statement in the financial statements, Boafo and Co are being sued by an investor who purchased shares of this public offering. Which of the following represents a viable defence?
19. A third-party who purchased securities of a company has brought suit against an Audit firm. The firm will prevail the suit brought by the third party even though the firm issued an unqualified opinion on materially incorrect financial statements if the ......
20. What is the responsibility of a successor auditor with respect to communicating with the predecessor auditor in connection with a prospective new client? The successor auditor .....
