STATEMENT 1: Since the partner has the ultimate responsibility in an audit engagement, his/her signature should be affixed on the audit working papers. STATEMENT 2: Indexing and cross-indexing will facilitate the control, assembly, and review of working papers. A. Only Statement 1 is incorrect B. Only Statement 1 is correct C. Both statements are incorrect D. Both statements are correct

STATEMENT 1: Since the partner has the ultimate responsibility in an audit engagement, his/her signature should be affixed on the audit working papers. STATEMENT 2: Indexing and cross-indexing will facilitate the control, assembly, and review of working papers. A. Only Statement 1 is incorrect B. Only Statement 1 is correct C. Both statements are incorrect D. Both statements are correct

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following are procedures to obtain audit evidence except: a. Physical examination. b. Organization. c. Confirmation. d. Analytical procedures.
If the Financial Statements are prepared do not achieve fair presentation, then an auditor shall O a. Discuss the matter with third parties b. Determine whether it is necessary again to plan audit O c. Determine whether it is necessary again to engage team members O d. Discuss the matter with management
Explain the difference between the overall audit strategy and the audit plan and state the key contents of the overall strategy document. ISA 230 Audit Documentation requires auditors to document their work. Briefly explain the reasons for auditors documenting their work. ISA 580 Written representations explains the purpose and use of written representations as audit evidence. State six items that could be included in a written representation letter. ISA500 Audit Evidence requires auditors to obtain sufficient appropriate audit evidence to be able to draw reasonable conclusions on which to base their audit opinion. Discuss the different sources of evidence available to auditors and assess their relative appropriateness. What factors should the auditor take into consideration before concluding that a financial statement DO NOT show a True and Fair View?
The audit report dates are:a. Closing date of client's bookb. The date on which the letter of representation was receivedc. The date when the audit report is submitted to the clientd. The date on which all the necessary audit procedures were performed
The agreed terms of the audit engagement shall be recorded in, an audit engagement letter an audit engagement letter or other suitable form of written agreement any suitable form of written agreement None of the above
Salim is an auditor planning with engagement team members how to obtain an audit evidence. In this regard, which of the following situations is required the application of ISA 500? O a. The audit evidence obtained in relation to a particular topic O b. All the audit evidence obtained during the course of an audit O c. Specific procedures to obtain an audit evidence O d. At the time of planning an audit
22-What may be the possible purpose of using oral explanation in the audit documentation? O a. To assist conclusion reached by the auditor O b. To clarify information contained in audit documentation O c. All of the options O d. To support the work performed by the auditor
Which of the following is not true concerning materiality? a. Materiality is a matter of professional judgement O b. Materiality is used as a guide to planning substantive procedures O c. Materiality is used a guide for making decisions about the audit report d. All of the Above are True Statements e. None of the Above are True Statements
Audit evidence is more persuasive when : A_Information is provided by the board of directors of the company B_ The audit team comprises of high quality personnel C_ Audit evidence is inconsistent with that from another D_ Items of evidence from different sources or of a different nature are consistent
When component auditors are involved in the audit of group financial statements, the group auditors may issue a report thata. Refers to the component auditors, describes the extent of the component auditors’ work, and expresses an unmodified opinion.b. Does not consider or evaluate the component auditors’ work but expresses an unmodified opinion in a standard report.c. Places primary responsibility for the reporting on the component auditors.d. Names the component auditors, describes their work, and presents only the group auditors’ report.
STATEMENT 1: Audit working papers are the documents accumulated by the auditor showing the procedures performed, audit testing applied, information obtained, and conclusions reached. STATEMENT 2: Audit working papers aid the auditor in the conduct and supervision of the audit engagement. A. Only Statement 1 is incorrect B. Only Statement 1 is correct C. Both statements are incorrect D. Both statements are correct