The primary purpose of éstablisHing qUi to accepting a new client is to: 1. Enable the CPA firm to attest to the reliability of the client. 2. Satisfy the CPA fırm's duty to the public concerning the acceptance of new clients. 3. Minimize the likelihood of association with clients whose management lacks integrity. 4. Anticipate before performing any fieldwork whether an unmodified opinion can be expressed. O 2 O 1 O 3
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- Professional skepticism is a. The application of relevant training, knowledge and experience b. Adherence to the professional code of ethics c. An attitude that includes a questioning mind d. Necessary for a quality control system Clear my choiceChoose the one correct answer. The following are usually considered in the preparation of management letter [I] the letter should indicate that it is only for management's use [II] A description of the reportable conditions discovered [III] Auditor's suggestion to improve the client's internal control. *yes, no, yesno, yes, yesyes, yes, noyes, yes, yes2.You are an external auditor and you have agreed on a task completion a task with required outcomes to obtain a fee. Which of the following threat it will arise?Single choice. Self review threat Intimidation threat Advocacy threat Familiarity threat
- S1: Audit debriefing process should be led by the audit manager.S2: An audit benefits the public. Group of answer choices Only S2 is correct. Only S1 is correct. Both S1 and S2 are incorrect. Both S1 and S2 are correct.Identify how each of the following statements relates to the performance principle by considering which element(s) of the principle are related to that statement. (A statement may be related to more than one element.) Use the following elements in providing your response: Reasonable assurance • Planning and supervision • Materiality ⚫ Risk assessment • Audit evidence a. Evaluating the effectiveness of the client's internal control in preventing or detecting misstatements. b. Obtaining an understanding of the client's business and industry. c. Acknowledging that the risk of failing to detect a material misstatement cannot be reduced to zero. d. Obtaining confirmations from the client's customers as to the ending balances in accounts receivable. e. Preparing a written audit plan. f. Designing audit procedures to identify misstatements that would have a significant effect on financial statement users' decisions. g. Considering the likelihood that the account balance contains a material…Information Risk Analyst (IT Controls Audit) will help the organization assess risk controls and their effectiveness for current and future design improvements. To be successful in this career path YOU must be familiar with the concept Information Risk. a. Explain the term ‘information risk’ in your own words. b. Discuss three (3) causes of information risk. c. Discuss the three (3) main ways to reduce information risk. d. Differentiate between ‘assurance services’ and ‘non-assurance services,’ giving examples of each.
- Chapter 1- Fundamental Principles of Assurance Services 14. Which of the following is most likely a form of conclusion for a reasonahle assurance engagement? af A. "In our opinion, internal control is effective, in all material respects. based on XYZ criteria." B. "Based on our work described in this report, nothing has come to our attention that causes us to believe that internal control is not effective, in all material respects, based on XYZ criteria." C. Both A and B. D. Neither A nor B.Question 6 Which ONE of the following best describes professional scepticism? An auditor should: A After obtaining an explanation from a client always confirm this with another member of staff B Not believe anything that management tells him/her, without speaking to a third party C Apply a questioning mind to the information and evidence he/she obtains D Always consider the worst outcome H 111multiple choice When an independent auditor decides that the work performed by internal auditors may have a bearing on the nature, timing, and extent of the independent auditor's procedures, the independent auditor should evaluate the competence and objectivity of the internal auditors. Relative to objectivity, the independent auditor should: a) Consider the organizational level to which the internal auditor reports the results of their work. b) Review the training program in effect for the internal audit staff. c) Examine the quality of the internal audit reports. d) Consider the qualifications of the internal audit staff.
- Question 8 Rule 201, General Standards, requires a member to comply with standards and interpretations. Which of the following is NOT a standard covered by Rule 201. Sufficient relevant data Due Professional Care Independence Planning & Supervision. 9 ) Which of the following situations would most likely be in conflict with the responsibilities principle? Auditors document their assessment of control risk following their study of internal control. Auditors perform the engagement with the performance level expected of competent auditors. Auditors obtain expertise in their client's industry as they are conducting the audit examination. Auditors are directly involved with a client manager in a strategic decision-making capacity.Which one of the following is not included in the control environment? a. Integrity & Ethical values b. Organizational Structure c. Competence of Personnel d. External AuditorWhich one of the following is not included in the control environment? Question 17Answer a. Organizational Structure b. Integrity & Ethical values c. Competence of Personnel d. External Auditor