Which of the following matters is an auditor not required to communicate to those charged A. Significant adjustments arising from the audit that were recorded by management. B. The basis for the auditor's conclusions about the reasonableness of management's sensitive accounting estimates. C. The level of responsibility assumed by the auditor under generally accepted auditing standards. D. The degree of reliance the auditor placed on the management representation letter.

A moral or legal obligation to ensure the safety or well-being of others Could be defined as duty of care. An auditor's duty of care to a client would most likely be breached if the auditor failed to:  Select one: a.comply with the Cooperation Act 2001 & all relevant auditing standards.  b. Resolve their staffing issues. c. conduct the audit for the cheapest price. d.Prevent & detect earnings of management.

Explain the departures an auditor can award a client from an unqualified audit report.

What do auditors consider when determining the extent to which the internal auditors’ work will affect the auditors’ procedures?     A. The materiality of the account balance or transaction, the risk of material misstatement of the assertions, and the amount of subjectivity involved in evaluating the evidence gathered.   B. Only the risk of material misstatement of the assertions related to the account balance, transaction, or disclosure and the amount of subjectivity involved in evaluating evidence gathered.   C. Only the amount of subjectivity involved in evaluating the evidence gathered.   D. Only the materiality of the account balance or transaction and the risk of material misstatement of the assertions.

Critical audit matters are most likely to include those matters that: Multiple Choice Are communicated to the Public Company Accounting Oversight Board. Involve challenging, subjective or complex auditor Judgment. Are material weaknesses in internal control. Involve significant risks.

List of matters normally communicated to those charged with governance includes: a) The overall approach and scope of the audit, including any limitations on the scope of the audit. b) The accounting policies and any changes to them that could materially affect the financial statements. c) Adjustments arising as a result of audit procedures which may not materially impact the financial statements. d) Material events or uncertainties which could jeopardize the going concern status, and which does not require disclosure within the financial statements e) Disagreements with management over accounting treatments or disclosures Any expected modifications to the audit report f) Material weaknesses discovered in the internal systems and controls. All a) , b) , c) , d) , e) and f) Only a) , b) , e) and f) Only a) , b) and c) Only a) , b) , c) and e) Only a) , e) and f)

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

Which of the following accurately describes a characteristic of a management letter? Select all that apply. written on the auditor's letterhead O addressed to management or those charged with governance O reports internal control weaknesses O includes documentation of materiality and the audit plan O signed by management

In making client acceptance and continuance decisions, the auditor will perform various procedures in assessing the client.  Which of these would most likely not be one of those procedures? a. obtain background checks on management to assess management integrity b. review regulatory filings and examination reports c. analyze client financial statements and compare to industry metrics d. submit management to a lie detector test

Which of the following presumptions does NOT relate to the reliability of evidence? A. the more effective the internal control structure, the more assurance it provides about the accounting data and financial statements. B.an auditor's opinion, to be economically useful, is formed within reasonable time and based on evidence obtained at a reasonable cost. C. evidence obtained from independent sourcesoutside the entity is more persuasive than evidence secured solely within the entity. D. the independent auditor's direct personal knowledge, obtained through observation and inspection, is more persuasive than information obtained indirectly.