Level 3 – Page 5

AAA – L3 – SA – Q1.10 – Audit Opinion

Audit opinion for disclosed zero-interest loan.

Question

If a client has a loan from another group company at zero rate of interest and discloses it in a note to the financial statements, what is the correct audit opinion?

A It depends whether the item is material

B Qualified opinion, ‘except for’

C Qualified opinion, ‘adverse’

D Unqualified

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit opinion, Financial Statement Disclosure, Going Concern, ICAG
Level: Level 3

Topic: Reporting

AAA – L3 – SA – Q1.9 – Negative Assurance

Definition of negative assurance.

Question

What is meant by negative assurance?

A The auditor cannot give an opinion due to lack of evidence.

B The client’s financial statements were found to be materially misstated.

C The auditor could not conduct any tests due to lack of controls.

D The auditor did not find anything to indicate that a material misstatement exists.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Assurance engagements, Audit opinion, ICAG, Negative Assurance
Level: Level 3

Topic: Assurance Services

AAA – L3 – SA – Q1.8 – Going Concern Audit

Incorrect statement about going concern audit.

Question

Which of the following is NOT true about audit of the appropriateness of management’s use of the going concern basis of accounting?

A The auditor must assess the appropriateness of the going concern basis of accounting.

B Auditing the cash flow forecast is a good source of audit evidence.

C Written representations are usually sufficient on their own.

D If there a material uncertainty exists with regards to going concern, an unmodified audit opinion is possible if a Material Uncertainty Related to Going Concern paragraph is included.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Evidence, Audit opinion, Going Concern, ICAG
Level: Level 3

Topic: Evaluation and review

AAA – L3 – SA – Q1.7 – Impairment

Incorrect statement about impairment.

Question

Which of the following statements is INCORRECT?

A Goodwill must be reviewed annually for impairment

B There is impairment when the recoverable amount is above the carrying amount

C The recoverable amount is the higher of fair value less costs to sell and value in use

D Value in use essentially involves discounted cash flow forecasts

Answer

Find Related Questions by Tags, levels, etc.

Tags: Goodwill, ICAG, Impairment, Recoverable Amount
Level: Level 3

Topic: Evaluation and review

AAA – L3 – SA – Q1.6 – Business Risks

Identifying external business risk.

Question

The following are all business risks. Which is the odd one out?

A High financial gearing

B The rate of inflation

C Overtrading

D A dominant chief executive

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Risks, External Risk, ICAG, Internal Risk
Level: Level 3

Topic: The audit approach

AAA – L3 – SA – Q1.5 – Business Risk Approach

Disadvantage of business risk audit approach.

Question

One of the disadvantages with a business risk approach to the audit is:

A A perceived conflict with auditor independence

B Increase in knowledge of the client’s business

C A reduced focus on processing errors

D More senior staff are involved

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Strategy, Auditor Independence, Business Risk Approach, ICAG
Level: Level 3

Topic: The audit approach

AAA – L3 – SA – Q1.4 – Engagement Letter

Contents of a statutory audit engagement letter.

Question

Matters covered in an engagement letter for a statutory audit will normally include:

1 Use of internal audit

2 Use of experts

3 Number of audit personnel who will be involved in the audit

4 Basis of fees

A 1, 2 and 3 only

B 1, 3 and 4 only

C 2, 3 and 4 only

D 1, 2 and 4 only

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Procedures, Engagement Letter, ICAG, Statutory Audit
Level: Level 3

Topic: Practice management

AAA – L3 – SA – Q1.3 – IESBA Code

Correct statement about IESBA Code.

Question

Which of the following statements is correct with regards to the IESBA Code?

A A key audit partner of a listed company shall be rotated after seven years serving as the key audit partner.

B non-audit work from a client must not exceed in amount 100% of the income obtained from audit work for the client.

C Accountancy work shall not be carried out for an unlisted company client.

D Overdue fees from a client are permissible provided that this arrangement has been agreed between the audit firm and the client.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Auditor Rotation, ICAG, IESBA Code, Non-Audit Work
Level: Level 3

Topic: Rules of Professional Conduct

AAA – L3 – SA – Q1.1 – Engagement Type

Type of engagement for preparing tax computation.

Question

If a firm of accountants is engaged to prepare a company’s tax computation, what sort of engagement is this?

A Compilation

B Review

C Limited assurance

D Agreed-upon procedures

Answer

Find Related Questions by Tags, levels, etc.

Tags: Assurance services, Compilation engagement, ICAG, Tax Computation
Level: Level 3

Topic: Assurance Services

SCS – L3 – Q43 – Strategy, stakeholders and mission

Explain four expectations of leaders in strategic management for organizational transformation.

Question

(a) Transformational leaders have been posited to impact an organization’s culture, structure, and strategy. These types of leaders manifest themselves as change catalysts, who manipulate organizational factors with the aim of improving knowledge cycles.

Required:

Explain FOUR expectations of leaders in strategic management.

(b) One of the criticisms levelled against the five competitive forces model is that it is static – i.e. it does not focus on the dynamic nature of the business environment. Thus, two other concepts that are proposed to deal with competition dynamics are the concepts of strategic group analysis and the cycle of competition.

Required:

Explain the concept of strategic group analysis and identify THREE examples of common strategic characteristics that define a strategic space. (c)

Demand conditions in the home market is one of the four factors in the Porter’s Diamond Model used for analysing the international environment before formulating an international strategy. The home market determines how firms perceive, interpret and respond to buyer needs.

Required:

Explain THREE home conditions that may put pressure on firms to innovate and provide a launch pad for global ambitions.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Leadership, Organizational Change, Strategic management, Transformational Leadership
Level: Level 3

Topic: stakeholders and mission, Strategy

Level (SQ): Level 3

Search

Filter by Professional Bodies

Filter by Subject

Filter by Topics

Filter by Levels

AAA – L3 – SA – Q1.10 – Audit Opinion

Audit opinion for disclosed zero-interest loan.

AAA – L3 – SA – Q1.9 – Negative Assurance

Definition of negative assurance.

AAA – L3 – SA – Q1.8 – Going Concern Audit

Incorrect statement about going concern audit.

AAA – L3 – SA – Q1.7 – Impairment

Incorrect statement about impairment.

AAA – L3 – SA – Q1.6 – Business Risks

Identifying external business risk.

AAA – L3 – SA – Q1.5 – Business Risk Approach

Disadvantage of business risk audit approach.

AAA – L3 – SA – Q1.4 – Engagement Letter

Contents of a statutory audit engagement letter.

AAA – L3 – SA – Q1.3 – IESBA Code

Correct statement about IESBA Code.

AAA – L3 – SA – Q1.1 – Engagement Type

Type of engagement for preparing tax computation.

SCS – L3 – Q43 – Strategy, stakeholders and mission

Explain four expectations of leaders in strategic management for organizational transformation.

Our Offerings

Contact Info

My Account

Get In Touch

Level (SQ): Level 3

Search

Filter by Professional Bodies

Filter by Subject

Filter by Topics

Filter by Levels

Audit opinion for disclosed zero-interest loan.

You're reporting an error for "AAA – L3 – SA – Q1.10 – Audit Opinion"

Definition of negative assurance.

You're reporting an error for "AAA – L3 – SA – Q1.9 – Negative Assurance"

Incorrect statement about going concern audit.

You're reporting an error for "AAA – L3 – SA – Q1.8 – Going Concern Audit"

Incorrect statement about impairment.

You're reporting an error for "AAA – L3 – SA – Q1.7 – Impairment"

Identifying external business risk.

You're reporting an error for "AAA – L3 – SA – Q1.6 – Business Risks"

Disadvantage of business risk audit approach.

You're reporting an error for "AAA – L3 – SA – Q1.5 – Business Risk Approach"

Contents of a statutory audit engagement letter.

You're reporting an error for "AAA – L3 – SA – Q1.4 – Engagement Letter"

Correct statement about IESBA Code.

You're reporting an error for "AAA – L3 – SA – Q1.3 – IESBA Code"

Type of engagement for preparing tax computation.

You're reporting an error for "AAA – L3 – SA – Q1.1 – Engagement Type"

Explain four expectations of leaders in strategic management for organizational transformation.

You're reporting an error for "SCS – L3 – Q43 – Strategy, stakeholders and mission"

admin

Pick a Form