ADVANCED AUDIT AND ASSURANCE – Page 2

AAA – L3 – SA – Q5.4 – Evaluation and review

What is the key objective of an engagement quality review?

Question

The key objective of an engagement quality review is to:

A monitor the firm’s system of quality management

B ensure the audit procedures were carried out in accordance with professional standards

C ensure the auditor’s report issued is appropriate in the circumstances

D perform an objective evaluation of the significant judgments made by the audit team and the conclusions reached

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Standards, Auditor judgments, Engagement quality review, Quality management
Level: Level 3

Topic: Evaluation and review

AAA – L3 – SA – Q5.3 – Professional responsibility and liability

What should an auditor do upon suspecting fraudulent activity by a director?

Question

An audit engagement partner suspects that a director of a client company has been carrying out fraudulent activity. What would be the most appropriate immediate course of action?

A Challenge the suspected individual

B Report the suspicions to the audit committee of the client company

C Report the suspicions to the chairman of the board of the client company

D Seek legal advice

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit committee, Auditor Response, Fraud suspicion, Governance, Legal advice
Level: Level 3

Topic: Professional responsibility and liability

AAA – L3 – SA – Q5.2 – Rules of professional conduct

Which statement about auditor independence is incorrect?

Question

Which of the following statements is INCORRECT?

A An auditor may serve on the board of directors of an audit client.

B An auditor who is an immediate family member of the director of an audit client must not be assigned to the audit team.

C Purchasing goods from an audit client on normal commercial terms does not create a threat to the auditor’s independence.

D An auditor who was recently a director of an audit client must not be assigned to the audit team for that client.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Auditor Independence, Board of Directors, Commercial Transactions, Family members
Level: Level 3

Topic: Rules of Professional Conduct

AAA – L3 – SA – Q5.1 – The regulatory environment

What are the functions of an audit committee?

Question

Which of the following are functions of the audit committee?

1 Policy on giving non-audit work to the audit firm

2 Review of the performance of the external auditor

3 Review of the external auditor’s working papers

4 Review with the external auditors their report on the financial statements

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 committee, Auditor performance, Financial Statements, Governance, Non-Audit Work
Level: Level 3

Topic: The regulatory environment

AAA – L3 – SA – Q4.10 – Reporting

What should an auditor do if a material uncertainty about going concern is disclosed?

Question

A company prepares its financial statements on a going concern basis, but a material uncertainty exists about the ability of the company to continue as a going concern which is fully disclosed by management in the financial statements. In this situation, what shall the auditor do?

A The auditor’s report shall contain a ‘Material Uncertainty Related to Going Concern’ paragraph

B The auditor’s report shall state an adverse opinion

C The auditor’s report shall state a disclaimer of opinion

D The auditor’s report shall contain an ’emphasis of matter’ paragraph

Answer

Find Related Questions by Tags, levels, etc.

Tags: Auditor’s Report, Disclosure, Financial Statements, Going Concern, Material Uncertainty
Level: Level 3

Topic: Reporting

AAA – L3 – SA – Q4.9 – Assurance services

What is true about assurance engagements?

Question

Which of the following is true about assurance engagements?

A They are an alternative to an audit

B The subject matter is the responsibility of the professional accountant

C Assurance engagements can either have reasonable (high) or limited (moderate) levels of assurance

D There is no risk for the professional accountant

Answer

Find Related Questions by Tags, levels, etc.

Tags: Assurance engagements, Limited assurance, Professional Responsibility, Reasonable assurance
Level: Level 3

Topic: Assurance Services

AAA – L3 – SA – Q4.8 – Group audits

What must a group auditor communicate to group management?

Question

Which of the following items shall be communicated by a group auditor to the group management?

1 an overview of the planned scope and timing of the audit

2 an overview of the work to be performed at the components of the group

3 component performance materiality

4 Any fraud or suspected fraud

A 1,2,3 and 4

B 1 only

C 1 and 4 only

D 1,2 and 4 only

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Scope, Communication, Component audit, Fraud, Group auditor
Level: Level 3

Topic: Group audits

AAA – L3 – SA – Q4.7 – Audit evidence

When are analytical procedures most reliable in an audit?

Question

Analytical procedures are most reliable when applied to:

A estimates

B non-recurring transactions

C revenue and expenditure

D asset and liability balances

Answer

Find Related Questions by Tags, levels, etc.

Tags: Analytical Procedures, Audit reliability, Expenditure, Financial analysis, Revenue
Level: Level 3

Topic: Audit Evidence

AAA – L3 – SA – Q4.6 – Audit evidence

Which factors contribute to inherent risk in an audit?

Question

Which of the following may be factors contributing to inherent risk?

1 Number of customers

2 Strength of internal controls

3 Number of products

4 Rate of staff turnover

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: Customers, Inherent Risk, Internal controls, Products, Risk Assessment, Staff turnover
Level: Level 3

Topic: Audit Evidence

AAA – L3 – SA – Q4.5 – Audit evidence

How does an auditor verify understanding of a transaction process and its controls?

Question

An auditor checks his understanding of a transaction process and its internal controls by means of:

A ATTs

B tests of controls

C substantive tests

D walk-through tests

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Procedures, Evidence collection, Internal controls, Transaction process, Walk-through tests
Level: Level 3

Topic: Audit Evidence

Subject (SQ): ADVANCED AUDIT AND ASSURANCE

Search

Filter by Professional Bodies

Filter by Subject

Filter by Topics

Filter by Levels

AAA – L3 – SA – Q5.4 – Evaluation and review

What is the key objective of an engagement quality review?

AAA – L3 – SA – Q5.3 – Professional responsibility and liability

What should an auditor do upon suspecting fraudulent activity by a director?

AAA – L3 – SA – Q5.2 – Rules of professional conduct

Which statement about auditor independence is incorrect?

AAA – L3 – SA – Q5.1 – The regulatory environment

What are the functions of an audit committee?

AAA – L3 – SA – Q4.10 – Reporting

What should an auditor do if a material uncertainty about going concern is disclosed?

AAA – L3 – SA – Q4.9 – Assurance services

What is true about assurance engagements?

AAA – L3 – SA – Q4.8 – Group audits

What must a group auditor communicate to group management?

AAA – L3 – SA – Q4.7 – Audit evidence

When are analytical procedures most reliable in an audit?

AAA – L3 – SA – Q4.6 – Audit evidence

Which factors contribute to inherent risk in an audit?

AAA – L3 – SA – Q4.5 – Audit evidence

How does an auditor verify understanding of a transaction process and its controls?

Our Offerings

Contact Info

My Account

Get In Touch

Subject (SQ): ADVANCED AUDIT AND ASSURANCE

Search

Filter by Professional Bodies

Filter by Subject

Filter by Topics

Filter by Levels

What is the key objective of an engagement quality review?

You're reporting an error for "AAA – L3 – SA – Q5.4 – Evaluation and review"

What should an auditor do upon suspecting fraudulent activity by a director?

You're reporting an error for "AAA – L3 – SA – Q5.3 – Professional responsibility and liability"

Which statement about auditor independence is incorrect?

You're reporting an error for "AAA – L3 – SA – Q5.2 – Rules of professional conduct"

What are the functions of an audit committee?

You're reporting an error for "AAA – L3 – SA – Q5.1 – The regulatory environment"

What should an auditor do if a material uncertainty about going concern is disclosed?

You're reporting an error for "AAA – L3 – SA – Q4.10 – Reporting"

What is true about assurance engagements?

You're reporting an error for "AAA – L3 – SA – Q4.9 – Assurance services"

What must a group auditor communicate to group management?

You're reporting an error for "AAA – L3 – SA – Q4.8 – Group audits"

When are analytical procedures most reliable in an audit?

You're reporting an error for "AAA – L3 – SA – Q4.7 – Audit evidence"

Which factors contribute to inherent risk in an audit?

You're reporting an error for "AAA – L3 – SA – Q4.6 – Audit evidence"

How does an auditor verify understanding of a transaction process and its controls?

You're reporting an error for "AAA – L3 – SA – Q4.5 – Audit evidence"

admin

Pick a Form