siddharth
04-02-09, 03:37 PM
Hi,
Responses are open for discussion till Sunday
Here comes the second session questions,
1. Analytical procedures used in planning an audit should focus on identifying
a. Material weaknesses in the internal control structure.
b. The predictability of financial data from individual transactions
c. The various assertions that are embodied in the financial statements.
d. Areas that may represent specific risks relevant to the audit.
2. When preparing audit working papers it is important that
a. They be prepared in ink as a permanent record
b. They be prepared by the audit senior as junior staff do not have sufficient experience to prepare them
c. They be signed by the client as a precaution against the client subsequently claiming the auditor was negligent and the evidence recorded is incorrect.
d. They indicate the name of the staff members responsible for preparing and reviewing them and any conclusions that may be drawn from the evidence.
3. Which of the following is not a function of the preparation of working papers
a. to provide a basis for an overall assessment of the audit and the evidence available to support the expression of an option
b. to provide a guide for the planning and performance of next year’s audit
c. for use by the auditor on other engagements such as advising another client on the desirability of making a takeover bid for the audit client.
d. To introduce a discipline into the performance of the audit.
4. Standardized working papers are useful because they
a. make sure that all of the firm’s audits are done exactly the same way.
b. Facilitate the review of the audit since the reviewer will be accustomed to the layout, contents and purpose of such working papers
c. Eliminate the need for junior audit staff to have to make decisions
d. Eliminate the need for detailed planning since the only decision to be made is which strategy to adopt.
5. The auditor’s permanent working paper file should not normally include
a. Copies of the memorandum of association.
b. Extracts from the client’s bank statements
c. Details of mortgages
d. Past year’s financial statements.
I look forward more responses
Responses are open for discussion till Sunday
Here comes the second session questions,
1. Analytical procedures used in planning an audit should focus on identifying
a. Material weaknesses in the internal control structure.
b. The predictability of financial data from individual transactions
c. The various assertions that are embodied in the financial statements.
d. Areas that may represent specific risks relevant to the audit.
2. When preparing audit working papers it is important that
a. They be prepared in ink as a permanent record
b. They be prepared by the audit senior as junior staff do not have sufficient experience to prepare them
c. They be signed by the client as a precaution against the client subsequently claiming the auditor was negligent and the evidence recorded is incorrect.
d. They indicate the name of the staff members responsible for preparing and reviewing them and any conclusions that may be drawn from the evidence.
3. Which of the following is not a function of the preparation of working papers
a. to provide a basis for an overall assessment of the audit and the evidence available to support the expression of an option
b. to provide a guide for the planning and performance of next year’s audit
c. for use by the auditor on other engagements such as advising another client on the desirability of making a takeover bid for the audit client.
d. To introduce a discipline into the performance of the audit.
4. Standardized working papers are useful because they
a. make sure that all of the firm’s audits are done exactly the same way.
b. Facilitate the review of the audit since the reviewer will be accustomed to the layout, contents and purpose of such working papers
c. Eliminate the need for junior audit staff to have to make decisions
d. Eliminate the need for detailed planning since the only decision to be made is which strategy to adopt.
5. The auditor’s permanent working paper file should not normally include
a. Copies of the memorandum of association.
b. Extracts from the client’s bank statements
c. Details of mortgages
d. Past year’s financial statements.
I look forward more responses