siddharth
19-02-09, 04:16 AM
Hi,
Answers for this questions will be posted on Sunday
More responses for discussion are expected. Questions are not posted for my benefit, it is posted for our benefit.
I hope members consider this
1. Where the preliminary assessment of control risk is low for any particular audit objective
a. the auditor must perform tests of control in orde3r to confirm that controls are operating effectively
b. the auditor may proceed directly to performinga a reduced level of substantive testing
c. the auditor may consider performing tests of controls to confirm the preliminary assessment if it would result in reduction of the extent of audit effort.
d. The auditor may reduce the extent of tests of control otherwise necessary in confirming the assessment of control risk
2. Seggregation of duties is a means of ensuring that
a. collusion between employees cannot take place
b. performance and accuracy are independently checked
c. management cannot override laid down controls
d. employees cannot perpetrate and conceal errors or irregularities in the normal course of their duties.
3. The maximum reliance an auditor may place on control procedures in reducing the extent of substantive procedures is determined by
a. the results of tests of control over operating effectiveness
b. their design effectiveness in providing assurance that errors will be prevented or detected on a timely basis
c. their design effectiveness subject to sufficient evidence from tests of control that they are operating effectively
d. the reduction in audit effort that could be achieved through reliance on controls?
4. What would be an appropriate sample of invoices to gain reasonable assurance that all payments are properly authorized as part of annual audit?
a. Randomly pick one month and select every invoice for that month
b. Randomly select a sample of 100 invoices from throughout the financial year
c. Select all invoices greater than $ 5.000 generated throughout the year
d. Any of the above tests would be acceptable.
Answers for this questions will be posted on Sunday
More responses for discussion are expected. Questions are not posted for my benefit, it is posted for our benefit.
I hope members consider this
1. Where the preliminary assessment of control risk is low for any particular audit objective
a. the auditor must perform tests of control in orde3r to confirm that controls are operating effectively
b. the auditor may proceed directly to performinga a reduced level of substantive testing
c. the auditor may consider performing tests of controls to confirm the preliminary assessment if it would result in reduction of the extent of audit effort.
d. The auditor may reduce the extent of tests of control otherwise necessary in confirming the assessment of control risk
2. Seggregation of duties is a means of ensuring that
a. collusion between employees cannot take place
b. performance and accuracy are independently checked
c. management cannot override laid down controls
d. employees cannot perpetrate and conceal errors or irregularities in the normal course of their duties.
3. The maximum reliance an auditor may place on control procedures in reducing the extent of substantive procedures is determined by
a. the results of tests of control over operating effectiveness
b. their design effectiveness in providing assurance that errors will be prevented or detected on a timely basis
c. their design effectiveness subject to sufficient evidence from tests of control that they are operating effectively
d. the reduction in audit effort that could be achieved through reliance on controls?
4. What would be an appropriate sample of invoices to gain reasonable assurance that all payments are properly authorized as part of annual audit?
a. Randomly pick one month and select every invoice for that month
b. Randomly select a sample of 100 invoices from throughout the financial year
c. Select all invoices greater than $ 5.000 generated throughout the year
d. Any of the above tests would be acceptable.