Question

1. Which of the following is classified as an attestation service? A) Compilation B) Tax planning engagement C) Consulting engagement D) Audit of historical financial statements

2. Assessing that a company’s policies effectively ensure the company’s compliance with environmental standards and laws is: A) an example of a business performance measurement services B) part of financial statement audit process C) an example of an assurance service D) part of the internal auditor’s responsibilities

3. What is the accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria? A) marketing B) accounting C) finance D) auditing

4. To be appointed as the auditor of a corporation under the Corporations Act 2001, the relevant person must be a registered company auditor or an authorized audit company. Which of the followings are criteria for registration by ASIC? A) an individual must satisfy requirements in relation to his or her educational qualifications B) requirements established in s.1280 of the Corporations Act. C) all individuals must satisfy requirements in relation to his or her character D) all of the above

5. Which entities require rotation of auditors? A) listed companies B) listing companies and other disclosing entities C) charities and other non-profit organisations D) all entities who owe money to the Australian Taxation Office

6. In third-party suits, which of the auditor’s defences contends lack of privity of contract? A) non-negligent performance B) absence of casual connections C) contributory negligence Page 3 of 10 D) lack of duty

7. Which of the following items is an example of a “self-interest” threat to auditor independence? A) the auditor being influenced by undue pressure from the audit client B) the auditor promoting a client’s business C) a financial interest influencing the auditor’s judgment D) the auditor not appropriately evaluating the results of an associate auditor

8. The main reason for communication between the predecessor and successor auditor is: A) establish the likelihood that fees will be paid B) pass on working papers C) satisfy ASIC requirements D) determine any implications for the independence of the successor

9. The auditor should not assume that management is dishonest, but the possibility of dishonesty must be considered. This shows: A) adhering to the Code of Ethics for Professional B) an attitude of professional scepticism C) unprofessional behaviour D) due diligence

10. Which of the following is an example of misappropriation of assets resulting in a misstatement in the balance sheet? A) Cash from a cash sale was stolen, and the transaction was not recorded B) Assets were stolen, and the misappropriation was discovered C) Cash collected from a customer was stolen, and the account receivable for the customer’s account was not credited D) Both A and C

11. Which of the following is NOT one of the five broad categories of assertions, as adapted from ASA315? A) existence or occurrence B) presentation or disclosure C) valuation or allocation D) general or specific transaction objectives Page 4 of 10

12. Which one of the following statements is NOT correct?

A) It would be a violation of the completeness assertion if management recorded a sale that did not take place. B) the completeness assertion deals with matters opposite the existence / occurrence assertion. C) the existence /occurrence assertion is concerned with amounts that should not have been included. D) the completeness assertion is concerned with the possibility of omitting items that should have been included in the financial statements.

Answer 1

1. ATTESTATION SERVICES is an independent review of a company`s financial statement conducted by the CPA (CERTIFIED PUBLIC ACCOUNTANT). Here, OPTION (D) is correct, on the ground that CPA delivers report with concluation about the realibility of the data.

2. Compilance objective is fundamentally operational. OPTION (D) is correct as internal auditors responsibility to study environmental study and laws and report to the management.

3. AUDITING shows Accumulation and evidence of the information and report from time to time so, OPTION (D) is good and seems authentic

4.To be the auditor of the CAORPORATION ACT 2001 all the requirement given under this act must be complted for to declared audtior OPTION (B) is suitable and correct.

5.A LISTED COMPANIES requires an Rotation of AUDITORS a per the companies ACT so, OPTION (A) is good

6.Privity of cntract means that third party cannot sue if it is not party to contract here OPTION (B) is seems to be good and accetable.

7. AUDITOR duty is free from any BIAS or any self interest and financial interest influence the auditors judgement, so OPTION (C) IS SEEMS correct.

8.FOR the success of audting there must be good communication between precedor and the succedor auditor for the requirement of ASIC. so, OPTION (C) IS GOOD

9.OPTION (D) is correct. AN auditor should considered DUE diligence while delivering report to the management and also taken care of full observation of the maangement action.

10.MISSAPPROTION of assets clearly indicates that STOLEN OF ASSETS, so OPTION (B) is correct where Assets is actually stolen.

11.As per ASA315 EVERY auditor make considered due care and not for general or specific transcation so

OPTION (D) Is seems to be correct.

12. as per the consideration OPTION (B) is right as Asseration principle taken item which is oppsite the asseration or coccurence theory.