Auditing

A. The assessed level of control risk

B. The possibility of peer review

C. The nature of auditor’s report

D. The content of management representation letter

A. Randomly

B. Disproportionately

C. Directly

D. Inversely

A. For the time period the entity remains a client of the audit firm.

B. For a period of ten years

C. For a period auditor opines them to be useful in servicing the client

D. For the period the audit firm is in existence.

A. May be eliminated for an account balance under certain conditions

B. Are designed to discover significant subsequent events

C. Will increase proportionately when the auditor decreases the assessed level of control risk

D. May be test of transactions, test of balance and analytical procedures

A. Extracts from client’s bank statements

B. Past year’s financial statements

C. Attorney’s letters

D. Debt agreements

A. To be reliable, evidence should conclusive rather than persuasive

B. Effective internal control system provides reliable audit evidence

C. Evidence obtained from outside sources routed through the client

D. All are correct.

A. To provide a basis for review of audit work

B. To provide a basis for subsequent audits

C. To ensure audit work is being carried out as per programme

D. To provide a guide for advising another client on similar issues

A. To detect errors or fraud.

B. To comply with GAAP

C. To gather sufficient appropriate evidence

D. To assess audit risk

A. Management’s integrity

B. Auditor’s experience and professional judgment

C. Auditor’s qualification

D. Control risk

A. Evidence for audit conclusions

B. Owned by the client

C. Owned by the auditor

D. Retained in auditor’s office until a change in auditors