7/18/2019 Audit 2

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AUDITING THEORY

8. Which of the following should an audito do when contol is! is assessed at the"a#i"u" le$el%A. &efo" fewe su'stanti$e tests of details.(. &efo" "oe tests of contols.). Docu"ent the assess"ent.D. Docu"ent the intenal contol s*ste" "oe e#tensi$el*.

+. Which of the following is least li!el* to 'e a test of a contol%A. In,uiies of a--o-iate -esonnel.(. Ins-ection of "anage"ents engage"ent lette.). O'se$ation of the a--lication of a -olic*.D. Re-efo"ance of the a--lication of a -olic*.

/0. Which of the following contols "a* -e$ent the failue to 'ill custo"es foso"e shi-"ents%A. Each shi-"ent should 'e su--oted '* a -enu"'eed sales in$oice that is

accounted fo.(. Each sales ode should 'e a--o$ed '* authoi1ed -esonnel.

). 2ales 3ounal enties should 'e econciled to dail* sales su""aies.D. Each sales in$oice should 'e su--oted '* a shi--ing docu"ent.

//. If the o'3ecti$e of a test of details is to detect o$estate"ents of sales4 theaudito should tace tansactions fo" theA. )ash ecei-ts 3ounal to the sales 3ounal.(. 2ales 3ounal to the cash ecei-ts 3ounal.). 2ouce docu"ents to the accounting ecods.D. Accounting ecods to the souce docu"ents.

/5. Which of the following is least li!el* to 'e consideed when assessing inheentis!%A. Nonoutine tansactions.(. Esti"ation tansactions.). 2usce-ti'ilit* to theft.D. E#-ected e6ecti$eness of contols.

/7. The is! that an auditos -ocedues will lead to the conclusion that a "ateial"isstate"ent does not e#ist in an account 'alance when4 in fact4 such"isstate"ent does e#ist is efeed to asA. Audit is!(. Inheent is!). )ontol is!D. Detection is!

/. E$idential "atte concening -o-e segegation of duties odinail* is 'esto'tained '*A. &e-aation of a 9owchat of duties -efo"ed '* a$aila'le -esonnel.(. In,uiing whethe contol acti$ities o-eated consistentl* thoughout the

-eiod.). Re$iewing 3o' desci-tions -e-aed '* the -esonnel de-at"ent.D. Diect -esonal o'se$ation of the e"-lo*ees who a--l* contol acti$ities.

/:. Accoding to the )ode of &ofessional Ethics fo )&As4 which of the following feeaange"ents is -ohi'ited%A. A fee fo a e$iew of ;nancial state"ents that is 'ased on ti"e s-ent on the

engage"ent.

(. A fee fo a e$iew of ;nancial state"ents that is 'ased on ti"e s-ent and a-e"iu" fo the is! in$ol$ed.

). A fee fo a e$iew engage"ent that is 'ased on a ;#ed fee of &/:4000.D. A fee fo a e$iew engage"ent that $aies de-ending on the a"ount of 

;nancing that the co"-an* "a* o'tain.

/<. Which of the following is not odinail* -efo"ed in es-onse to the is! of "anage"ent o$eide%A. E$aluating the ationale fo signi;cant unusual tansactions.(. O'se$e counts of in$ento* at all locations.). Re$iew accounting esti"ates fo 'ias.D. Test a--o-iateness of 3ounal enties and ad3ust"ents.

 

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