Quality Control and Engagement Standards- Test 3

Which of the following is not an inherent limitation of audit?

Which of the following is incorrect?

As per SA 210 “Agreeing the Terms of Audit Engagements”/ preconditions for an audit may be defined as the use by management of an acceptable financial reporting framework in the preparation of the financial statements and the agreement of management and, where appropriate, those charged with governance to the premise on which an audit is conducted.
In order to establish whether the preconditions for an audit are present, the auditor shall:

If management or those charged with governance impose a limitation on the scope of the auditor’s work in the terms of a proposed audit engagement such that the auditor believes the limitation will result in the auditor disclaiming an opinion on the financial statements, the auditor shall accept the engagement only it:

In case of recurring audit,

In case of recurring audits, the auditor shall assess whether circumstances require revision in terms of the audit engagement and whether there is a need to remind the entity of the existing terms of the audit engagement. Which of the following circumstance do not require revision in the terms of the audit engagement or to remind the entity of existing terms:

The agreed terms of the audit engagement shall be recorded in an audit engagement letter which shall include the following except-

If the terms of the audit engagement are changed, the auditor and management shall agree on and ___

A request from the entity for the auditor to change the terms of the audit engagement may result from____

If law or regulation prescribes in sufficient detail the terms of the audit engagement as required by SA 210 to be included in letter of engagement, the auditor__________.

X, a Chartered Accountant was engaged by PQR & Co. Ltd. for auditing their accounts. He sent his letter of engagement to the Board of Directors, which was accepted by the Company. In the course of audit of the company, the auditor was unable to obtain sufficient appropriate audit evidence regarding receivables. The client requested for a change in the terms of engagement.

Which of the following standard required implementation of quality control procedures while performing an audit engagement:

Which of the following are not the responsibilities of the engagement partner?

After fieldwork audit procedures are completed, a partner of the CA firm who has not been involved in the audit performs a second or wrap-up working paper review. This second review usually focuses on_______

SA 230 defines the term audit documentation as to the record of:

As per SA 230 auditor is required to prepare audit documentation that provides a__________and _________record of the basis of the auditor’s report.

The auditor shall assemble the audit documentation in an audit file and complete the administrative process of assembling the final audit file on a timely basis within__________of the date of the auditor’s report.

Audit documentation shall be maintained for a period of 7 years from the_________

As per SA 230, unless otherwise specified by law and regulation, audit documentation is the property of:

The auditor is required to prepare audit documentation sufficient to enable an experienced auditor, having no previous connection with the audit, to understand the_______in reaching conclusions on significant matters arising during the audit.

Which of the following factors most likely would affect the auditor’s judgment about the quantity, type and contact of an auditor’s working papers?

__________refers to one or more folders or other storage media, in physical or electronic form, containing the records that comprise the audit documentation for a specific engagement.

B is the Principal Auditor of ABC Co. Ltd., with 8 branches audited by 8 Branch Auditors. B wanted to ensure that the works of Branch Auditors were adequate for the purpose of his audit. Hence, he insisted on Branch Auditors to get familiar with a check list he prepared for branches and, besides, required then to share the working papers complied by them for his review and return.

SA 240 define fraud a ‘an intentional act by one or more individuals among management, those charged with governance,_________, involving the use of deception to obtain an in just or illegal advantage’.

A situation where some believes they have a favorable or promising combination of circumstances to commit an undetectable fraud is the description of:

Which of the following considerations of fraud and error by the auditor is not required by SA 240?

Concerning fraud, the auditor’s current position is that:

Fraudulent financial reporting involves

If, as a result of a misstatement resulting from fraud or suspected fraud, the auditor encounters exceptional circumstances that bring into question the auditor’s ability to continue performing the audit, the auditor shall:

SA 250 deals with