Quality Control and Engagement Standards- Test 4

Requirements of SA 250 are designed

With reference to SA 250, auditor is required to collect sufficient appropriate audit evidence for:

With reference to SA 250, auditor is required to collect sufficient appropriate audit evidence for:

During the audit, the auditor shall remain alert to the possibility that other audit procedures applied may bring instances of non-compliance or suspected non-compliance with laws and regulations to the auditor’s attention. Such audit procedures may include:

SA 260 deals with the auditor’s responsibility to communicate with those charged with governance in an audit of financial statements. The appropriate person(s) within the entity’s governance structure with whom auditor is to communicate will be determined by_________

The auditor shall communicate in writing with those charged with governance regarding significant findings from the audit if, in the auditor’s professional judgment, oral communication would not be adequate. Which of the following requires mandatory written communication?

Timely communication throughout the audit contributes to the achievement of robust two-way dialogue between those charged with governance and the auditor. However, the appropriate timing for communications will vary with the circumstances of the engagement. For an initial audit engagement, communications regarding planning matters may

As per SA 260, which of the following is not an item that auditors must report to TCWG:

While performing an audit of financial statements, auditor decide to include certain matters in the auditor’s report as key audit matters. These matters:

Where matters required by SA 260 to be communicated are communicated orally, the auditor

Deficiency in internal control exists when:

The significance of a deficiency or a combination of deficiencies in internal control depends

The auditor must communicate to management in writing significant deficiencies in internal control that are of sufficient importance to merit management’s attention. The communication should include:

Which of the following is not an indicator of significant deficiencies in internal control

Which of the following is not an objective of SA 299?

In planning the audit, the auditor makes judgments about the size of misstatements that will be considered material. These judgments provide a basis for:

Information acquired during the planning phase about business operations may include all of the following except:

Which of the following is one of the procedures in the planning phase?

As per SA 300, the audit plan shall include a description of__________

When establishing the overall audit strategy, the auditor shall determine materiality for the________.

Process of establishing the overall audit strategy assists the auditor to determine, subject to the completion of the auditor’s assessment procedures, such matters as:

As per SA 300, the auditor shall establish an overall audit strategy that sets the scope, timing and direction of the audit, and that guides the development of the audit plan. In establishing the overall audit strategy, the auditor shall:

Which of the following is correct?

The risk that a misstatement that could occur in an assertion about a class of transaction, account balance or disclosure and that could be material, either individually or when aggregated with other misstatements, will not be prevented, or detected and corrected, on a timely basis by the entity’s internal control is known as:

Risk arises to inherent limitations of control is known as:

Which of the following is not a component of Risk Assessment Procedures?

Risk arises on account of judgment on part of auditor, test nature of audit and nature of audit evidences collected:

Procedures performed to obtain an understanding of the entity and its environment, including the entity’s internal control, to identify and assess the risks of material misstatement, whether due to fraud or error, at the financial statement and assertion levels are known as:

SA 315 “Identifying and Assessing the Risk of material Misstatements through understanding the Entity and its Environment” emphasizes:

Business operations, types of investments, capital structure and financing, and ownership structures are areas that are considered when obtaining an understanding of: