Standards on Auditing – Test 1

Due to inherent limitations of audit, there is ___________________ that some mis-statements will
_______________

Fraud is an intentional act involving use of deception to obtain an unjust advantage and can be
committed by

Due to inherent limitations of audit, there is ___________________ that some mis-statements will
_______________

Fraud is an intentional act involving use of deception to obtain an unjust advantage and can be
committed by

State which of the following statement is not true

Where auditor comes across a situation where any misstatement due to fraud or error could exist
then

Circumstances relating to possibility of fraud include

The management may override the controls in order to take advantage of the situation, whereby,
they may pass false entries in the book, is known as

State which of the following statement is misappropriation of assets

The accountant receives money from customer 2 but adjust it to customer 1’s account. This process
goes on and at no point of time will the customer balance shown properly, it refers as

Which of the following is not likely to be a fraud risk factor relating to management’s
characteristics

State which of the following constitutes possibility of fraud

Incentive or pressure to commit fraudulent financial reporting exist when

A perceived opportunity to commit fraud may exist when

Fraudulent financial reporting may be accomplished by _________________

Fraud can be committed by management overriding controls using the following techniques. State
which of the following options is correct?

Misappropriation of assets is often accompanied by

‘Fraud’ deals with _________________ but, ‘error’, on the other hand, refers to _______________ in financial
information

Even though the audit is properly planned and performed in accordance with Sass, some material
misstatements of the financial statements will not be detected, this is due to

Which of the following statement is not true, in respect of risk factors relating to misstatements
arising from fraudulent financial reporting?

Discrepancies in the accounting records, including

Conflicting or missing evidence, does not includes

Problematic or unusual relationships between the auditor and management, including

Which one of the following statements about fraud is correct?

Which one of the following does not necessarily constitute fraud?

Which of the following fraudulent activities constitutes misappropriation of assets?

Which one of the following does not constitute an appropriate audit planning procedure that the
auditor should employ relating to the risk of fraud?

When planning the audit, the auditor must take enquiries of management. Which one of the
following is not an appropriate enquiry of management about fraud?

With respect to financial statement fraud, which one of the following statements is not correct?

Which of the following SA deals with auditor’s responsibility to consider law and regulation in an
audit of financial statements