Question: Which of the following would you not use as a benchmark for comparison when undertaking analytical procedures?

• 1. Other audit clients
• 2. Previous years
• 3. Other companies in the same industry
• 4. Budget

Question: Which of the following is true about written representations?

• 1. They are the best source of audit evidence
• 2. They should be used only when there is a lack of other substantive audit evidence
• 3. They should be used only when there is other substantive audit evidence to complement it
• 4. Shareholders receive a copy of all material written representations

Question: Which of the following statements is INCORRECT?

• 1. An auditor may serve on the board of directors of an audit client.
• 2. An auditor who is an immediate family member of the director of an audit client must not be assigned to the audit team.
• 3. Purchasing goods from an audit client on normal commercial terms does not create a threat to the auditor’s independence.
• 4. An auditor who was recently a director of an audit client must not be assigned to the audit team for that client.

Question: An auditor should not accept a loan on favourable commercial terms from an audit client because of the threat to his or her independence. The threat would be a___________?

• 1. Self-interest threat
• 2. Self-review threat
• 3. Advocacy threat
• 4. Familiarity threat

Question: Which one of the following may auditors NOT perform for their client?

• 1. Taking management decisions
• 2. Preparation of accounting records
• 3. Preparing tax computations
• 4. Advising on weaknesses in the internal control systems

Question: You have been proposed as auditor of a company. What is the first step that you should take?

• 1. Obtain the client’s permission to communicate with the existing auditor
• 2. Obtain the existing auditor’s working papers
• 3. Obtain a copy of the company’s most recent board minutes
• 4. Obtain a copy of the existing auditor’s letter of engagement

Question: Pick the odd one:

• 1. Checking the vouchers
• 2. Preparation of vouchers
• 3. Evaluation of internal control
• 4. None of the above

Question: Which of the following is not type of engagement standard?

• 1. Standards on Auditing
• 2. Standard on Quality Control
• 3. Standards on Review Engagement
• 4. Standards on Assurance Engagement

Question: How many Standards on Auditing have been issued?

• 1. 32
• 2. 34
• 3. 36
• 4. 38

Question: Auditing engagement can be performed w.r.t.

• 1. Profit making entity
• 2. Non-profit making entity
• 3. Corporate entity only
• 4. Any entity