1、the board of bjm co has asked your audit firm (yht & co) to conduct a review of bjm‘s compliance with hygiene regulations. the partner responsible for the review engagement has asked you to tell him what level of assurance you believe yht & co should provide, and also what type of opinion the firm should give. what is the level of assurance and type of opinion that can be provided on this review engagement? a、level of assurance report wording reasonable positive b、level of assurance report wording reasonable negative c、level of assurance report wording limited positive d、level of assurance report wording limited negative
1、which (1) two of the following are elements of an assurance engagement? a three-party relationship (2) suitable criteria (3) determination of materiality (4) an engagement letter a、(1) and (2) only b、(1) and (3) only c、(2) and (3) only d、(1), (2) and (3)
2、which of the following is the most appropriate definition of the external audit? a、the external audit is an exercise carried out by auditors in order to give an opinion on whether the financial statements of a company are materially misstated. b、the external audit is an exercise carried out in order to give an opinion on the effectiveness of a company's internal control system. c、the external audit is performed by management to identify areas of deficiency within a company and to make recommendations to mitigate those deficiencies. d、the external audit provides negative assurance on the truth and fairness of a company's financial statements.
3、who is ultimately responsible for a company's system of internal controls? a、external auditors b、board of directors c、internal auditors d、audit committee
4、the examination of the economy, efficiency and effectiveness of activities and processes. which of the following internal audit assignments is described below? a、regulatory compliance audit b、value for money audit c、financial audit d、it audit
5、which two of the following characteristics apply to internal audit? (1) the purpose is to improve the company's operations. (2) reports to shareholders on whether the financial statements give a true and fair view of affairs. (3) auditors may be employees of the company (4) evidence is collected in accordance with relevant isas. a、(1) and (3) b、(2) and (4) c、(1) and (4) d、(2) and (3)
6、directors are stewards of the investment made by shareholders in a company.
7、the level of assurance provided by an external audit is absolute.
chapter 2 statutory audit and regulation
2.3 regulation of auditors随堂测验
1、the acca has its own monitoring unit which inspects registered auditors on a regular basis.
2、a person does not have to satisfy membership criteria to become a member of an rsb.
1、what is the correct order of the following stages involved in the development of an isa? distribution of exposure draft for public comment consideration of comments received as a result of the exposure draft approval by iaasb members establishment of task force to develop draft standard discussion of proposed standard at a public meeting a、(1), (5), (4), (3), (2) b、(3), (4), (1), (2), (5) c、(4), (5), (1), (2), (3) d、(5), (4), (2), (1), (3)
2、who normally appoints the external auditors of a company? a、directors b、shareholders c、audit committee d、senior management
3、which of the following is/are not a statutory right of the auditors of a limited liability company? (1) a right to attend all directors' meetings and receive all notices and communications relating to such meetings. (2) a right to speak at general meetings on any part of the business that concerns them as auditors. (3) a right to attend any general meeting and receive all notices and communications relating to such meetings. a、(1) only b、(1) and (3) c、(2) only d、(2) and (3)
4、which type of risk is the internal auditor normally responsible for monitoring? a、audit risk b、business risk c、audit risk and business risk d、neither audit risk nor business risk
5、which of the following internal audit assignments aims to monitor management's performance an that company policy is followed? a、value for money b、fraud investigation c、financial d、operational
6、which of the following statements best reflects the auditor's duty of confidentiality? a、auditors must never, under any circumstances, disclose any matters of which they become aware during the course of the audit to third parties, without the permission of the client. b、auditors may disclose any matters in relation to criminal activities to the police or taxation authorities, if requested to do so by the police or a tax inspector. c、auditors may disclose matters to third parties without their client's consent if it is in the public interest, and they must do so if there is a statutory duty to do so. d、auditors may only disclose matters to third parties without their client's consent if the public interest or national security is involved.
7、the format of the internal audit report is governed by statute
chapter 3 corporate governance
3.3 communication with those charged with governance随堂测验
1、the oecd principles strongly recommend: a、an annual audit b、internal audit c、directors should not receive pay d、directors should be non-executive
2、when a company cannot easily find non-executive directors it should not have an audit committee
1、which of the following statements is true regarding the audit committee? a、an audit committee must comprise at least four independent non-executive directors. b、where there is no internal audit function the audit committee should consider the need for one on an annual basis. c、the role and responsibilities of the audit committee are set out in statute. d、every company must have an audit committee
2、which of the following are valid disadvantages of having an audit committee? a、it can undermine the authority of the board of directors. b、the internal audit function may communicate directly with the audit committee rather than with management. c、it may be difficult to find non-executive directors with the relevant experience. d、the role and responsibilities of the audit committee are set out in statute.
3、which of the following is a limitation of the internal audit function? a、the internal audit report is not circulated to the members. b、internal audit assignments are designed to meet the needs of the business. c、internal auditors may be employees of the company. d、internal auditors may report to an audit committee.
4、which of the following is not a benefit of establishing an audit committee? a、reduced opportunity of fraud, as the audit committee can advise the executive directors on managing the risks in the financial reporting process. b、greater external audit independence, as the audit committee can be responsible for appointing the external auditors c、reduced external audit fees, as the presence of the audit committee reduces audit risk and consequently, the amount of audit procedures required. d、strengthen internal audit function
5、a private company has requested that its auditor prepare a valuation report on a prospective acquisition target in order to help it obtain finance for the acquisition from its bank. which of the following threats may arise if the auditor agrees to take on this assignment? a、self-review threat b、familiarity threat c、advocacy threat d、self-interest threat
6、in an effective system of corporate governance the directors take responsibility for risk management strategies within the business.