AA 무료 덤프문제 온라인 액세스

Frederich Gastona has been invited by ECA Co to perform the audit of financial statements of 2012-13. When deciding whether to accept an auditing engagement, Frederich must judge his independence and objectivity. If Frederich's audit firm lacks independence or objectivity, Frederich can't accept the engagement.
What does "Independence" mean in the context of the above case?

• A.Not being financially dependent on client ECA Co.
• B.Being an advocate for ECA Co in the law suit.
• C.Taking an unbiased viewpoint while conducting audit of ECA Co.
• D.Remaining aloof from client ECA Co.

Jones & Co is the external auditor of Blue plc, a listed company. The directors of Blue plc have requested that Jones & Co carry out a review engagement assessing the effectiveness of its corporate governance policies against the UK Corporate Governance Code.
For the above review engagement, select which part of the engagement description constitutes the subject matter?

• A.The directors of Blue plc
• B.Jones & Co
• C.The UK Corporate Governance Code
• D.Blue plc's corporate governance policies

Assurance providers obtain evidence using procedures set out in ISA 500.
Identify which type of audit procedures is / are correctly paired with each tests carried out by an auditor.
TestsAudit procedures (i)The assurance provider writes to a sample of customers asking them to inform him of the balance they owe theInspection company at the year end (ii)The assurance provider looks at a share certificate to confirm that the company has an investment in Company AObservation (iii)The assurance provider attends the inventory count and ensures that it is being carried out in accordance withConfirmation the issued instructions

• A.(i) and (ii) only
• B.(ii) and (iii) only
• C.All are incorrect
• D.All are correct

An auditor performs an analytical review by comparing the gross margins of various divisional operations with those of other divisions and with the individual division's performance in previous years. The auditor notes a significant increase in the gross margin at one division. The auditor does the preliminary investigation and notes that there were no changes in products, production methods, or divisional management during the year.
Based on the above information, the most likely cause of the increase in gross margin would be

• A.An overstatement of year-end inventory.
• B.An understatement of year-end accounts receivable.
• C.An increase in the number of competitors selling similar products.
• D.A decrease in the number of suppliers of the material used in manufacturing the product.

One category of fraud is fraudulent statements. This is usually in the form of falsication of nancial statements in order to obtain some form of improper benet. It also includes
falsifying documents such as employee credentials.
Which one of the following is correct about risk assessment procedures related to fraud by the external auditor?

• A.The auditor shall not evaluate any unusual or unexpected relationships that have been identified in performing analytical procedures which may indicate risks of material misstatement due to fraud.
• B.The auditor has no duty to identify fraud in the organisation, hence no inquiries are required.
• C.The auditor shall make inquiries of management, and others within the entity as appropriate, to determine whether they have knowledge of any actual, suspected or alleged fraud affecting the entity.
• D.The auditor shall make inquiries of top management only as appropriate, to determine whether they have knowledge of any actual, suspected or alleged fraud affecting the entity.