Test Bank
Audit And Assurance,
By Philomena Leung, Paul Coram
2nd Edition
,Table Of Content
1. Auditing And Governance
2. Sustainability And Contemporary Assurance Engagements
3. Financial Report Audits
4. Ethics And Client Evaluation
5. Understanding The Client And Their Risk
6. Planning The Audit In Response To Risk
7. Testing Controls
8. Gathering Substantive Evidence
9. Analytics In Substantive Procedures
10. Completing The Audit
11. Reporting On The Audit
12. Regulations And Audit Liability
,Chapter 1: An Overview Of Auditing
Multiple-Choice Questions
1. The Three Major Professional Accounting Bodies In Australia Are:
a. Icaa, Cpa And Asic.
b. Cpa Australia, Ipa And Aarf.
c. Ato, Auasb And Asic.
d. Icaa, Cpa Australia And Ipa.
The Correct Option is D.
Learning Objective 1.1 ~ Explain What An Audit Is, What It Provides, And Why It Is
Demanded.
2. Which Of These Is Not An Objective Of The Asic?
a. To Maintain, Facilitate And Improve The Performance Of Companies.
b. To Establish New Institutional Arrangements For Standard Setting.
c. To Receive, Process And Store Information Given To The
Commission Under The Laws.
d. All Of The Above Are Objectives Of The Asic.
The Correct Option is B.
Learning Objective 1.1 ~ Explain What An Audit Is, What It Provides, And Why It Is
Demanded.
3. Which Of The Following Is True Regarding Auditors And Fraud?
a. Auditors Are Required To Detect All Fraud During An Audit.
b. Auditors Should Actively Investigate The Possibility Of Fraud If
Suspicious Circumstances Exist.
c. In The Kingston Cotton Mill Case It Was Said That The Audit Role Was
Not Primarily To Detect Fraud.
d. B. And C. Are True.
The Correct Option is D.
Learning Objective 1.1 ~ Explain What An Audit Is, What It Provides, And Why It Is
Demanded.
, 4. Which Zof Zthese Zwas Znot Zan Zaustralian Zcorporate Zcollapse? Z
a. Harris Zscarfe. Z
b. Hih Zinsurance Zltd. Z
c. One.Tel. Z
d. All Zwere Zaustralian Zcorporate Zcollapses. Z
The Zcorrect Zoption Zis Zd.
Section Z1.1 Zauditing Zfundamentals
5. Abc Zfirm Zare Zthe Zauditors Zof Zxyz Zcompany. Zthe Zpartner Zresponsible Zfor Zthe
Zaudit Zhas Zrecently Zspent Za Zweek Zworking Zwith Zxyz Zas Za Zpaid Zconsultant Zon
Ztheir Zinternal Zcontrol Zsystems. Zthe Zethical Zprinciple Zthat Zhas Zbeen Zbreached
Zis: Z
a. Auditor Zcompetence. Z
b. Auditor Zrotation. Z
c. Auditor Zindependence. Z
d. Auditor Zappointment. Z
The Zcorrect Zoption Zis Zc.
Learning Zobjective Z1.1 Z~ Zexplain Zwhat Zan Zaudit Zis, Zwhat Zit Zprovides, Zand
Zwhy Zit Zis Zdemanded.
6. Which Zof Zthese Zis Znot Za Zreform Zintroduced Zby Zclerp Z9 Zin Zrelation Zto
Zauditors Zand Zannual Zgeneral Zmeetings Z(Agms)? Z
a. Shareholders Zcan Zsubmit Zwritten Zquestions Zto Zthe Zauditor Zbefore Zthe
Zagm Zrelating Zto Zthe Zauditor’s Zreport Zand Zthe Zconduct Zof Zthe Zaudit. Z
b. The Zauditor Zmust Zattend Zthe Zagm. Z
c. The Zauditor Zmust Zaddress Zthe Zagm. Z
d. A Zreasonable Zopportunity Zmust Zbe Zallowed Zfor Zmembers Zas Za Zwhole
Zto Zask Zquestions Zof Zthe Zauditor Zand Zfor Zthe Zauditor Zto Zrespond. Z
The Zcorrect Zoption Zis Zc.
Learning Zobjective Z1.1 Z~ Zexplain Zwhat Zan Zaudit Zis, Zwhat Zit Zprovides, Zand
Zwhy Zit Zis Zdemanded.
Audit And Assurance,
By Philomena Leung, Paul Coram
2nd Edition
,Table Of Content
1. Auditing And Governance
2. Sustainability And Contemporary Assurance Engagements
3. Financial Report Audits
4. Ethics And Client Evaluation
5. Understanding The Client And Their Risk
6. Planning The Audit In Response To Risk
7. Testing Controls
8. Gathering Substantive Evidence
9. Analytics In Substantive Procedures
10. Completing The Audit
11. Reporting On The Audit
12. Regulations And Audit Liability
,Chapter 1: An Overview Of Auditing
Multiple-Choice Questions
1. The Three Major Professional Accounting Bodies In Australia Are:
a. Icaa, Cpa And Asic.
b. Cpa Australia, Ipa And Aarf.
c. Ato, Auasb And Asic.
d. Icaa, Cpa Australia And Ipa.
The Correct Option is D.
Learning Objective 1.1 ~ Explain What An Audit Is, What It Provides, And Why It Is
Demanded.
2. Which Of These Is Not An Objective Of The Asic?
a. To Maintain, Facilitate And Improve The Performance Of Companies.
b. To Establish New Institutional Arrangements For Standard Setting.
c. To Receive, Process And Store Information Given To The
Commission Under The Laws.
d. All Of The Above Are Objectives Of The Asic.
The Correct Option is B.
Learning Objective 1.1 ~ Explain What An Audit Is, What It Provides, And Why It Is
Demanded.
3. Which Of The Following Is True Regarding Auditors And Fraud?
a. Auditors Are Required To Detect All Fraud During An Audit.
b. Auditors Should Actively Investigate The Possibility Of Fraud If
Suspicious Circumstances Exist.
c. In The Kingston Cotton Mill Case It Was Said That The Audit Role Was
Not Primarily To Detect Fraud.
d. B. And C. Are True.
The Correct Option is D.
Learning Objective 1.1 ~ Explain What An Audit Is, What It Provides, And Why It Is
Demanded.
, 4. Which Zof Zthese Zwas Znot Zan Zaustralian Zcorporate Zcollapse? Z
a. Harris Zscarfe. Z
b. Hih Zinsurance Zltd. Z
c. One.Tel. Z
d. All Zwere Zaustralian Zcorporate Zcollapses. Z
The Zcorrect Zoption Zis Zd.
Section Z1.1 Zauditing Zfundamentals
5. Abc Zfirm Zare Zthe Zauditors Zof Zxyz Zcompany. Zthe Zpartner Zresponsible Zfor Zthe
Zaudit Zhas Zrecently Zspent Za Zweek Zworking Zwith Zxyz Zas Za Zpaid Zconsultant Zon
Ztheir Zinternal Zcontrol Zsystems. Zthe Zethical Zprinciple Zthat Zhas Zbeen Zbreached
Zis: Z
a. Auditor Zcompetence. Z
b. Auditor Zrotation. Z
c. Auditor Zindependence. Z
d. Auditor Zappointment. Z
The Zcorrect Zoption Zis Zc.
Learning Zobjective Z1.1 Z~ Zexplain Zwhat Zan Zaudit Zis, Zwhat Zit Zprovides, Zand
Zwhy Zit Zis Zdemanded.
6. Which Zof Zthese Zis Znot Za Zreform Zintroduced Zby Zclerp Z9 Zin Zrelation Zto
Zauditors Zand Zannual Zgeneral Zmeetings Z(Agms)? Z
a. Shareholders Zcan Zsubmit Zwritten Zquestions Zto Zthe Zauditor Zbefore Zthe
Zagm Zrelating Zto Zthe Zauditor’s Zreport Zand Zthe Zconduct Zof Zthe Zaudit. Z
b. The Zauditor Zmust Zattend Zthe Zagm. Z
c. The Zauditor Zmust Zaddress Zthe Zagm. Z
d. A Zreasonable Zopportunity Zmust Zbe Zallowed Zfor Zmembers Zas Za Zwhole
Zto Zask Zquestions Zof Zthe Zauditor Zand Zfor Zthe Zauditor Zto Zrespond. Z
The Zcorrect Zoption Zis Zc.
Learning Zobjective Z1.1 Z~ Zexplain Zwhat Zan Zaudit Zis, Zwhat Zit Zprovides, Zand
Zwhy Zit Zis Zdemanded.
