Audit and Assurance
ST
2nd Edition
UV
TEST BANK
IA
?_
AP
Philomena Leung
Paul Coram
PR
Barry Cooper
Kirsty Redgen
Dominic Canestrari- Soh
OV
Comprehensive Test Bank for Instructors
ED
and Students
© Philomena Leung, Paul Coram, Barry Cooper, Kirsty Redgen & Dominic Canestrari- Soh.
??
All rights reserved. Reproduction or distribution without permission is prohibited.
©MEDCONNOISSEUR
, Test Bank for Audit and Assurance, 2nd Australian Edition
Authors: Philomena Leung, Paul Coram, Dominic Canestrari-Soh
ISBN-13: 9781394173457
ST
Chapter 1: Auditing and Governance
Chapter 2: Sustainability and Contemporary Assurance Engagements
Chapter 3: Financial Report Audits
UV
Chapter 4: Ethics and Client Evaluation
Chapter 5: Understanding the Client and Their Risk
Chapter 6: Planning the Audit in Response to Risk
Chapter 7: Testing Controls
Chapter 8: Gathering Substantive Evidence
IA
Chapter 9: Analytics in Substantive Procedures
Chapter 10: Completing the Audit
Chapter 11: Reporting on the Audit
?_
Chapter 12: Regulations and Audit Liability
AP
PR
OV
ED
??
©MEDCONNOISSEUR
, Testbank to accompany Auditing and assurance 2e
Chapter 1: Auditing and governance
Multiple-choice questions
ST
1. The three major professional accounting bodies in Australia are:
a. CAANZ, CPA and ASIC.
b. CPA Australia, IPA and AARF.
UV
c. ATO, AUASB and ASIC.
*d. CAANZ, CPA Australia and IPA.
The correct option is d.
Learning objective 1.1 ~ explain the fundamental nature and value of audits.
IA
2. Which of these was not an Australian corporate collapse?
a. Harris Scarfe.
?_
b. HIH Insurance Ltd.
c. One.Tel.
*d. All were Australian corporate collapses.
AP
The correct option is d.
Learning objective 1.1 ~ explain the fundamental nature and value of audits.
3. In relation to auditing the information hypothesis relates:
PR
a. To ‘does the audit meet the demands of users’.
*b. To why there is a demand for audits.
c. To what auditing is.
d. To which auditing standards are produced.
OV
The correct option is b.
Learning objective 1.1 ~ explain the fundamental nature and value of audits.
4. Under ASA 200/ IAS 200 the primary objective of a financial report audit is to:
ED
a. Ensure that the company is free from all fraud.
b. Provide assurance about the future viability of the entity.
*c. To express an opinion as to whether the financial report is prepared in all material
aspects, in accordance with a financial reporting framework.
??
d. Ensure the company complies with all aspects of Corporations Law.
The correct option is c.
Learning objective 1.1 ~ explain the fundamental nature and value of audits.
© John Wiley & Sons Australia, Ltd 2023 1.2
, Testbank to accompany Auditing and assurance 2e
5. It is not a requirement to be registered as an auditor in Australia to:
a. Be a fit and proper person.
b. Be a member of CPA Australia, CAANZ or other approved body.
c. Has a degree or diploma from a course in accounting (including auditing) of not less
ST
than 3 years duration and in commercial law (including company law) of not less
than 2 years duration or have other equivalent qualifications acceptable to ASIC.
*d. All are requirements to be registered as an auditor in Australia.
UV
The correct option is d.
Learning objective 1.1 ~ explain the fundamental nature and value of audits.
6. Investors shift financial responsibility for audited financial information to the auditor in
order to lower the expected loss from litigation or related settlements. This describes
IA
which theory of auditing?
a. Agency.
b. Explanatory.
?_
*c. Insurance hypothesis.
d. Information hypothesis.
The correct option is c.
Learning objective 1.1 ~ explain the fundamental nature and value of audits.
AP
7. In Australia, the auditor’s opinion in the audit report must state:
a. Whether the financial report is presented fairly, in all material respects, in
PR
accordance with the applicable financial reporting framework.
b. Whether the financial report presents a true and fair view, in all material respects, in
accordance with the applicable financial reporting framework.
c. Whether the financial report provides a reasonable level of assurance, in all material
respects, in accordance with the applicable financial reporting framework.
OV
*d. a or b.
The correct option is d.
Learning objective 1.1 ~ explain the fundamental nature and value of audits.
ED
8. In Australia, all of the following are required to have an annual audit, except:
a. Not-for-profit organisations.
b. Statutory authorities.
*c. Small proprietary companies.
??
d. All of the above are required to have an annual audit with no exceptions.
The correct option is c.
Learning objective 1.1 ~ explain the fundamental nature and value of audits.
© John Wiley & Sons Australia, Ltd 2023 1.3
ST
2nd Edition
UV
TEST BANK
IA
?_
AP
Philomena Leung
Paul Coram
PR
Barry Cooper
Kirsty Redgen
Dominic Canestrari- Soh
OV
Comprehensive Test Bank for Instructors
ED
and Students
© Philomena Leung, Paul Coram, Barry Cooper, Kirsty Redgen & Dominic Canestrari- Soh.
??
All rights reserved. Reproduction or distribution without permission is prohibited.
©MEDCONNOISSEUR
, Test Bank for Audit and Assurance, 2nd Australian Edition
Authors: Philomena Leung, Paul Coram, Dominic Canestrari-Soh
ISBN-13: 9781394173457
ST
Chapter 1: Auditing and Governance
Chapter 2: Sustainability and Contemporary Assurance Engagements
Chapter 3: Financial Report Audits
UV
Chapter 4: Ethics and Client Evaluation
Chapter 5: Understanding the Client and Their Risk
Chapter 6: Planning the Audit in Response to Risk
Chapter 7: Testing Controls
Chapter 8: Gathering Substantive Evidence
IA
Chapter 9: Analytics in Substantive Procedures
Chapter 10: Completing the Audit
Chapter 11: Reporting on the Audit
?_
Chapter 12: Regulations and Audit Liability
AP
PR
OV
ED
??
©MEDCONNOISSEUR
, Testbank to accompany Auditing and assurance 2e
Chapter 1: Auditing and governance
Multiple-choice questions
ST
1. The three major professional accounting bodies in Australia are:
a. CAANZ, CPA and ASIC.
b. CPA Australia, IPA and AARF.
UV
c. ATO, AUASB and ASIC.
*d. CAANZ, CPA Australia and IPA.
The correct option is d.
Learning objective 1.1 ~ explain the fundamental nature and value of audits.
IA
2. Which of these was not an Australian corporate collapse?
a. Harris Scarfe.
?_
b. HIH Insurance Ltd.
c. One.Tel.
*d. All were Australian corporate collapses.
AP
The correct option is d.
Learning objective 1.1 ~ explain the fundamental nature and value of audits.
3. In relation to auditing the information hypothesis relates:
PR
a. To ‘does the audit meet the demands of users’.
*b. To why there is a demand for audits.
c. To what auditing is.
d. To which auditing standards are produced.
OV
The correct option is b.
Learning objective 1.1 ~ explain the fundamental nature and value of audits.
4. Under ASA 200/ IAS 200 the primary objective of a financial report audit is to:
ED
a. Ensure that the company is free from all fraud.
b. Provide assurance about the future viability of the entity.
*c. To express an opinion as to whether the financial report is prepared in all material
aspects, in accordance with a financial reporting framework.
??
d. Ensure the company complies with all aspects of Corporations Law.
The correct option is c.
Learning objective 1.1 ~ explain the fundamental nature and value of audits.
© John Wiley & Sons Australia, Ltd 2023 1.2
, Testbank to accompany Auditing and assurance 2e
5. It is not a requirement to be registered as an auditor in Australia to:
a. Be a fit and proper person.
b. Be a member of CPA Australia, CAANZ or other approved body.
c. Has a degree or diploma from a course in accounting (including auditing) of not less
ST
than 3 years duration and in commercial law (including company law) of not less
than 2 years duration or have other equivalent qualifications acceptable to ASIC.
*d. All are requirements to be registered as an auditor in Australia.
UV
The correct option is d.
Learning objective 1.1 ~ explain the fundamental nature and value of audits.
6. Investors shift financial responsibility for audited financial information to the auditor in
order to lower the expected loss from litigation or related settlements. This describes
IA
which theory of auditing?
a. Agency.
b. Explanatory.
?_
*c. Insurance hypothesis.
d. Information hypothesis.
The correct option is c.
Learning objective 1.1 ~ explain the fundamental nature and value of audits.
AP
7. In Australia, the auditor’s opinion in the audit report must state:
a. Whether the financial report is presented fairly, in all material respects, in
PR
accordance with the applicable financial reporting framework.
b. Whether the financial report presents a true and fair view, in all material respects, in
accordance with the applicable financial reporting framework.
c. Whether the financial report provides a reasonable level of assurance, in all material
respects, in accordance with the applicable financial reporting framework.
OV
*d. a or b.
The correct option is d.
Learning objective 1.1 ~ explain the fundamental nature and value of audits.
ED
8. In Australia, all of the following are required to have an annual audit, except:
a. Not-for-profit organisations.
b. Statutory authorities.
*c. Small proprietary companies.
??
d. All of the above are required to have an annual audit with no exceptions.
The correct option is c.
Learning objective 1.1 ~ explain the fundamental nature and value of audits.
© John Wiley & Sons Australia, Ltd 2023 1.3
