Test Bank
Modern Auditing And Assurance Services,
By Leung Coram
6th Edition
,Table Of Contents
Part 1 The Auditing And Assurance Environment
1 An Overview Of Auditing
2 Governance And The Auditor
3 Professional Ethics, Independence And Audit Quality
4 Other Assurance Engagements And Quality Standards
5 The Auditor’s Legal Liability
Part 2 Audit Planning
6 Overview Of The Audit Of Financial Reports
7 The Auditor’s Report
8 Client Evaluation And Planning The Audit
9 Audit Risk Assessment
10 Materiality And Audit Evidence
Part 3 Audit Testing Methodology
11 Tests Of Controls
12 Designing Substantive Procedures
13 Audit Sampling
Part 4 Auditing Transactions And Balances
14 Auditing Sales And Receivables
15 Auditing Purchases, Payables And Payroll
16 Auditing Inventories And Property, Plant And Equipment
17 Auditing Cash And Investments
Part 5 Completing The Audit
18 Completing The Audit
,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.
Answer: 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.
Answer: 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.
Answer: D.
Learning Objective 1.1 ~ Explain What An Audit Is, What It Provides, And Why It Is Demanded.
4. 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.
Answer: D.
Section 1.1 Auditing Fundamentals
5. Abc Firm Are The Auditors Of Xyz Company. The Partner Responsible For The Audit Has Recently
Spent A Week Working With Xyz As A Paid Consultant On Their Internal Control Systems. The Ethical
Principle That Has Been Breached Is:
A. Auditor Competence.
B. Auditor Rotation.
C. Auditor Independence.
D. Auditor Appointment.
Answer: C.
Learning Objective 1.1 ~ Explain What An Audit Is, What It Provides, And Why It Is Demanded.
Modern Auditing And Assurance Services,
By Leung Coram
6th Edition
,Table Of Contents
Part 1 The Auditing And Assurance Environment
1 An Overview Of Auditing
2 Governance And The Auditor
3 Professional Ethics, Independence And Audit Quality
4 Other Assurance Engagements And Quality Standards
5 The Auditor’s Legal Liability
Part 2 Audit Planning
6 Overview Of The Audit Of Financial Reports
7 The Auditor’s Report
8 Client Evaluation And Planning The Audit
9 Audit Risk Assessment
10 Materiality And Audit Evidence
Part 3 Audit Testing Methodology
11 Tests Of Controls
12 Designing Substantive Procedures
13 Audit Sampling
Part 4 Auditing Transactions And Balances
14 Auditing Sales And Receivables
15 Auditing Purchases, Payables And Payroll
16 Auditing Inventories And Property, Plant And Equipment
17 Auditing Cash And Investments
Part 5 Completing The Audit
18 Completing The Audit
,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.
Answer: 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.
Answer: 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.
Answer: D.
Learning Objective 1.1 ~ Explain What An Audit Is, What It Provides, And Why It Is Demanded.
4. 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.
Answer: D.
Section 1.1 Auditing Fundamentals
5. Abc Firm Are The Auditors Of Xyz Company. The Partner Responsible For The Audit Has Recently
Spent A Week Working With Xyz As A Paid Consultant On Their Internal Control Systems. The Ethical
Principle That Has Been Breached Is:
A. Auditor Competence.
B. Auditor Rotation.
C. Auditor Independence.
D. Auditor Appointment.
Answer: C.
Learning Objective 1.1 ~ Explain What An Audit Is, What It Provides, And Why It Is Demanded.
