Test Bank for Audit and Assurance, 2nd Australian Edition
Author:Philomena Leung, Paul Coram, Barry Cooper, Kirsty
Redgen, Dominic Canestrari-Soh |ISBN:9781394173457| All
Chapters 1-12 Covered| LATEST VERSION
FULL TEST BANK!!!
1|Page
,Testbank to accompany Auditing and assurance
2e
Chapter 1: Auditing and governance
Multiple-choice questions
1. The three major professional accounting bodies in Australia are:
a. CAANZ, CPA and ASIC.
b. CPA Australia, IPA and AARF.
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.
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.
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:
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.
The Correct Option is b.
© John Wiley & Sons Australia, Ltd 1.2
2023
,Testbank to accompany Auditing and assurance
Learning objective 1.1 ~ explain the fundamental nature and value of audits.
2e
4. Under ASA 200/ IAS 200 the primary objective of a financial report audit is to:
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 1.3
2023
, 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
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.
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 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.
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
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.
© John Wiley & Sons Australia, Ltd 1.4
2023
Author:Philomena Leung, Paul Coram, Barry Cooper, Kirsty
Redgen, Dominic Canestrari-Soh |ISBN:9781394173457| All
Chapters 1-12 Covered| LATEST VERSION
FULL TEST BANK!!!
1|Page
,Testbank to accompany Auditing and assurance
2e
Chapter 1: Auditing and governance
Multiple-choice questions
1. The three major professional accounting bodies in Australia are:
a. CAANZ, CPA and ASIC.
b. CPA Australia, IPA and AARF.
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.
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.
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:
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.
The Correct Option is b.
© John Wiley & Sons Australia, Ltd 1.2
2023
,Testbank to accompany Auditing and assurance
Learning objective 1.1 ~ explain the fundamental nature and value of audits.
2e
4. Under ASA 200/ IAS 200 the primary objective of a financial report audit is to:
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 1.3
2023
, 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
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.
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 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.
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
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.
© John Wiley & Sons Australia, Ltd 1.4
2023
