Question 1

The primary role of the Auditor-General is the enforcement of the federal tax laws as defined by Parliament and interpreted by the courts.

Accepted Answer

A) True 
 B)False

Question 2

An examination of part of an organisation's procedures and methods for the purpose of evaluating efficiency and effectiveness in the manufacturing department is what type of audit?

Accepted Answer

A)  compliance audit 
B)  financial statement audit 
C)  performance audit 
D)  production audit 
A)  compliance audit 
B)  financial statement audit 
C)  performance audit 
D)  production audit

Question 3

An attestation service is a type of assurance service in which the public accounting firm issues a written communication that expresses a conclusion about the reliability of a written assertion of another party.

Accepted Answer

A) True 
 B)False

Question 4

Publicly traded companies have annual financial statement audits:

Accepted Answer

A)  because external users rely on it. 
B)  because they are required to under the Corporations Act. 
C)  to obtain financing from banks. 
D)  all of the above 
A)  because external users rely on it. 
B)  because they are required to under the Corporations Act. 
C)  to obtain financing from banks. 
D)  all of the above

Question 5

Discuss the various categories of services provided by public accounting firms.

Accepted Answer

There are six categories of services pro

Question 6

Review and approval of audit programs by the engagement partner is a characteristic of which of the six objectives of quality control?

Accepted Answer

A)  professional development 
B)  leadership responsibilities 
C)  engagement performance 
D)  monitoring 
A)  professional development 
B)  leadership responsibilities 
C)  engagement performance 
D)  monitoring

Question 7

Explain what is meant by information risk, and discuss the four causes of this risk.

Accepted Answer

Information risk is the possibility that

Question 8

One consequence of CPA Australia's Quality Assurance Program is likely to be:

Accepted Answer

A)  a reduction in management consulting services provided by public accounting firms. 
B)  a provision of information to practitioners that can enhance service quality. 
C)  a reluctance by public accounting firms to take on higher risk audit clients. 
D)  an increase in disciplinary actions taken. 
A)  a reduction in management consulting services provided by public accounting firms. 
B)  a provision of information to practitioners that can enhance service quality. 
C)  a reluctance by public accounting firms to take on higher risk audit clients. 
D)  an increase in disciplinary actions taken.

Question 9

Providing quantitative information that management and others can use to make decisions is the function of:

Accepted Answer

A)  auditing. 
B)  accounting. 
C)  finance. 
D)  management information systems. 
A)  auditing. 
B)  accounting. 
C)  finance. 
D)  management information systems.

Question 10

Which one of the following was NOT an objective of the Institute's Quality Review Program?

Accepted Answer

A)  reduced need for costly peer reviews 
B)  increased returns to accounting firms 
C)  enhanced client service 
D)  risk reduction 
A)  reduced need for costly peer reviews 
B)  increased returns to accounting firms 
C)  enhanced client service 
D)  risk reduction

Question 11

Completion of Client Evaluation forms is an example of the quality control objective of Ethical Requirements.

Accepted Answer

A) True 
 B)False

Question 12

Discuss the similarities and differences between financial statement audits, performance (operational)audits, and compliance audits.Give an example of each type.

Accepted Answer

Financial statement audits, performance

Question 13

A strategic system audit approach assists the auditor to:

Accepted Answer

A)  identify risks associated with the financial statements. 
B)  evaluate audit evidence. 
C)  determine which areas of the audit to focus on. 
D)  all of the above 
A)  identify risks associated with the financial statements. 
B)  evaluate audit evidence. 
C)  determine which areas of the audit to focus on. 
D)  all of the above

Question 14

Which of the following is NOT a category of auditing standards?

Accepted Answer

A)  audit conclusions and reporting 
B)  risk assessment and response to assessed risks 
C)  ethical requirements 
D)  general principles and responsibilities 
A)  audit conclusions and reporting 
B)  risk assessment and response to assessed risks 
C)  ethical requirements 
D)  general principles and responsibilities

Question 15

Privately held companies have annual financial statement audits:

Accepted Answer

A)  to obtain financing from banks. 
B)  because external users rely on it. 
C)  because they are required to under the Corporations Act. 
D)  all of the above 
A)  to obtain financing from banks. 
B)  because external users rely on it. 
C)  because they are required to under the Corporations Act. 
D)  all of the above

Question 16

Which of the following can be regarded as being solely 'compliance' audits?

Accepted Answer

A)  Auditor-General's examinations of the returns of taxpayers 
B)  determining if bank requirements for loan continuation have been met 
C)  an internal auditor's review of his employer's noncurrent asset purchases 
D)  evaluating whether a computerised payroll system is operating effectively 
A)  Auditor-General's examinations of the returns of taxpayers 
B)  determining if bank requirements for loan continuation have been met 
C)  an internal auditor's review of his employer's noncurrent asset purchases 
D)  evaluating whether a computerised payroll system is operating effectively

Question 17

Which one of the following is NOT required in order to become a registered company auditor with ASIC?

Accepted Answer

A)  membership of ICAA, CPA Australia, or another prescribed body 
B)  sufficient practical experience 
C)  satisfying the Commission that the applicant is a fit and proper person to be so registered 
D)  evidence that adequate professional indemnity insurance is held 
A)  membership of ICAA, CPA Australia, or another prescribed body 
B)  sufficient practical experience 
C)  satisfying the Commission that the applicant is a fit and proper person to be so registered 
D)  evidence that adequate professional indemnity insurance is held

Question 18

Which one of the following is NOT a means of reducing information risk?

Accepted Answer

A)  providing audited financial statements 
B)  independent verification by the user 
C)  implementing a system of quality control 
D)  sharing the risk with management 
A)  providing audited financial statements 
B)  independent verification by the user 
C)  implementing a system of quality control 
D)  sharing the risk with management

Question 19

An auditor could determine how many items need to be selected from the population for a particular audit test by consulting:

Accepted Answer

A)  ASA 500. 
B)  ASA 530. 
C)  ASA 300. 
D)  none of the above 
A)  ASA 500. 
B)  ASA 530. 
C)  ASA 300. 
D)  none of the above

Question 20

Information risk increases as business organisations become larger.

Accepted Answer

A) True 
 B)False

The primary role of the Auditor-General is the enforcement of the federal tax laws as defined by Parliament and interpreted by the courts.

An examination of part of an organisation's procedures and methods for the purpose of evaluating efficiency and effectiveness in the manufacturing department is what type of audit?

An attestation service is a type of assurance service in which the public accounting firm issues a written communication that expresses a conclusion about the reliability of a written assertion of another party.

Publicly traded companies have annual financial statement audits:

Discuss the various categories of services provided by public accounting firms.

Review and approval of audit programs by the engagement partner is a characteristic of which of the six objectives of quality control?

Explain what is meant by information risk, and discuss the four causes of this risk.

One consequence of CPA Australia's Quality Assurance Program is likely to be:

Providing quantitative information that management and others can use to make decisions is the function of:

Which one of the following was NOT an objective of the Institute's Quality Review Program?

Completion of Client Evaluation forms is an example of the quality control objective of Ethical Requirements.

Discuss the similarities and differences between financial statement audits, performance (operational)audits, and compliance audits.Give an example of each type.

A strategic system audit approach assists the auditor to:

Which of the following is NOT a category of auditing standards?

Privately held companies have annual financial statement audits:

Which of the following can be regarded as being solely 'compliance' audits?

Which one of the following is NOT required in order to become a registered company auditor with ASIC?

Which one of the following is NOT a means of reducing information risk?

An auditor could determine how many items need to be selected from the population for a particular audit test by consulting:

Information risk increases as business organisations become larger.

Auditors’ legal environment

Audit quality and ethics

Audit responsibilities and objectives

Audit evidence

Audit planning and documentation

Materiality and risk

Internal control and control risk

Fraud auditing

The impact of information technology on the audit process

Overall audit plan and audit program

Audit of the sales and collection cycle: Tests of controls and substantive tests of transactions

Completing tests in the sales and collection cycle: Accounts receivable

Audit sampling

Audit of transaction cycles and financial statement balances I

Audit of transaction cycles and financial statement balances II

Completing the audit

Audit reporting

Other auditing and assurance engagements

Filters

Exam 1: Demand for audit and assurance services

The primary role of the Auditor-General is the enforcement of the federal tax laws as defined by Parliament and interpreted by the courts.

An examination of part of an organisation's procedures and methods for the purpose of evaluating efficiency and effectiveness in the manufacturing department is what type of audit?

An attestation service is a type of assurance service in which the public accounting firm issues a written communication that expresses a conclusion about the reliability of a written assertion of another party.

Publicly traded companies have annual financial statement audits:

Discuss the various categories of services provided by public accounting firms.

Review and approval of audit programs by the engagement partner is a characteristic of which of the six objectives of quality control?

Explain what is meant by information risk, and discuss the four causes of this risk.

One consequence of CPA Australia's Quality Assurance Program is likely to be:

Providing quantitative information that management and others can use to make decisions is the function of:

Which one of the following was NOT an objective of the Institute's Quality Review Program?

Completion of Client Evaluation forms is an example of the quality control objective of Ethical Requirements.

Discuss the similarities and differences between financial statement audits, performance (operational)audits, and compliance audits.Give an example of each type.

A strategic system audit approach assists the auditor to:

Which of the following is NOT a category of auditing standards?

Privately held companies have annual financial statement audits:

Which of the following can be regarded as being solely 'compliance' audits?

Which one of the following is NOT required in order to become a registered company auditor with ASIC?

Which one of the following is NOT a means of reducing information risk?

An auditor could determine how many items need to be selected from the population for a particular audit test by consulting:

Information risk increases as business organisations become larger.

Auditors’ legal environment

Audit quality and ethics

Audit responsibilities and objectives

Audit evidence

Audit planning and documentation

Materiality and risk

Internal control and control risk

Fraud auditing

The impact of information technology on the audit process

Overall audit plan and audit program

Audit of the sales and collection cycle: Tests of controls and substantive tests of transactions

Completing tests in the sales and collection cycle: Accounts receivable

Audit sampling

Audit of transaction cycles and financial statement balances I

Audit of transaction cycles and financial statement balances II

Completing the audit

Audit reporting

Other auditing and assurance engagements

Filters