Question 1

A financial statement review emphasises four broad areas.State the four areas which are emphasised.

Accepted Answer

.Obtain knowledge of the accounting prin

Question 2

The key issues for an external auditor evaluating a client's internal audit function are the:

Accepted Answer

A)  competence and professionalism of internal audit staff. 
B)  timing and scope of the internal audit's work. 
C)  size of the internal audit function and its reporting independence. 
D)  quality of internal audit work and the independence of the internal audit function. 
A)  competence and professionalism of internal audit staff. 
B)  timing and scope of the internal audit's work. 
C)  size of the internal audit function and its reporting independence. 
D)  quality of internal audit work and the independence of the internal audit function.

Question 3

When the auditor is engaged to report on the internal controls, five steps similar to those for a regular audit engagement are followed.Describe them.

Accepted Answer

1.Plan the engagement.The auditor, entit

Question 4

Current professional auditing standards prohibit external auditors from using internal auditors for direct assistance on external audits.

Accepted Answer

A) True 
 B)False

Question 5

The Commonwealth Auditor-General is appointed by the Prime Minister on the advice of the Governor-General.

Accepted Answer

A) True 
 B)False

Question 6

Which one of the following meets the definition of an examination?

Accepted Answer

A)  a compilation of the financial statements 
B)  an audit of the financial statements 
C)  a review of the financial statements 
D)  preparing the annual tax returns 
A)  a compilation of the financial statements 
B)  an audit of the financial statements 
C)  a review of the financial statements 
D)  preparing the annual tax returns

Question 7

An audit designed to evaluate the efficiency and effectiveness of an organisation or some part thereof would NOT come under the title of:

Accepted Answer

A)  compliance audit. 
B)  operational audit. 
C)  management audit. 
D)  performance audit. 
A)  compliance audit. 
B)  operational audit. 
C)  management audit. 
D)  performance audit.

Question 8

To whom does the Commonwealth Auditor-General directly report?

Accepted Answer

A)  Parliament 
B)  the Governor-General 
C)  the head of the agency subject to audit 
D)  the public 
A)  Parliament 
B)  the Governor-General 
C)  the head of the agency subject to audit 
D)  the public

Question 9

To help them remain independent of the operations they audit, internal auditors should report directly to the chairman or the board of directors.

Accepted Answer

A) True 
 B)False

Question 10

The objectives of internal auditors are similar to the objectives of external auditors.

Accepted Answer

A) True 
 B)False

Question 11

When making a review of interim financial information, the auditor's work consists primarily of:

Accepted Answer

A)  confirming and verifying account balances at the interim date. 
B)  making inquiries and performing analytical procedures concerning significant accounting matters. 
C)  studying and evaluating limited amounts of documentation supporting the interim financial information. 
D)  scanning and reviewing client-prepared, internal financial statements. 
A)  confirming and verifying account balances at the interim date. 
B)  making inquiries and performing analytical procedures concerning significant accounting matters. 
C)  studying and evaluating limited amounts of documentation supporting the interim financial information. 
D)  scanning and reviewing client-prepared, internal financial statements.

Question 12

Audits under the National Greenhouse and Energy Reporting Act 2007 would be considered ________ audits.

Accepted Answer

A)  compliance and performance 
B)  compliance 
C)  performance 
D)  financial 
A)  compliance and performance 
B)  compliance 
C)  performance 
D)  financial

Question 13

Effectiveness is concerned with whether defined goals are achieved, whereas efficiency is concerned with whether the goals are achieved with a minimum use of resources.

Accepted Answer

A) True 
 B)False

Question 14

Three main areas for which mandates exist for State and Federal Auditors-General are financial statements audits, compliance audits, and performance audits.

Accepted Answer

A) True 
 B)False

Question 15

Which one of the following is NOT one of the three phases in a performance audit?

Accepted Answer

A)  planning 
B)  training and supervising employees 
C)  evidence accumulation and evaluation 
D)  reporting and follow-up 
A)  planning 
B)  training and supervising employees 
C)  evidence accumulation and evaluation 
D)  reporting and follow-up

Question 16

When the auditor is engaged to report on the internal controls:

Accepted Answer

A)  only those areas that the auditor has time to report on will be included in the study. 
B)  all areas of the structure will be included in the study. 
C)  all areas of the structure will be included in the study unless specifically excluded by agreement. 
D)  only those areas where control risk is low will be included in the study. 
A)  only those areas that the auditor has time to report on will be included in the study. 
B)  all areas of the structure will be included in the study. 
C)  all areas of the structure will be included in the study unless specifically excluded by agreement. 
D)  only those areas where control risk is low will be included in the study.

Question 17

Which one of the following statements is NOT correct?

Accepted Answer

A)  Internal auditors should be independent of the activities they audit. 
B)  Objectivity requires that internal auditors have an independent mental attitude. 
C)  The internal auditor should not be responsible for correcting deficiencies when ineffective or inefficient operations are found. 
D)  It is acceptable for internal auditors to recommend changes in operations and to install and implement the operating systems, as long as they do not have the responsibility for operating them throughout the year. 
A)  Internal auditors should be independent of the activities they audit. 
B)  Objectivity requires that internal auditors have an independent mental attitude. 
C)  The internal auditor should not be responsible for correcting deficiencies when ineffective or inefficient operations are found. 
D)  It is acceptable for internal auditors to recommend changes in operations and to install and implement the operating systems, as long as they do not have the responsibility for operating them throughout the year.

Question 18

Which one of the following is NOT an additional reporting standard required of Australian National Audit Office (ANAO)auditors?

Accepted Answer

A)  timeliness 
B)  compliance 
C)  content 
D)  form 
A)  timeliness 
B)  compliance 
C)  content 
D)  form

Question 19

Which of the following appoints the Commonwealth Auditor-General?

Accepted Answer

A)  the federal government 
B)  the Governor-General 
C)  the Queen 
D)  the Prime Minister 
A)  the federal government 
B)  the Governor-General 
C)  the Queen 
D)  the Prime Minister

Question 20

An auditor may be asked to report on the client's internal controls.Which one of the following is NOT a reason why the auditor would be asked to prepare this?

Accepted Answer

A)  It is part of the financial report audit. 
B)  It is required by contractual obligation on the client. 
C)  It is required by regulatory obligation on the client. 
D)  It is required by statutory obligation on the client. 
A)  It is part of the financial report audit. 
B)  It is required by contractual obligation on the client. 
C)  It is required by regulatory obligation on the client. 
D)  It is required by statutory obligation on the client.

A financial statement review emphasises four broad areas.State the four areas which are emphasised.

The key issues for an external auditor evaluating a client's internal audit function are the:

When the auditor is engaged to report on the internal controls, five steps similar to those for a regular audit engagement are followed.Describe them.

Current professional auditing standards prohibit external auditors from using internal auditors for direct assistance on external audits.

The Commonwealth Auditor-General is appointed by the Prime Minister on the advice of the Governor-General.

Which one of the following meets the definition of an examination?

An audit designed to evaluate the efficiency and effectiveness of an organisation or some part thereof would NOT come under the title of:

To whom does the Commonwealth Auditor-General directly report?

To help them remain independent of the operations they audit, internal auditors should report directly to the chairman or the board of directors.

The objectives of internal auditors are similar to the objectives of external auditors.

When making a review of interim financial information, the auditor's work consists primarily of:

Audits under the National Greenhouse and Energy Reporting Act 2007 would be considered ________ audits.

Effectiveness is concerned with whether defined goals are achieved, whereas efficiency is concerned with whether the goals are achieved with a minimum use of resources.

Three main areas for which mandates exist for State and Federal Auditors-General are financial statements audits, compliance audits, and performance audits.

Which one of the following is NOT one of the three phases in a performance audit?

When the auditor is engaged to report on the internal controls:

Which one of the following statements is NOT correct?

Which one of the following is NOT an additional reporting standard required of Australian National Audit Office (ANAO)auditors?

Which of the following appoints the Commonwealth Auditor-General?

An auditor may be asked to report on the client's internal controls.Which one of the following is NOT a reason why the auditor would be asked to prepare this?

Demand for audit and assurance services

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

Filters

Exam 19: Other auditing and assurance engagements

A financial statement review emphasises four broad areas.State the four areas which are emphasised.

The key issues for an external auditor evaluating a client's internal audit function are the:

When the auditor is engaged to report on the internal controls, five steps similar to those for a regular audit engagement are followed.Describe them.

Current professional auditing standards prohibit external auditors from using internal auditors for direct assistance on external audits.

The Commonwealth Auditor-General is appointed by the Prime Minister on the advice of the Governor-General.

Which one of the following meets the definition of an examination?

An audit designed to evaluate the efficiency and effectiveness of an organisation or some part thereof would NOT come under the title of:

To whom does the Commonwealth Auditor-General directly report?

To help them remain independent of the operations they audit, internal auditors should report directly to the chairman or the board of directors.

The objectives of internal auditors are similar to the objectives of external auditors.

When making a review of interim financial information, the auditor's work consists primarily of:

Audits under the National Greenhouse and Energy Reporting Act 2007 would be considered ________ audits.

Effectiveness is concerned with whether defined goals are achieved, whereas efficiency is concerned with whether the goals are achieved with a minimum use of resources.

Three main areas for which mandates exist for State and Federal Auditors-General are financial statements audits, compliance audits, and performance audits.

Which one of the following is NOT one of the three phases in a performance audit?

When the auditor is engaged to report on the internal controls:

Which one of the following statements is NOT correct?

Which one of the following is NOT an additional reporting standard required of Australian National Audit Office (ANAO)auditors?

Which of the following appoints the Commonwealth Auditor-General?

An auditor may be asked to report on the client's internal controls.Which one of the following is NOT a reason why the auditor would be asked to prepare this?

Demand for audit and assurance services

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

Filters