5. Gathering sufficient and appropriate evidence Flashcards
Which three of the following are assertions used by the auditor about classes of transactions?
a) Occurrence
b) Existence
c) Completeness
d) Cut-off
e) Rights and Obs
A, C &D
Existence and Rights and Obs would be used in respect of account balances at the period end, not class of transactions
Which two of the following describe manifestations of the expectations gap?
a) Users blaming the auditors for a fraud discovered in a company subsequent to an audit
b) Users discovering that the directors refused to cooperate with auditor
c) Shareholders approving the auditor
d) Users relying on the FS as a fair valuation of the company
a & d
Which two of the following describe manifestations of the expectations gap?
a) Users blaming the auditors for a fraud discovered in a company subsequent to an audit
b) Users discovering that the directors refused to cooperate with auditor
c) Shareholders approving the auditor
d) Users relying on the FS as a fair valuation of the company
a & d
Which two of the following could be key audit matters?
a) Areas of high audit risk
b) Areas in relation to which the auditor expresses a separate opinion
c) Areas of significant auditor judgement
d) Significant transactions or events
a & c
Key audit matters are the matters of most significance to the audit - the auditor does not express a separate opinion on any KEY audit matters. One single opinion is expressed on the FS as a whole, then communicates the key audit areas that relate to that opinion
Which two of the following would be included in an assurance report
a) Statement of directors’ responsibility
b) Identification of the criterea
c) Auditor’s opinion
d) Title
b & d
A & C are included in an auditor’s report
