A2

Question 1

What are the 6 elements of Quality control?

Answer 1

1. Human resources
2. Engagement/client acceptance and continuance
3. Leadership responsibilities
4. Performance of the engagement
5. Monitoring
6. Ethical Requirements

Question 2

How do you calculate overall materiality?

Answer 2

Applicable Benchmark * Applicable Percentage

Question 3

How do you calculate Performance Materiality?

Answer 3

Overall Materiality * Applicable benchmark

Question 4

Define the Quality Control standard

Answer 4

Professional development policies and procedures should be established by the firm

Question 5

What is the document that documents the procedures that are applied and the conclusions reached in an audit engagement?

Answer 5

Working papers

Question 6

If there is a decrease in amount of misstatement that an auditor can tolerate, what procedures would an auditor perform?

Answer 6

Modify the Nature, extent, timing of auditing procedures aka perform procedures closer to BS date

Question 7

Define General controls

Answer 7

Policies and procedures that relate to applications and support the effective functioning operation

Ex - procedures to ensure appropriate systems software acquisition

Question 8

What information does Test data often contain?

Answer 8

invalid information (i.e. invalid job numbers) that is used to test EDP controls