AUD 3

Question 1

What should a CPA get prior to accepting an engagement?

Answer 1

Consent to review the predecessor auditor’s working papers. The CPA should ask questions of management’s integrity, disagreements with management, and why their was a change in auditor.

Question 2

Objectivity is reflected by?

Answer 2

The organizational level to which the internal auditor reports as well as by policies prohibiting audits of areas where the internal auditor lacks independence.

Question 3

Internal audit may assist in?

Answer 3

Obtaining an understanding of internal control, performing tests of control and performing substantive tests.

Question 4

The auditor should not refer to the specialist unless…

Answer 4

The work of the specialist changes the auditors report.

Question 5

The rep letter is obtained when?

Answer 5

At the end of the audit.

Question 6

Is the operating efficiency of a control important to the auditor?

Answer 6

No.