CAS

Question 1

CAS 320

Answer 1

Responsibility of the auditor to decide on materiality in an F/S audit

Question 2

what is materiality determined by in CAS 320

Answer 2

determined by the assumptions that:
- users of F/S have reasonable knowledge of business
- users understand F/S are prepared in materiality
- users recognize the uncertainty in measurements such as estimates
- users make reasonable economic decisions based on F/S

Question 3

CAS 300

Answer 3

Deals with auditors’ responsibility to plan an audit
- obtain knowledge on auditee’s business
- deal with differences in opinion among firm personel

Question 4

CAS 315

Answer 4

Deals with auditors’ responsibility to identify and assess the risks of F/S material misstatements through understanding of the business and its environment

Question 5

CAS 210

Answer 5

Deals with auditors’ responsibilities of setting up the terms of an engagement

Question 6

What are the responsibilities based on CAS 210

Answer 6

Audit can be accepted or continued if:
- Prerequisites are in place
- The terms are mutually understood and accepted by auditor and management

Question 7

What are the requirements for prerequisites based on CAS 210

Answer 7

• acceptable accounting framework used
• management must agree to terms

Question 8

CAS 220

Answer 8

Deal with auditor responsibilities in relation to QC during a F/S audit

Question 9

What must firm and personnel do based on CAS 220

Answer 9

• establish and maintain QC system
• adhere to professional standard
• reports issued are appropriate

Question 10

QSQC 1

Answer 10

Deal with firm’s responsibilties and QC measures when performing an engagement

Question 11

CAS 200

Answer 11

Deals with independent auditor responsibilities during an audit and adhesion to CAS

Question 12

what does CAS 200 outline

Answer 12

• overall objective
• nature and scope of audit
• authority and structure