Key info gotten wrong in QB CH1-4

Question 1

What are the requirements for a company to be exempt from audit?

Answer 1

must meet any 2 of the following:

1. annual turnover is no more than £10.2 million
2. assets worth no more than £5.1 million
3. 50 or fewer employees on average

Question 2

what are the key audit matters?

Answer 2

1. areas of high audit risk

2. areas of significant auditor judgement

Question 3

if controls assessed as deficient: are test of controls used, substantive procedures, or both?

Answer 3

substantive procedures only

Question 4

what assertions are used account balances

Answer 4

1. existence
2. accuracy’s valuation, allocation
3. completeness

Question 5

is cut-off assertion used for account balances?

Answer 5

no. cut off assertion is used for classes of transactions

Question 6

what kind of a control is inquiring into operation of purchases transaction cycle?

Answer 6

test of control

Question 7

informed explicitly or by exception? : Financial stmts agree with accounting records and returns

Answer 7

informed by exception

Question 8

informed explicitly or by exception? : Fin. stmts give true and fair view

Answer 8

informed explicitly

Question 9

informed explicitly or by exception? : details of director’s emoluments and benefits are correctly disclosed

Answer 9

informed by exception

Question 10

True or false: assurance report which expresses and unmodified conclusion, is designed to enhance confidence of intended users other than the responsible party it is reported to

Answer 10

True