Module 15

Question 1

planning

Answer 1

attention is directed to important areas
problems are identified early
selection of appropriate engagement staff
complete work effectively and efficiently
direction and supervision

Question 2

understanding the entity

Answer 2

analytical procedures
enquiry
inspection
observation

Question 3

analytical procedures

Answer 3

comparison
ratio analysis
reasonableness test
trend analysis
large and unusual items review

Question 4

materiality

Answer 4

overall materiality
performance materiality
specific materiality

Question 5

fraud

Answer 5

responsibility of prevention and detection of fraud lies with the directors

Question 6

tyres of fraud

Answer 6

fraudulent financial reporting
misappropriation of assets

Question 7

fraud risks

Answer 7

incentives and pressures
opportunities
rationalisations

Question 8

ADA

Answer 8

overall objective
obtain and cleanse data
consider relevance and reliability
carry out ADA
evaluate and report result