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E3 Control, evidence, automated tools and reporting
ACCA · New at Expertise level · 8 questions
Name: ____________________ Date: ____________
Which of these is a general IT control?
- A A calculation of tax
- B Controls over access and change management
- C A purchase order approval
- D A check that an invoice has a valid customer code
Which method of documenting a system shows the whole flow clearly but takes time to prepare?
- A A flowchart
- B Narrative notes
- C A questionnaire
- D A bank statement
What should a covering letter on control deficiencies include?
- A The auditor's personal views on staff
- B The deficiency, its potential effect and a recommendation
- C A new opinion
- D Only the audit fee
What is test data?
- A Dummy transactions processed through a system to test its controls
- B A sample of employees
- C A summary of the audit plan
- D A real customer list
Which statement about data analytics in audit is correct?
- A It can test whole populations but needs skills and reliable data
- B It guarantees no fraud
- C It is always cheaper
- D It removes the need for judgement
Material uncertainty about going concern is properly disclosed. How is it reported?
- A In a separate section on material uncertainty, with an unmodified opinion
- B As an adverse opinion
- C As a disclaimer
- D It is not reported
Should the auditor's report refer to the work of an expert used by the auditor?
- A Only if the expert asks
- B Generally not, because the auditor is solely responsible for the opinion
- C Only for small entities
- D Always
Other information in the annual report, including sustainability information, is inconsistent with what the auditor knows. What happens if management does not correct it?
- A Nothing
- B The auditor corrects it
- C The audit opinion is withdrawn automatically
- D The auditor reports it in the other information section
Answer key
1. B, 2. A, 3. B, 4. A, 5. A, 6. A, 7. B, 8. D
Application controls apply to specific processing.
Narrative notes are easy to prepare but hard to follow if complex.
Management responses are also invited.
It is an automated audit technique.
It increases coverage and insight.
If the disclosure is inadequate, the opinion is modified.
Law may require a reference in some cases.
The auditor first discusses it with management.