E3 Planning, risk and sustainability

Written by Saad Rahman (ACCA)

اے سی سی اے · ایکسپرٹیز لیول میں نیا · 8 سوالات

نام: ____________________   تاریخ: ____________

1. What is one purpose of customer due diligence at acceptance?

   • A To set the audit fee
   • B To identify and verify the client and manage the risk of money laundering
   • C To choose the audit sample
   • D To prepare the tax return

2. Which is a precondition for an audit?

   • A A low fee
   • B A new auditor every year
   • C An acceptable financial reporting framework and management's agreement to its responsibilities
   • D A positive profit

3. An auditor looks only for evidence that supports a first impression. Which bias is this?

   • A Framing
   • B Availability bias
   • C Confirmation bias
   • D Anchoring bias

4. Which is an example of a sustainability-related business risk that could affect the audit?

   • A New climate regulation that makes an asset impaired
   • B The auditor's holiday
   • C A change in the audit fee
   • D A new office layout

5. Target audit risk is 5 percent, inherent risk 60 percent and control risk 70 percent. What is the detection risk?

   • A 42%
   • B 30%
   • C 8.3%
   • D 11.9%

6. What is done in an interim audit?

   • A Work on systems and controls and early testing before the year end
   • B The final analytical review only
   • C The signing of the report
   • D The issuing of written representations

7. What is kept in the permanent audit file?

   • A This year's inventory count
   • B The final report only
   • C Information of continuing relevance, such as the client's constitution
   • D This year's bank confirmations

8. Gross margin falls from 36 percent to 30 percent while revenue grows. What should the auditor do?

   • A Accept that it is the economy
   • B Investigate possible overstatement of cost of sales or understatement of revenue
   • C Reduce materiality to zero
   • D Ignore it