CPA Program — Advanced Audit and Assurance Feed

Question

Under the assurance framework in ASAE 3000 / the IAASB International Framework for Assurance Engagements, which combination of elements must be present for an engagement to be an assurance engagement?

Auditing Assurance Framework

Question · Easy

Question

An assurance practitioner is engaged to provide limited assurance over an entity's greenhouse gas emissions statement. How does the nature of the conclusion in a limited assurance engagement differ from a reasonable assurance engagement?

Auditing Assurance Framework

Question · Medium

Question

Which body issues the Australian Auditing Standards (ASAs) that give legal force to the equivalent International Standards on Auditing (ISAs) for audits conducted under the Corporations Act 2001?

Auditing Assurance Framework

Question · Easy

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Question

Under the APES 110 Code of Ethics (Independence Standards), a self-review threat to auditor independence most directly arises in which situation?

Ethics And Independence

Question · Medium

Question

Under ASA 220 / ISA 220 (Revised) and ASQM 1 (Quality Management), the engagement partner's responsibility for managing and achieving quality on an audit is best described as:

Ethics And Independence

Question · Medium

Question

ASQM 1 (Quality Management for Firms) requires firms to adopt a quality management approach that is primarily:

Ethics And Independence

Question · Medium

Question

Which of the following best describes the relationship between internal audit and external audit?

Auditing Assurance Framework

Question · Easy

Question

Under ASA 610 / ISA 610, when can the external auditor use the work of the internal audit function to obtain audit evidence?

Auditing Assurance Framework

Question · Medium

Question

The overarching objective of an audit of a financial report, as stated in ASA 200 / ISA 200, is for the auditor to:

Auditing Assurance Framework

Question · Easy

Question

Professional scepticism, as required by the auditing standards, is best described as:

Auditing Assurance Framework

Question · Easy

Question

Under APES 110, which safeguard would be most appropriate to address the self-interest threat created when audit fees from a listed client exceed a high proportion of the firm's total fees for several years?

Ethics And Independence

Question · Hard

Question

The five fundamental principles of the APES 110 Code of Ethics for professional accountants are:

Ethics And Independence

Question · Easy

Question

ASA 250 / ISA 250 deals with the auditor's consideration of laws and regulations. Which classification does the standard draw between categories of laws and regulations?

Auditing Assurance Framework

Question · Medium

Question

Under ASA 210 / ISA 210, a precondition for accepting an audit engagement is that:

Auditing Assurance Framework

Question · Medium

Question

Which statement about the auditor's responsibility for fraud under ASA 240 / ISA 240 is correct?

Planning The Audit

Question · Medium

Question

Under ASA 315 (Revised) / ISA 315 (Revised 2019), the auditor identifies and assesses risks of material misstatement by understanding the entity and its environment. 'Inherent risk factors' that the auditor considers when assessing inherent risk include:

Planning The Audit

Question · Medium

Question

The audit risk model is most accurately expressed as:

Planning The Audit

Question · Easy

Question

An auditor sets overall materiality for a manufacturing client at $500,000. 'Performance materiality' is best described as:

Planning The Audit

Question · Medium

Question

Under ASA 320, when determining overall materiality for a financial report, the auditor often applies a percentage to a chosen benchmark. Which is an appropriate consideration in selecting the benchmark?

Planning The Audit

Question · Medium

Question

Under ASA 330 / ISA 330, if the auditor's risk assessment indicates a high risk of material misstatement at the assertion level for a particular account, the appropriate response is to:

Performing The Audit

Question · Medium

Question

Tests of controls and substantive procedures differ in purpose. A test of controls is designed to:

Performing The Audit

Question · Easy

Question

Under ASA 500 / ISA 500, audit evidence is more reliable when it is:

Performing The Audit

Question · Easy

Question

Under ASA 505 / ISA 505 (External Confirmations), if management refuses to allow the auditor to send a confirmation request, the auditor should:

Performing The Audit

Question · Hard

Question

Under ASA 530 / ISA 530, the risk that the auditor's conclusion based on a sample differs from the conclusion if the entire population were tested is referred to as:

Performing The Audit

Question · Easy

Question

Under ASA 540 (Revised) / ISA 540 (Revised), auditing accounting estimates (such as expected credit loss provisions or asset impairments) requires the auditor to:

Performing The Audit

Question · Hard

Question

Under ASA 520 / ISA 520, substantive analytical procedures are most likely to be effective and efficient when:

Performing The Audit

Question · Medium

Question

Under ASA 501 / ISA 501, when inventory is material to the financial report, the auditor is ordinarily required to:

Performing The Audit

Question · Medium

Question

Under ASA 540 and broader guidance, indicators of possible management bias in accounting estimates include:

Performing The Audit

Question · Hard

Question

Under ASA 620 / ISA 620, when the auditor uses the work of an auditor's expert (for example, an actuary or property valuer), the auditor must:

Performing The Audit

Question · Medium

Question

In a group audit governed by ASA 600 (Revised) / ISA 600 (Revised), the group engagement partner's responsibility for the group audit opinion is:

Performing The Audit

Question · Medium

Question

ASA 600 (Revised) emphasises a risk-based approach to scoping group audit work. Under the revised standard, the group engagement team determines the work to be performed on components based primarily on:

Performing The Audit

Question · Hard

Question

Under ASA 402 / ISA 402, when an entity uses a service organisation (for example, a cloud-based payroll bureau), a Type 2 report (e.g., a GS 007 / ISAE 3402 Type 2 report) provides assurance about:

Performing The Audit

Question · Hard

Question

Under ASA 550 / ISA 550 (Related Parties), a key audit concern with related party transactions is that:

Performing The Audit

Question · Medium

Question

ASA 230 / ISA 230 requires audit documentation that would enable an experienced auditor, with no previous connection to the audit, to understand the work performed. Which of the following must the documentation record?

Performing The Audit

Question · Easy

Question

Under ASA 580 / ISA 580, written representations from management:

Conclusions And Reporting

Question · Medium

Question

Under ASA 560 / ISA 560 (Subsequent Events), events occurring between the date of the financial report and the date of the auditor's report that provide evidence of conditions existing at period end are:

Conclusions And Reporting

Question · Medium

Question

Under ASA 570 (Revised) / ISA 570 (Revised), if the auditor concludes that a material uncertainty related to going concern exists and disclosures in the financial report are adequate, the auditor should:

Conclusions And Reporting

Question · Hard

Question

Under ASA 570 (Revised), management uses the going concern basis of accounting unless it intends to liquidate or cease operations, or has no realistic alternative. The auditor's responsibility regarding going concern is to:

Conclusions And Reporting

Question · Medium

Question

Under ASA 700 (Revised) / ISA 700 (Revised), an unmodified (unqualified) opinion is expressed when the auditor concludes that:

Conclusions And Reporting

Question · Easy

Question

An auditor finds that inventory is materially overstated and the misstatement is confined to that account; management refuses to adjust. The most appropriate opinion under ASA 705 / ISA 705 is:

Conclusions And Reporting

Question · Medium

Question

The auditor is unable to obtain sufficient appropriate audit evidence about a single material account (e.g., an unobservable opening inventory) and the possible effects are material but not pervasive. Under ASA 705 the appropriate opinion is:

Conclusions And Reporting

Question · Hard

Question

Under ASA 706 / ISA 706, an Emphasis of Matter paragraph is used to:

Conclusions And Reporting

Question · Medium

Question

Under ASA 701 / ISA 701, Key Audit Matters (KAM) in the auditor's report of a listed entity are:

Conclusions And Reporting

Question · Medium

Question

Under ASA 720 / ISA 720, the auditor's responsibility in relation to 'other information' (such as the directors' report or operating and financial review accompanying the audited financial report) is to:

Conclusions And Reporting

Question · Medium

Question

Under ASA 260 / ISA 260 (Communication with Those Charged with Governance), which of the following should the auditor communicate?

Conclusions And Reporting

Question · Medium

Question

Under ASA 265 / ISA 265, a 'significant deficiency' in internal control is one that:

Conclusions And Reporting

Question · Medium

Question

Under ASA 450 / ISA 450 (Evaluation of Misstatements), the auditor must accumulate misstatements identified during the audit other than those that are 'clearly trivial.' At the conclusion, the auditor evaluates whether:

Conclusions And Reporting

Question · Medium

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