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Assurance - Morning of Day 2 Flashcards | StudBud
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Assurance - Morning of Day 2
Assurance - Morning of Day 2
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StudBud Administration
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#assurance
Flashcards
12 cards
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Practice quiz
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Questions
12
Answers
1
What level of assurance is given on a statutory audit?
Reasonable
Limited
Absolute
Negative
2
For a NON-listed client, we need to review independence of engagement partner after...
7 years
10 years
15 years
5 years
3
Which of the below is NOT a self-interest threat?
Fee dependence
Business relationship with an audit client
Shares in an audit client
Client staff joins the audit firm
4
Which statement best describes the management threat?
Auditor becomes closely aligned with the views of management
Auditor is reluctant to take actions adverse to audit firm
Auditor's conduct is influenced by fear
Auditor is reluctant to question work done by client
5
Which ONE of the below is NOT a benefit of the engagement letter?
Confirms scope of the engagement
Provide written confirmation of acceptance of the engagement
Certifies the auditor's opinion
Defines extent of the auditor's responsibilities.
6
Long associations represent what type of threat to independence?
Familiarity threat
Self-review threat
Self-interest threat
Management threat
7
How many threats to independence does the FRC identify?
6
5
Unlimited
3
8
Which of the following are examples of British values?
Mutual respect and tolerance
Individual liberty
Rule of ethics
Democracy
9
Kaplan's Academic Support Team work on weekends and Bank Holidays
False
True
10
Whom should an auditor inform of suspected money laundering?
The Firm's Money Laundering Nominated Officer
The Audit Committee
The firm's Ethics Partner
The Board of Directors
11
The audit partner leaves to take up employment with the client. What should the audit firm do?
Review independence and consult Ethics Partner
Resign as auditors and not take on audit again for 2 years
Arrange a new audit team to mitigate the familiarity threat
Disclose to those charged with governance at the client
12
An audit firm's fees from a NON-listed company cannot exceed what % of its total fee income?
20%
15%
5%
10%
