411. Which of the following information should a successor auditor obtain during the inquiry of the predecessor auditor before accepting engagement?
A. Information about integrity of management.
B. Disagreement with management concerning auditing procedures.
C. Review of internal control system.
D. Organization structure.
412. The audit engagement letter generally should include a reference to each of the following except___________.
A. limitations of auditing
B. responsibilities of management with respect to audit work.
C. expectation of receiving a written management representation letter.
D. a description of the auditors method of sample selection.
413. When issuing an unqualified opinion the auditor who evaluated the audit findings should be satisfied that the ______________.
A. amount of known misstatement is documented in working papers.
B. estimates of the total likely misstatement are less than the materiality level.
C. estimated of the total likely misstatement is more than the materiality level.
D. estimates of the total likely misstatement cannot be made.
414. The use of an audit engagement letter is the best method of documenting ________.
A. The required communication of significant deficiencies in internal control.
B. Significantly higher control risk than that assessed in prior audit.
C. Objective and scope of auditors work.
D. Notification of any changes in the original arrangements of the audit.
415. An auditor who accepts an audit but does not posses the industry expertise of the business entity should______________.
A. engage experts.
B. obtain knowledge of matters that relate to the nature of entity business.
C. inform management about it.
D. take help of other auditors.
416. The least import element in the evaluation of an audit firm system of quality control would relate to___________.
A. assignment of audit assistants.
B. system of determining audit fees.
C. consultation with experts.
D. confidentiality of clients information.
417. In determining the level of materiality for an audit what should not be considered?
A. Prior years errors.
B. The auditor remuneration.
C. Adjusted interim financial statement.
D. Prior year financial statements.
418. Which of the following statement is most closely associated with analytical procedure applied at substantive stage?
A. It helps to study relationship among balance sheet accounts.
B. It helps to discover material misstatements in the financial statements.
C. It helps to identify possible oversights.
D. It helps to accumulate evidence supporting the validity of a specific account balance.
419. Which of the following statement is generally, correct about the reliability of audit evidence?
A. To be reliable, evidence should conclusive rather than persuasive.
B. Effective internal control system provides reliable audit evidence.
C. Evidence obtained from outside sources routed through the client.
D. All are correct.
420. Which of the following Auditing Assurance Standard deals with Audit planning?
A. AAS-7.
B. AAS-8.
C. AAS-9.
D. AAS-3.