Reference no: EM132690831

Problem 1: Which of the following audit activities is undertaken at the finalisation and reporting stage of an audit?

a) Prepare engagement letter detailing terms of the audit engagement.

b) Undertake further tests of controls in relation to controls where weaknesses were previously identified.

c) Assign appropriate staff to the engagement to communicate with those charged with governance as necessary.

d) Formulate an opinion based on the results of the audit.

Problem 2: Which of the following statements LEAST accurately describes the auditor's determination of planning materiality?

a) There is an inverse relationship between the level of assessed risk and materiality.

b) The ownership structure of the client entity is irrelevant in determining planning materiality.

c) The stability of the base must be considering in determining planning materiality.

d) There is usually only one planning materiality for an engagement.

Problem 3: Which of the following is a test of control?

a) Reviewing patterns of debt collections to assess adequacy of provision for doubtful debts.

b) Reviewing evidence of monthly reconciliations of customer accounts by relevant manager.

c) Reviewing responses to external confirmation of a sample of the client's customers.

d) Reviewing calculations on sales invoice by comparing to shipping documents and selling prices.