Reference no: EM132944900

Problem 1: Which assertions are tested by the audit procedure tracing ?

Option 1: Completeness.
Option 2: Accuracy.
Option 3: Occurrence.
Option 4: Rights and obligations.

Problem 2: Which of the following is true about audit risk?

Option 1: It can never be zero, but can be minimised by identifying key risks and adjusting the audit effort accordingly.
Option 2: It is the risk that the auditor will give a wrong opinion when the financial statements are materially misstated.
Option 3: It cannot be controlled by the auditor.
Option 4: It is the risk that the financial statements of the client are materially misstated.

Problem 3: Which of the following are part of the risk assessment phase of an audit?

Option 1: Tests of controls
Option 2: Risk and materiality assessment
Option 3: Understanding the client
Option 4: Substantive testing

Problem 4: Which of the following statements regarding the quantity of evidence that an auditor will collect are true?

Option 1: It is dependent on the level of detection risk.
Option 2: It is proportional to the size of the audit client.
Option 3: It is firmly established at the commencement of the audit.
Option 4: It may vary with the level of assessed control risk.