Love or Hate?

In: Novels

Submitted By chinglove
Words 1823
Pages 8
CHAPTER 21

1. Which of the following does not affect the form and content of working papers?
a. Nature and complexity of the business
b. Form of the auditor's report
c. Specific audit methodology and technology used in the course of the audit.
d. Estimated audit fee agreed upon between the client and the auditor.

2. Which of the following need not be documented in the working papers
as required by PSA 230(Clarified)?
a. Audit evidence obtained, the audit procedures applied and the testing performed have provided sufficient competent evidential matter to afford a reasonable basis for an opinion.
b. The work has been adequately planned and supervised.
c. A sufficient understanding of the internal control structure had been obtained to plan the audit and to determine the nature, timing and extent of tests to be performed.
d. Basis in choosing the members of the audit engagement team.

3. When planning an audit, which of the following is not a factor that affects auditors' decisions about the quantity, type, and content of audit working papers?
a. The auditors' need to document compliance with financial reporting standards.
b. The existence of new sales contracts important for the client's business.
c. The auditors' judgment about their independence with regard to the client.
d, The auditors' judgments about materiality.

4. An audit working paper that shows the detailed evidence and procedures regarding the balance in the accumulated depreciation account for the year under audit will be found in the
a. Current file evidence working papers.
b. Permanent file working papers.
c. Administrative working papers in the current file.
d. Planning memorandum in the current file.

5. The audit working paper that reflects the major components of an amount reported in the financial statements is the
a. Interbank transfer schedule. c.…...

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