（財會考證）ACCACAT考試F8審計與認證業(yè)務單選題練習

1、ACCACAT考試F8審計與認證業(yè)務單選題練習1、During the course of the audit of Fir Co, a suspicious cash transfer has been identified. The audit team has reported this to the relevant firm representative as a potential money-laundering transaction.Which of the following statements is true regarding the confidentiality

2、of this information?A.Details of the transaction can only be disclosed with the permission of Fir CoB.If there is a legal requirement to report money-laundering, this overrides the principle of confidentialityC.Sycamore & Co is not permitted to disclose details of the suspicious transaction as the i

3、nformation has been obtained during the course of the auditD.In order to maintain confidentiality, Sycamore & Co should report their concerns anonymously2、Is the following statement true or false?A significant change in the ownership of an existing audit client is a factor which makes it appropriate

4、 for the auditor to review the terms of engagement.A.TrueB.False3、Which of the following is NOT an advantage of a company outsourcing its internal audit function?A.There will always be a reduction in costsB.Provides access to specialist skillsC.Can provide access to an internal audit team immediatel

5、y4、Which of the following audit procedures should be performed to form. a conclusion as to whether the financial statements require amendment in relation to the unfair dismissal claim?(1) Inspect relevant correspondence with Sampson Cos lawyers (2) Write to the finance director to confirm the claim

6、and level of damages (3) Review the post year-end cash book for evidence of payments to the finance director (4) Request that management confirm their views in a written representationA.1, 2 and 3B.1, 2 and 4C.1, 3 and 4D.2, 3 and 45、Which TWO of the following should be included in an audit engageme

7、nt letter? (1) Objective and scope of the audit (2) Results of previous audits (3) Managements responsibilities (4) Need to maintain professional scepticismA.1 and 2B.1 and 3C.2 and 4D.3 and 46、Auditors have a professional duty of confidentiality under ACCAs Code of Ethics and Conduct; voluntary dis

8、closure of information may be necessary in certain situations. For which TWO of the following situations should an auditor make VOLUNTARY disclosure? (1) If an auditor knows or suspects his client is engaged in money laundering (2) Where disclosure is made to non-governmental bodies (3) Where it is

9、in the public interest to disclose (4) If an auditor suspects his client has committed terrorist offencesA.1 and 4B.1 and 3C.2 and 4D.2 and 37、Which TWO of the following statements regarding the use of analytical procedures during the PLANNING stage of the audit are correct?(1) Analytical procedures

10、 are useful when forming an overall conclusion as to whether the financial statements are consistent with the auditors understanding of the company(2) Analytical procedures can be used to obtain relevant and reliable audit evidence(3) Analytical procedures can assist in identifying the risks of mate

11、rial misstatement(4) Analytical procedures can assist in identifying unusual transactions and eventsA.1 and 2B.2 and 3C.3 and 4D.2 and 48、Which of the following audit procedures should be carried out to confirm the balance owing to Carnation Co?(1) Review post year-end credit notes for evidence of a

12、cceptance of return (2) Inspect pre year-end goods returned note in respect of the items sent back to the supplier (3) Inspect post year-end cash book for evidence that the amount has been settled A.1, 2 and 3B.1 and 3 onlyC.1 and 2 only D.2 and 3 only9、Which of the following procedures are TESTS OF

13、 CONTROL an auditor should perform in testing the inventory cycle of their client whilst attending the inventory count? (1) Observe whether the clients staff are following the inventory count instructions (2) Review inventory present in the warehouse for evidence of damage or obsolescence (3) Obtain

14、 a sample of the last goods received notes and goods despatched notes and follow through to ensure inclusion in the correct accounting period (4) Inspect and review managements inventory count instructionsA.2 and 3B.1 and 4C.1 and 2D.3 and 410、Which of the following statements, relating to the audit

15、ors reporting responsibilities for going concern, if any, is/are correct? (1) Where management is unwilling to make their assessment of the companys ability to continue as a going concern, the auditor should include an emphasis of matter paragraph in the audit report (2) Where the use of the going c

16、oncern assumption is inappropriate, the auditor should include a qualified opinion in the audit reportA.1 onlyB.2 onlyC.Both 1 and 2D.Neither 1 nor 211、Which TWO of the following substantive procedures provide evidence over the EXISTENCE of trade receivables? (1) Agreeing a sample of goods despatche

17、d notes to sales invoices and to the sales ledger (2) Undertaking a receivables circularisation (3) Review of post year-end cash receipts, if these relate to year-end receivables follow through to the sales ledger (4) Recalculating the allowance for uncollectible accountsA.1 and 3B.2 and 4C.2 and 3D

18、.1 and 412、If, after the financial statements have been issued, Blenkin & Co becomes aware of a fact which may have caused its report to be amended, the firm should consider several possible actions.Which of the following are appropriate actions for Blenkin & Co to take?(1) Discuss the matter with m

19、anagement and, where appropriate, those charged with governance (2) Obtain a written representation from management (3) Consider whether the firm should resign from the engagement (4) Enquire how management intends to address the matter in the financial statements where appropriateA.1 and 2B.1 and 4

20、C.2 and 3D.3 and 413、Auditors are required to undertake an overall review of the financial statements as the final step before they form. their audit opinion. As part of this process they undertake a number of procedures.Which of the following procedures would an auditor NOT undertake as part of the

21、 overall review of the financial statements?A.Reviewing the financial statements to ensure they are consistent with the auditors knowledge of the business and the results of their audit workB.Performing analytical procedures on the financial statements to form an overall conclusion on the financial

22、statementsC.Undertaking a review of subsequent events to identify whether any adjustment or disclosure is required in the financial statementsD.Reviewing the financial statements to ensure compliance with accounting standards and local legislation disclosure14、Which of the following is NOT a princip

23、le of the UK Corporate Governance Code?A.There should be a rigorous and transparent procedure for the appointment of new directors to the boardB.The board should use the annual general meeting (AGM) to communicate with investorsC.The non-executive chairman should decide on the remuneration of all di

24、rectorsD.All directors should receive induction training on joining the board15、ISA 580 Written Representations require auditors to obtain written representations to support other evidence. For which of the following matters would a written representation NOT be suitable as audit evidence?A.That all

25、 deficiencies in internal control known to management have been communicated to the auditorB.That subsequent events requiring adjustment or disclosure in the financial statements have been dealt with appropriatelyC.That the payroll charge for three months of the year when the accounting records were

26、 unavailable is correctly statedD.That management has fulfilled their responsibility for the preparation and presentation of the financial statements16、Which of the following is NOT an audit software technique?A.Using computer programs to extract a sample for a receivables circularisationB.Running a

27、 computer program to test the addition of the cash bookC.Using a computer to perform an analytical review comparison of administration expenses against the prior yearD.Entering a sample of dummy sales orders through the computer system which takes customers over their credit limit to ensure the syst

28、em rejects the orders17、Which of the following safeguards would NOT be relevant in mitigating the threat identified in relation to fees?A.Disclosure to those charged with governance that fees from Fir Co represent more than 15% of Sycamore & Cos total fee incomeB.A pre-issuance review to be conducte

29、d by an external accountantC.The use of separate teams to provide the audit and non-audit servicesD.A post-issuance review to be conducted by an external accountant or regulatory body18、The following scenario relates to questions 15You are an audit senior of Viola & Co and are currently conducting t

30、he audit of Poppy Co for the year ended 30 June 20X6.Materiality has been set at $50,000, and you are carrying out the detailed substantive testing on the year-end payables balance. The audit manager has emphasised that understatement of the trade payables balance is a significant audit risk.Below i

31、s an extract from the list of supplier statements as at 30 June 20X6 held by the company and corresponding payables ledger balances at the same date along with some commentary on the noted differences:Carnation CoThe difference in the balance is due to an invoice which is under dispute due to faulty

32、 goods which were returned on 29 June 20X6.Lily CoThe difference in the balance is due to the supplier statement showing an invoice dated 28 June 20X6 for $70,000 which was not recorded in the financial statements until after the year end. The payables clerk has advised the audit team that the invoi

33、ce was not received until 2 July 20X6.The audit manager has asked you to review the full list of trade payables and select balances on which supplier statement reconciliations will be performed.Which of the following items should you select for testing?(1) Suppliers with material balances at the yea

34、r end (2) Suppliers which have a high volume of business with Poppy Co (3) Major suppliers with nil balances at the year end (4) Major suppliers where the statement agrees to the ledgerA.1 onlyB.1, 2 and 3 onlyC.2 and 4 onlyD.1, 2, 3 and 419、Which of the following audit procedures should be performe

35、d in relation to the balance with Lily Co to determine if the payables balance is understated?A.Inspect the goods received note to determine when the goods were receivedB.Inspect the purchase order to confirm it is dated before the year endC.Review the post year-end cashbook for evidence of payment

36、of the invoiceD.Send a confirmation request to Lily Co to confirm the outstanding balance20、Which of the following substantive procedures provides evidence over the COMPLETENESS of non-current assets?A.Select a sample of assets included in the non-current asset register and physically verify them at

37、 the client premisesB.Review the repairs and maintenance expense account to identify any items of a capital natureC.For assets disposed of, agree the sale proceeds to supporting documentation and cash book21、The following scenario relates to questions 610You are an audit manager at Blenkin & Co and

38、are approaching the end of the audit of Sampson Co, which is a large listed retailer. The draft financial statements currently show a profit before tax of $65m and revenue of $66m for the financial year ended 30 June 20X6. You have been informed that the finance director left Sampson Co on 31 May 20

39、X6.As part of the subsequent events audit procedures, you reviewed post year-end board meeting minutes and discovered that a legal case for unfair dismissal has been brought against Sampson Co by the finance director. During a discussion with the Human Resources (HR) director of Sampson Co, you esta

40、blished that the company received notice of the proposed legal claim on 10 July 20X6.The HR director told you that Sampson Cos lawyers believe that the finance directors claim is likely to be successful, but estimate that $150,000 is the maximum amount of compensation which would be paid. However, m

41、anagement does not intend to make any adjustments or disclosures in the financial statements.Blenkin & Co has a responsibility to perform. procedures to obtain sufficient, appropriate evidence that subsequent events are appropriately reflected in the financial statements of Sampson Co.Subsequent eve

42、nts procedures should be performed between the date of the financial statements and WHICH DATE?A.The date the subsequent events review is performedB.The date of approval of the financial statementsC.The date of the auditors reportD.The date the financial statements are issued22、Which of the followin

43、g is NOT a responsibility of the auditor?A.To provide an opinion on the truth and fairness of the financial statementsB.To conduct an audit in accordance with International Standards on AuditingC.To express an opinion on the companys going concern status23、Is the following statement true or false? A

44、udit risk is a function of two components, inherent risk and control risk.A.TrueB.False24、Which of the following is NOT an advantage of a company outsourcing its internal audit function?A.There will always be a reduction in costsB.Provides access to specialist skillsC.Can provide access to an intern

45、al audit team immediately25、Which of the following is a substantive audit procedure for wages and salaries?A.Inspect a sample of clock cards for evidence of authorisation by a responsible officialB.Recalculate a sample of payroll deductions such as employment taxes to confirm accuracyC.Attempt to ac

46、cess and make changes to the payroll master file using the log on for a junior clerk26、Which of the following is NOT an inherent limitation of internal control systems?A.Insufficient segregation of dutiesB.Possibility that employees may collude together fraudulentlyC.Possibility of human error in un

47、dertaking tasks27、Which TWO of the following controls of a sales system ensure that all goods despatched are completely and accurately invoiced?(1) Good despatched notes are matched to sales invoices(2) Sales invoices are sequentially numbered(3) Sales invoices are matched to customer orders(4) Regu

48、lar review of unfulfilled ordersA.1 and 2B.2 and 4C.2 and 3D.1 and 428、To help improve audit efficiency, Viola & Co is considering introducing the use of computer assisted audit techniques (CAATs) for some audits. You have been asked to consider how CAATs could be used during the audit of Poppy Co.W

49、hich of the following is an example of using test data for trade payables testing?A.Selecting a sample of supplier balances for testing using monetary unit samplingB.Recalculating the ageing of trade payables to identify balances which may be in disputeC.Calculation of trade payables days to use in

50、analytical proceduresD.Inputting dummy purchase invoices into the client system to see if processed correctly29、Auditors have a professional duty of confidentiality under ACCAs Code of Ethics and Conduct; voluntary disclosure of information may be necessary in certain situations. For which TWO of th

51、e following situations should an auditor make VOLUNTARY disclosure? (1) If an auditor knows or suspects his client is engaged in money laundering (2) Where disclosure is made to non-governmental bodies (3) Where it is in the public interest to disclose (4) If an auditor suspects his client has commi

52、tted terrorist offencesA.1 and 4B.1 and 3C.2 and 4D.2 and 330、Which of the following statements, if any, is/are correct? (1) Internal auditors should report to the finance director as they understand internal controls and are best placed to implement any recommendations in a timely manner (2) Compan

53、ies are not required to establish and maintain an internal audit functionA.1 onlyB.2 onlyC.Both 1 and 2D.Neither 1 nor 231、Which of the following is a DISADVANTAGE of recording accounting and control systems using internal control questionnaires?A.They may contain a large number of irrelevant contro

54、lsB.It can be difficult to identify missing controlsC.They are time consuming to complete32、Which of the following is NOT a responsibility of the auditor?A.To provide an opinion on the truth and fairness of the financial statementsB.To conduct an audit in accordance with International Standards on A

55、uditingC.To express an opinion on the companys going concern status33、Which of the following identifies the threat which could arise as a result of the finance directors previous employment at Sycamore & Co and recommends an appropriate safeguard?A.A self-review threat; review the work performed by

56、the previous audit managerB.A familiarity threat; a different audit manager should be appointedC.A self-review threat; change the existing audit planD.A familiarity threat; the firm should resign from the engagement34、Which of the following statements, relating to International Standards on Auditing

57、 (ISAs), if any, is/are correct?(1) International Standards on Auditing (ISAs) are issued by the International Accounting Standards Board (IASB) and provide guidance on the performance and conduct of an audit(2) In the event that ISAs differ from local legislation in a specific country, auditors mus

58、t comply with the requirements of the ISAsA.1 onlyB.2 onlyC.Both 1 and 2D.Neither 1 nor 235、Is the following statement true or false? Audit risk is a function of two components, inherent risk and control risk.A.TrueB.False36、Which of the following audit procedures for obtaining audit evidence is cor

59、rectly described?A.Recalculation involves the auditors independent execution of procedures or controls which were originally performed as part of the entitys internal controlB.Confirmation consists of seeking information of knowledgeable persons, within the company or outside the companyC.Reperforma

60、nce consists of checking the mathematical accuracy of documents or recordsD.Observation consists of looking at a procedure or process being performed by others37、ISA 580 Written Representations require auditors to obtain written representations to support other evidence. For which of the following m