(A) Obtain information and explanation

(B) Obtain information and explanation from the employees and officers

(C) Obtain information and explanation necessary for the purpose of audit

(D) Both

(A) They are the best source of audit evidence

(B) They should be used only when there is a lack of other substantive audit evidence

(C) They should be used only when there is other substantive audit evidence to complement it

(D) Shareholders receive a copy of all material written representations

(A) Other audit clients

(B) Previous years

(C) Other companies in the same industry

(D) Budget

(A) The gap between how the directors of a company perform their duties and how the shareholders expect them to perform

(B) The gap between how the directors of a company perform their duties and how the general public expects them to perform

(C) The gap between the public perception of the role of company auditors and their statutory role and responsibilities

(D) The gap between the auditors’ own perception of their duties and how they are set out in the Companies Act

(A) Introductory paragraph specifying the pages to which the report relates and the accounting convention adopted

(B) Basis of the opinion

(C) Involvement of any specialist

(D) Statement of responsibilities of directors and auditors

(A) Conducting the inventory count

(B) Obtaining and evaluating audit evidence on the financial statements

(C) Calculating the year-end accruals figure for inclusion in the accounts

(D) Providing representations to management

(A) Positive assurance

(B) Negative assurance

(C) High level of assurance

(D) No assurance

(A) When a company negotiates a ‘friendly’ takeover, it usually appoints a firm of accountants to carry out due diligence on the takeover target.

(B) In an attestation engagement, the accountant is required to report on the quality of work performed.

(C) In a review engagement, evidence is gathered mainly by means of computation and inspection.

(D) In an engagement to review financial statements, the amount of work required is the same as for an audit

(A) one audit firm should audit the IFI and a different firm should audit the financial statements for the year as a whole.

(B) one accountancy firm should review the IFI and a different firm should audit the financial statements for the year as a whole.

(C) the same firm should audit the IFI and the financial statements for the year as a whole.

(D) the same firm should review the IFI and the financial statements for the year as a whol

(A) The auditor cannot give an opinion due to lack of evidence.

(B) The client’s financial statements were found to be materially misstated.

(C) The auditor could not conduct any tests due to lack of controls.

(D) The auditor did not find anything to indicate that a material misstatement exists.