ACA Assurance & Audit

Question 1

Which International Standard on Auditing requires the auditor to communicate Key Audit Matters?

Accepted Answer

ISA 701

Answer

ISA 315

Answer

ISA 700

Answer

ISA 720

Question 2

Under ISA 315, the auditor is required to obtain an understanding of the entity and its environment to:

Accepted Answer

Identify and assess risks of material misstatement

Answer

Prepare the financial statements

Answer

Design the management letter

Answer

Confirm the going concern assumption

Question 3

The concept of materiality in auditing means that:

Accepted Answer

Misstatements are material if they could influence economic decisions of users

Answer

Every error must be corrected regardless of size

Answer

Only errors over £10,000 need to be reported

Answer

The auditor guarantees the financial statements are accurate

Question 4

Which type of audit opinion is issued when financial statements present a true and fair view with no material misstatements?

Accepted Answer

Unmodified opinion

Answer

Qualified opinion

Answer

Adverse opinion

Answer

Disclaimer of opinion

Question 5

Under ISA 530, audit sampling involves:

Accepted Answer

Applying procedures to less than 100% of a population to draw conclusions about the whole

Answer

Testing all items in a population

Answer

Only testing items above a monetary threshold

Answer

Relying solely on analytical procedures

Question 6

Which assertion relates to whether transactions occurred during the accounting period?

Accepted Answer

Occurrence

Answer

Completeness

Answer

Accuracy

Answer

Classification