TÀI LIỆU -F8

CHAPTER 1:
STT Question Answer

1. Which three of the following are key elements of a A user, A subject matter,
general assurance engagement? Suitable criteria
2. Which three of the following describe aspects of the Users do not understand
expectations gap with respect to the external audit the meaning of the audit
opinion
Users do not aware of the
limitations of the audit
process
Users do not understand
what the audit process
involves
3. Which one of the following qualifications is required for individuals working on audits
in the UK?
4. Which two of the following are limitations of the Sampling is used in
provision of assurance? assurance work
Client system have
inherent limitations
5. In any assurance engagement there are three parties Responsible party
involved: the responsible party, the practitioner and user.
In respect of given subject matter state which party
determines the suitable criteria?
6. In any assurance engagement there are three parties Practitioner
involved: the responsible party, the practitioner and user.
In respect of given subject matter state which party
provides an opinion on whether the subject matter
complies with the criteria?
7. Which ONE of the following statements best describes Sufficient appropriate
the evidence obtained and the opinion given in a evidence and a positive
resonable assurance engagement? opinion
8. For each of the following statements select whether they TRUE
are true or false.
A statutory audit gives reasonable assurance that the
FSs give a true and fair view?
9. For each of the following statements select whether they TRUE
are true or false.
A negative assurance conclusion gives a limited level of
assurance
10. For each of the following statements select whether they FALSE
are true or false.
Reasonable assurance is absolute assurance of the
correctness of the subject matter
11. The statement: "The criteria for all assurance FALSE
engagements will be the same" is true or false?
12. The statement: "Suitable criteria can only be identified FALSE
for assurance engagements relating to financial
statements" is true or false?
13. The statement: "Relevant criteria for assurance TRUE
engagements relating to FSs are likely to be
accounting standards" is true or false?
14. There are two types of assurance engagement: reasonable Positive
assurance engagements and limited assurance
engagements. There are two types of assurance
conclusion: Positive and Negative. For reasonable
assurance engagement, select the appropriate conclusion
given?
15. There are two types of assurance engagement: reasonable Negative
assurance engagements and limited assurance
engagements. There are two types of assurance
conclusion: Positive and Negative. For limited assurance
engagement, select the appropriate conclusion given?
16. Which one of the following best describes the concept of An assurance firm's
assuarance? satisfaction as to the
reliability of an assertion
being made by one party
for the use of another party
17. Which one of the following is NOT a benefit of an Attests to the correctness
assurance report on Financial information? An assurance of the information being
report reported upon
18. In any assurance engagement there are three parties Responsible party
involved: The responsible party, the practitioner and the
user. In respect of given subject matter state which party
prepares the subject matter
19. In any assurance engagement there are three parties Practitioner
involved: The responsible party, the practitioner and the
user. In respect of given subject matter state which party
gathers evidence on the subject matter?
20. The following is an extract from an independent Limited level of assurance
accountant's unmodified report on a profit forecast: "Base expressed negatively
on our examination of the evidence supporting the
assumptios, nothing has come to our attention which
causes us to believe that these assumptions do not
provide a reasonable basis for the forecast".
Which ONE of the following BEST describes the type of
assurance provided by this statement?
21. The level of assurance given by an assurance engagement Reasonable
will depend on the type of engagement. For statutory
audit, select what level of assurance you would expect
to be given:
22. The level of assurance given by an assurance engagement Limited
will depend on the type of engagement. For Review of
financial information, select what level of assurance
you would expect to be given:
23. The level of assurance given by an assurance engagement Limited
will depend on the type of engagement. For Report on
profit and cash flow forecasts, select what level of
assurance you would expect to be given:
24. In the context of a statutory audit which THREE of the following are examples of the
expectation gap? The belief that:
25. Which of the following is the most appropriate definition The external audit is an
of the external audit? exercise carried out by
auditors in order to give an
opinion on whether the
financial statements of a
company are materially
misstated.
26. Who normally appoints the external auditors of a Shareholders
company?
27. Which of the following could cause advocacy Firm to represent client in
a dispute with the tax
authorities
28. You are an audit manager of an audit firm and have just The gift should only be
been assigned the audit of ABC company. In an initial accepted if its value is
meeting with the finance director of ABC, you learn that trivial and inconsequential
the audit team will not be entertained on ABC's yacht to the recipients.
this year, instead, he has arranged a balloon flight costing
less than one-tenth of the expense of using the yacht and
hopes this will be acceptable.
Which of the following actions should be taken to ensure
the firm complies with Code of Ethics and Conduct?
29. You are the audit manager of an audit firm and you are self-interest
planning the audit of ABC Co, a listed company, which
has been an audit client for five years and specialises in
manufacturing luxury laptop. The employees of ABC Co
are entitled to purchase laptop at a discount of 20%.
The audit team has in previous years been offered the
same level of staff discount.
Which of the following options best identifies the valid
potential threats to independence in the audit of ABC
Co and allocates the threat to the most appropriate
category?
30. You are the audit manager of an audit firm and you are Unless the value of the
planning the audit of ABC Co, a listed company, which discount is trivial and
has been an audit client for five years and specialises in inconsequential to the
manufacturing luxury laptop. The employees of ABC Co audit team members, the
are entitled to purchase laptop at a discount of 20%. The offer should be declined
audit team has in previous years been offered the same
level of staff discount.
Which of the following statements is true in accordance
with Code of Ethics and Conduct?
31. In which of the following situations would the auditor be (1) and (3) only
able to disclose confidential information about a client?
(1) Disclosure is required by law.
(2) Disclosure is permitted by law but the auditor has
not requested the client's permission.
(3) The auditor suspects that the client has committed
money-laundering offences.
32. ABC audit firm audits XYZ Co. In accordance with Code (3) and (4)
of Ethics and Conduct which two of the following
circumstances would constitute a threat to objectivity?
(1) An employee of ABC owns shares in XYZ Co but is
not part of the audit team
(2) The best friend of the engagement partner owns a
significant indirect financial interest in XYZ Co
(3) The audit manager of an audit owns a small number
of shares in XYZ Co
(4) The husband of the audit partner owns shares in XYZ
Co
33. Which two of the following are fundamental principles (1) and (3)
as stated in the Code of Ethics and Conduct?
(1) Objectivity
(2) Independence
(3) Confidentiality
(4) Professional scepticism
CHAPTER 2:
STT Câu hỏi Đáp án
1. The definition of the risk of material misstatement is 'Inherent Risk FALSE
× Control Risk × Detection Risk'. Is this statement true or false?
2. The higher the risk of material misstatement the more likely it is that FALSE
the auditor will decide to perform substantive procedures during the
interim audit rather than at the period end?
(Rủi ro có sai sót trọng yếu càng cao thì khả năng kiểm toán viên
quyết định thực hiện các thử nghiệm cơ bản trong quá trình kiểm toán
giữa niên độ thay vì vào cuối kỳ càng cao?)
3. For each of the following statements select whether they are true or FALSE
false in respect of the audit engagement letter: The engagement letter
should be sent before acceptance of appointment
(chọn xem chúng đúng hay sai đối với thư cam kết kiểm toán: Thư
cam kết phải được gửi trước khi chấp nhận cuộc hẹn)
4. For each of the following statements seclect whether they are True or TRUE
false in respect of the audit engagement letter: The engagement
letter should be sent after the appointment of the auditor but
before the commencement of the audit
5. For each of the following statements select whether they are True or TRUE
false in respect of the audit engagement letter: An engagement letter
should be sent to all new clients
6. For each of the following statements seclect whether they are true or FALSE
false in respect of the audit engagement letter: The engagement letter
should be sent after commencement of the audit but before the
signing of the auditor's report
7. Performance materiality levels are higher than the materiality for the FALSE
financial statements as a whole.Is this statement true or false?
(Mức trọng yếu của hiệu quả hoạt động cao hơn mức trọng yếu của
toàn bộ báo cáo tài chính. Tuyên bố này đúng hay sai?)
8. For each of the following factors at a prospective client select whether LOW RISK
that factor indicates that client is high risk or low risk: Company has
prudent accounting policies (Công ty có chính sách kế toán thận
trọng)
9. For each of the following factors at a prospective client select whether HIGH RISK
that factor indicates that client is high risk or low risk: Company
carries out unusual transactions (công ty thực hiện giao dịch bất
thường)
10. C&C company, an assurance firm, has the following two clients HIGH RISK
among its client portfolio. For each client, seclect whether inherent
risk is high or low.
Hana Ltd is currently facing financial difficulties and is seeking
alternative forms of finance.
11. C&C company, an assurance firm, has the following two clients HIGH RISK
among its client portfolio. For each client, seclect whether inherent
risk is high or low.
Tulip Ltd is planning to list on the local stock exchange within the
next two years.
12. For each of the following factors at a prospective client seclect HIGH RISK
whether that factor indicates that client is high risk or low risk:
Company currently has no finance director
13. 'Audit risk' represents the risk that the auditor will give an (2) VÀ (3)
CONTROL
inappropriate opinion on the financial statements when the financial VÀ
statements are materially misstated. Which of the following SAMPLING
categories of risk can be controlled by the auditor? Category of risk:
(1) Control risk
(2) Detection risk
(3) Sampling risk
14. Which THREE of the following procedures should be carried out 1 VÀ 2
after the audit firm has decided to accept appointment as auditor?
(1) Ensure that the outgoing auditors' removal/resgination has been
properly conclucted
(2) Ensure that a resolution has been passed at the general meeting
to appoint the new auditors
(3) Perform checks to ensure that there are no legal or ethical
reasons why the new audit firm cannot act as auditor
Submit a letter of engagement to the directors
15. Which TWO of the following are auditors always required to do on 1 VÀ 2
being invited to accept an audit engagement?
(1) Ensure they are professionally existing resources to carry out
the audit
(2) Ensure they have adequate existing resources to carry out the
audit
(3) Obtain references for key personnel within the entity to be
audited
(4) Communicate with the existing auditors to discover any
reasons they should not accept appointement
16. Which THREE of the following are purposes of a letter of 1, 3, 4
engagement?
(1) Setting out the form of any report to be issued
(2) Providing constructive suggestions to management concerning
improvements in internal control
(3) Documenting and confirming acceptance of the appointment
(4) Narrowing the expectations gap
(5) Providing evidence on matters where other evidence is not
expected to exist
17. Which of the following procedures must the auditor use to obtain an 1 VÀ 2
understanding of the entity and its environment in accordance with
ISA 315- Identifying and assessing the risks of material misstatement
through understanding the entity and its environment?
(1) Analytical procedures
(2) Inquiry
(3) Confirmation
(4) Reperformance
18. Which TWO of the following might indicate that an assurance client 1 VÀ 3
could be higher than normal inherent or control risk?
(1) Poor recent performance
(2) Strong internal controls
(3) Unusual transactions
(4) The existence of an internal audit department
19. Which of the following statements about materiality are correct? 1 VÀ 2
(1) Information is material if its omission or misstatement could
influence the economic decisions of users of the financial statements.
(2) Materiality is based on the auditor's experience and judgement.
(3) Materiality is always based on revenue.
(4) Materiality should only be calculated at the planning stage of the
audit
20. The auditor of A Co wishes to reduce audit risk. Which of the 1 VÀ 3
following actions could the auditor take to achieve this?
(1) Increase sample sizes
(2) Reduce control risk
(3) Assign more experienced staff to the engagement team
21. Which ONE of the following is NOT a benefit of an engagement D
letter in respect of assurance services?
A. Clearly defines the extent of the assurance provider's
responsibilities
B. Provides written confirmation of the acceptance of the
engagement
C. Confirms the scope of the engagement
D. Certifies the assurance provider's opinion
22. What are the two elements of the risk of material misstatement at the C
assertion level?
A. Inherent risk and detection risk
B. Audit risk and detection risk
C. Inherent risk and control risk
D. Detection risk and control risk
23. When gaining an understanding of the specific business operations of D
an audit client which of the following matters would an auditor need
to consider?
A. Accounting principles and industry specific practices relevant
to the client's business
B. Acquisitions or disposals of the client's business activities
C. Leasing of property, plant or equipment for use in the client's
business
D. Products or services and markets of the client's business
24. Which of the following best describes professional scepticims. The C
assurance provider shoud:
A. Not believe anything that management tells him
B. Not believe anything that management tells him, without
obtaining supporting evidence
C. Apply a questioning mind to the information and evidence he
obtains
Always assume the worst outcome in cases of uncertainty
25. Who is responsible for the prevention and detection of fraud? C
A. Internal auditors
B. External auditors
C. Those charged with governance and management (những ng
chịu trách nhiệm quản trị và điều hành)
The audit committee
CHAPTER 3:
ST CAU HOI DAP AN
T
1 Which three of the following are of the To ensure appropriate attention it devoted to
objectives of the audit planning the important areas of the audit, To identify
potential problems and resolve them on the
timely basis, To assign work to remembers
of the audit team
2 Which three of the following would Details of economic factors and industry
normally be included in the overall audit conditions, The results of initial analytical
strategy? procedures, Identification of specific audit
risks
3 Which three of the following would A significant number of balances are based
increase inherent risk on estimates, The financial statements
include complex transactions, A company is
seeking to raise Finance
4 Which three of the following constitutes Considerations of comparable comparable
analytical procedures information for prior periods,
Considerations of relationships between
elements of financial information that are
expected to conform to a predicted pattern,
Consideration of similar industry
information
5 With respect to ISA 315, which three of Inquiries of management and others within
the following procedures shall be used the entity, Analytical procedures,
in understanding the entity and its Observation and Inspection
environment
6 Which one of the following is normally Analytical procedure
designed to detect possible material
monetary errors in the figures in
financial statements?
7 Which one of the following does setting What audit staff to assign to the audit
a preliminary materiality threshold not
help auditors to decide?
8 Which ONE of the following best Fraud is an intentional act whereas
describes the principal difference error is unintentional
between fraud and errors?
9 ABC Ltd's quick ratio has fallen from The entity has purchased a property for cash
1.8:1 to 1.5:1.
Which ONE of the following might help
to explain this decline?
10 Which of the following statements To examine and express an opinion on the
correctly describes the principal purpose company's financial statements
of an external audit of a limited
company?
11 Which of the following would normally Nature, timing, and the extent of planned
be included in the audit plan? risk assessment procedures
12 Which two of the following would be Industry, regulatory and other external
used in understanding the entity in factors, A preliminary review of internal
accordance with ISA 315? controls
13 Which TWO of the following options are Cash decreasing,Receivalbes increasing
signs of overtrading?
14 Which TWO of the following are true in Disclosure of related party
respect of related party transactions? transactions is unlikely to be material
to the financial statements, There may
be a significant control risk in relation
to related party transactions
15 In each of the following case, select Inherent risk higher than normal
whether inherent riskn is higher or lower
than normal: The company operates a
profit related by scheme:
16 In each of the following case, select Inherent risk higher than normal
whether inherent riskn is higher or lower
than normal: The business is of the
company is cash - based
17 In each of the following case, select Inherent risk lower than normal
whether inherent risk is higher or lower
than normal: Financial statements
contain balances with straighfoward
Financial Accounting requirements
18 In the following case, select whether Inherent risk higher than normal
inherent is higher or lower than normal:
The company has recently listed on the
local stock exchange with high profit
expectations from analysts.
19 In the following case, select whether Inherent risk higher than normal
Inventory is largest balance on the
statement of financial position
20 In the following case, select whether Inherent risk lower than normal
The company operates in a slow -
moving, stable industry
21 For of the following statements, select TRUE
whether they are true or false in respect
of the concept of materiality: materiality
may depend on the size of the error in
the context of its omission or
misstatement
22 For of the following statements, select TRUE
of the concept of materiality: Materiality
should be considered when planning
audit procedures and when evaluating
discovered misstatement
23 For of the following statements, select FALSE
of the concept of materiality: Materiality
is always expressed as a proportion of
profit
24 For each of the following statements, TRUE
select whether they are true or false in
respect of the concept of materiality:
material should be calculated at the
planning stage of all audits
25 For each of the following statements, FALSE
select whether they are true or false in
respect of the concept of materiality:
Once established, the materiality level
initially set cannot be revised during the
course of the audit
26 For the following statements, select FALSE
whether they are true or false in respect of
the concept of materiality.
Materiality depends only on the monetary
amount of an item?
27 For the following statements, select TRUE
Materiality may depend on either the
nature of an item or its monetary amount
28 For the following statements, select TRUE
Materiality is a matter of professional
judgment
29 Is the following statement regarding audit TRUE
evidence true or false? Appropriateness is
the measure of the quality of audit
evidence.
30 Audit risk can be split into three Control risk
components: inherent risk, control risk
and detection risk.
For the following example, seclect the
types of risk illustrated: The organisation
has few employees in its accounting
department.
31 Audit risk can be split into three Inherent risk
components: inherent risk, control risk
and detection risk.
For the following example, seclect the
types of risk illustrated: The organisation
operates in a fast - moving, high tech
enviroment
32 Audit risk can be a split into three Inherent
components: inherent risk; control risk
and detection risk. For each of the
following examples, select the types of
risk Illustrated: Directors' pay is related to
company profitability
33 Audit risk can be a split into three Detection
risk Illustrated: Senior management
regularly override the system of controls
risk Illustrated: The organisation is
seeking to raise finance for a new
venture
risk Illustrated: The organisation has a
number of estimate in its financial
statements.
36 Audit risk can be a split into three Control
risk Illustrated: The organisation has a
high turnover of staff in the accounts
department
37 Audit risk can be a split into three Detection
risk Illustrated: The auditor will be
using samples in testing
38 Cost of sales: Warrents futhur testing
39 Repairs and renewals No futher testing required
40 Advertising Warrents futhur testing
41 Select the MOST appropriate approach Substantive proceduress only
which should be used by the assurance
firm in the given circumstance.
The auditor of a new client, recently
started up, with few employees in its
accounting department?
42 Select the MOST appropriate approach A mix of tests of control and
which should be used by the assurance substantive procedures
firm in the given circumstance.
The auditor of a long - standing client
with a sophisticated IT system and an
internal department?
43 Which of the following statements are (1) and (3)
correct with regard to the relationship
between the audit plan and the audit
strategy for an external audit
engagement?
(1) The audit plan should be developed
before the audit strategy is established.
(2) The audit plan and the audit
strategy should be established and
developed at the same time.
(3) The overall audit strategy should be
more detailed than the audit plan.
(4) The audit strategy should be
established before the audit plan is
developed.
44 What are the purposes of planning the (1), (2) and (3)
audit?
(1) To ensure appropriate attention is
devoted to different areas of the audit
(2) To identify potential problem areas
(3) To facilitate delegation of work to
audit team members
(4) To ensure the audit is completed
within budget and time restraints
45 Which of the following factors influence (1) and (2)

the form and content of audit working
papers?
(1) Risks of material misstatement
(2) Exceptions identified
(3) Nature of the package used for
documentation
(4) Cost to the audit
CHAPTER 4:
STT QUESTION ANSWER
1 Which ONE of the following is NOT a test Walk-through test
that could be used by assurance providers to
provide evidence relating to a balance in the
financial statement?
2 Which TWO of the following are valid Evidence from external sources is more
comments about the quality of assurance reliable than evidence obtained from the
evidence? entity's records, Evidence from internal
sources is more reliable when related
internal controls operate effectively
3 Which THREE of the following are Occurence, Completeness, Cut - off
assertions used by the auditor about classes
of transactions?
4 Which THREE of the following statements Positive assurance will be given on a

are valid? statutory audit assignment, Positive
assurance requires more rigorous work
to be undertaken than negative
assurance does, Negative assurance is
assurance given in the absence of any
indications to the contrary
5 Which TWO of the following descirbe Users blaming the auditors for a fraud
manifestations of the expectations gap discovered in a company subsequent to
an audit, Users relying on the audited
financial statements as a fair valuation
of the company
6 The level of assurance given by an Reasonable
assurance engagement will depend on the
type of engagement.
For each of the following examples, select
the level of assurance you would expect to
be given:
Statutory audit
7 The level of assurance given by an Limited
type of engagement.
be given:
Report on prospective financial information
8 The level of assurance given by an Limited
type of engagement.
be given:
Report on review of interim financial
information
9 For each of the following situations select Substantive procedures only
the most appropriate approach which should
be used by the assurance firm in the given
circumstances:
The auditor of a client where controls have
been assesed as deficient.
10 The following are types of test that might be Classification
carried out by an assurance provider. For
each example select the financial statement
assertion that is being tested:
Review of the financial statements using a
Companies Act checklist
11 The following are types of test that might be Completeness
carried out by an assurance provider. For
each example select the financial statement
assertion that is being tested:
Tracing non- current assets which have been
observed in use back to the non-current asset
register:
12 For each of the following situations select A mix of test of controls and substantive
the most appropriate approach which should procedures
be used by the assurance firm in the given
circumstances:
The auditor of a client where controls have
been assesed as strong
13 Which TWO of the following are assertions Existence, Completeness
used by the auditor about account balances
at the period end?
14 Which TWO of the following are assertions
used by the audito about presentation and Accuracy, Completeness
disclosure?
15 For each of the following statements select TRUE
whether they are true of false in respect of
substanctive procedures.
The auditor must carry out substantive
procedures on all material items
16 For each of the following statements select FALSE
The auditor only carry out substantive
procedures if the results of test of controls
are inconclusive
Substantive procedures include both
analytical procedures and test of details
18 Two types of procedures used in gathering Test of control
evidence are test of controls and substantive
procedures.
For each of the following examples select
the type of procedure illustrated.
Observation of opening the post
19 Two types of procedures used in gathering
procedures. Substantive procedure
Calculation of the gross profit margin and
comparison with that of the previous
accounting period
20 Two types of procedures used in gathering Test of control
procedures.
Reviewing invoices paid for evidence of
authorisation
21 An auditor's report prepared in accordence
with ISA 700. The auditor's report on
financial statements expresses an opinion on
a number of matters. Some of these matters
are required by the Companies Act 2006 to
be reported on by exception only.
Which TWO of the following are reported
on by exception only?
22 Which of the following is NOT an inherent Insufficient segregation of duties
limitation of internal control systems?
23 Which of the following controls of a sales Good despatched notes are matched to
system ensure that all goods despatched are sales invoices
completely and accurately invoiced?
24 ISA 315 Identifying and Assessing the Risks Human resource policies and practices
of Material Misstatement through
Understanding the Entity and Its
Environment sets out the five components of
internal control. Which of the following is
NOT set out as a component of internal
control within ISA 315?
25 Which of the following procedures are 1 and 4
TESTS OF CONTROL an auditor should
perform in testing the inventory cycle of
their client whilst attending the inventory
count?
(1) Observe whether the client’s staff are
following the inventory count instructions
(2) Review inventory present in the
warehouse for evidence of damage or
obsolescence
(3) Obtain 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 management’s
inventory count instructions
26 An effective internal control system FALSE
provides the auditor with absolute assurance
that control objectives have been achieved
27 Which of the following methods of Internal control questionnaire
recording an accounting and controls system
is a series of questions used to determine
whether controls exist which meet specific
control objectives?
28 One of the control objectives of the sales Credit limits are checked before sales
system of ABC Co is to ensure that goods orders are accepted.
and services are sold to credit-worthy
customers. Which of the following control
activities would assist ABC Co in achieving
this objective?
29 Which of the following controls helps to 1 and 3
ensure that payroll payments are only made
to bona fide employees?
(1) Personnel records maintained for all
employees
(2) Comparison of bank transfer listing with
payroll
(3) Segregation of duties between staff
involved in human resources and payroll
functions
(4) Reperformance of the calculation of a
sample of payroll deductions
30 Which of the following is not a test of Agreement of the cost of non-current
control? asset additions to purchase
documentation
31 The draft financial statements of ABC Co 156 days
show the following information:
Revenue 840
Cost of sales 540
Gross profit 300
Trade receivables 360
Trade payables 260
What is the receivables collection period?
CHAPTER 5:
STT câu hỏi đáp án
1 ISA 315 states that an internal control Information system
system in an organisation consists of five
components: the control enviroment, the
entity's risk assessment process, the
information system, control activities and
monitoring of controls.
the component which it illustrates:
The process of preparing the financial
statements.
2 ISA 315 states that an internal control Control activities
components: the control enviroment, the
the component which it illustrates:
Locking the inventory storeroom.
3 In each of the following three cases, select Control risk is lower than normal
whether control risk is higher or lower than
normal.
The company has an established and well
resourced internal audit function
normal.
The company has a history of reviewing
financial performance on a regular basis at
board level
5 In each of the following three cases, select Control risk is higher than normal
normal.
Purchase invoices are not authorised prior
to payment
6 Which THREE of the following statements Listed companies are required to have
about audit committees are correct? an audit committee, Audit committees
are considered to be good practice for
all large companies, Audit committees
are an important aspect of a company's
control enviroment
7 According to ISA 315 which THREE of the The attitude of the directors to internal
following are respects of an entity's control controls, The awareness of internal
environment? control issues in the company, The
actions of senior management in
relation to internal control
8 For each of the following internal controls, Human error

which is the principal limitation?
The preparation of a bank reconciliation
9 For each of the following internal controls, Collusion

which is the principal limitation?
Segregation of duties in a sales system
10 Which ONE of the following is not part of Report the process to the auditors
an entity's risk assessment process?
11 For each of the following statements, select FALSE
the information system in a company.
The information system companies only
the IT system in a company
12 For each of the following statements, select TRUE

the information system in a company.
The information system includes the
process of preparing the financial
statements, such as the production of
journals
13 The following are examples of internal Physical control

controls which operate at ABC plc.
For each example, select the type of control
activity which it illustrates: The financial
controller counts petty cash on a monthly
basis
14 The following are examples of internal Physical control
controls which operate at ABC plc.For
each example, select the type of control
activity which it illustrates: There are two
keys to the locked finance department safe:
one held by the finance director and the
other by the managing director
15 The following are examples of internal Information processing

controls which operate at XYZ plc.
activity which it illustrates: The controller
reconciles the receivables ledger to the
receivables control account montly
16 The following are examples of internal Segregation of duties

controls which operate at XYZ plc.
activity which it illustrates: The receivables
ledger clerk posts invoices to the
receivables ledger. The cash book clerk
posts cash receipts to the receivables ledger
17 The following are examples of computer General

controls which operate at PQ plc.
For the example, select the type of
computer control which it illustrates:
Storing extra copies of programs and data
files off-site
18 The following are examples of computer Application
Programmes to check data fields on input
transactions
Manual checks to ensure that input data
was authorised
20 Which one of the following would be the Narrative notes
simlpest way of recording a
straightforward system not subject to a
great deal of change annually?
21 Which Three of the following would be the The company's procedures manual,
best sources of information about a The internal audit function's system
company's systems? notes, Inquiries made of company staff
22 Most entities make use of IT systems for Cyclical reviews of all master files
financial reporting and operational
purposes. Controls operating in an IT
environment can be split into general
controls and application controls.
Which ONE of the following is an
application control?
23 Which TWO of the following represent Lack of understanding of the purposes

inherent limitations of a system of internal of controls, The possibility that staff
control? members will collude in fraud
24 Which TWO of the following are A bank reconciliation signed by the

authorisation control activities finance director, A cheque payment
run approved by the finance director
25 Which regards to internal control systems FALSE

in small entities, select whether each of the
following statements is true or false:
Smaller companies are more likely to be
successful in the implementation of
segregation of duties controls
26 Which regards to internal control systems TRUE

in small entities, select whether each of the
following statements is true or false:
Management override is more likely to take
place in smaller companies
27 ISA 315 states that an internal control Control environment
components: the control environment, the
monitoring of controls. For each of the
following examples select the component
which it illustrates: Training programme
for all staff
28 ISA 315 states that an internal control Control activity

the component which it illustrates: Review
of actual performance against budget

the limitations of a system of internal
control.
The cost of implementing controls may be
more expensive than the cost of any
potential risk arising

control.
The effectiveness of many controls rely on
the integrity of those applying them
control.
Internal controls are only applied to
material items
control.
Standard controls may not be designed to
deal with unusual transactions
business risk:Business risk is the risk
inherent to the company in its operations.

business risk:
Business risk is of no relevance to the
auditor. The auditor is only concerned with
audit risk
business risk:
Management are responsible for
identifying and controlling business risks
36 One of the five elements of internal Management's review of whether bank

controls is monitoring of controls. reconciliations are being prepared on a
Which TWO of the following are activities timely basis, Internal auditor's
which would be used to monitor controls evaluation of whether the sales team
are following company policy
regarding customer discounts
37 The following are examples of internal Information processing

For example, select the type of control
activity which it illustrates: The financial
controller reconciles the payables ledger to
the payables ledger control account on a
monthly basis
38 The following are examples of internal Segregation of duties
activity which it illustrates: The payables
ledger clerk posts invoices to the payables
ledger. The cash book clerk posts cash
receipts to the payables ledger
39 The following are examples of computer General

controls which operate in the payroll
system at ABC Ltd.For example, select the
type of computer control which it
illustrates: Password protection limiting
access to data
system at ABC Ltd.
For example, select the type of computer
control which it illustrates: Range checks
on payroll processing
system at ABC Ltd.
For example, select the type of computer
control which it illustrates: Manual checks
to ensure that timesheets are authorised
before details are processed
42 Which ONE of the following is NOT a Procedures for resubmission of

general control? rejected data
43 ABC plc is large organisation with a Flowcharts
complex accounting and information
system. Critical to an understanding of the
system are the reporting lines and
relationships between different
departments.
In this situation which ONE of the
following methods is most likely to be used
by the auditor to record the system of
document flow?
normal:
(1) The paybles ledgers is not regularly
reconciled to the payables ledger control
account
normal:
(2) Management often override internal
controls
normal:(3) Entry to the inventory
storeroom is only for authorised personnel
47 Which TWO of the following are reasons Minimising business risks, Complying
why organisations need to have effective with laws and regulations
systems of control?
To assist the organisation in
48 An effective system of internal control Authorisation of transactions, Custody

requires segregation of basic functions. or handling of assets, Recording of
Which THREE of the following functions transactions
should ideally be segregated?
49 An audit committee is a committee with Non-executive directors only

responsibility for audit related matters.
Which ONE of the following should be
members of an audit committee?
50 ISA 315 states that an internal control Control environment

the component which it illustrates: The
entity's organisational structure
51 ISA 315 states that an internal control Monitoring of controls.
the component which it illustrates: Review
by management of monthly bank
reconciliations
52 The following are examples of internal Authorisation
controls which operate at ABC Ltd. For
example, select the type of control activity
which it illustrates: The financial
accountant signs the bank reconciliation,
which has been prepared by a member of
his staff.
53 The following are examples of internal Performance review

controls which operate at ABC Ltd.
activity which it illustrates: The finance
director compares monthly expenditure on
consumables to budgeted expenditure
54 Most entities make use of IT systems for Authorisation of data for input
financial reporting and operational
purposes. Controls operating in an IT
environment can be split into general
controls and application controls.
Which ONE of the following is an
application control?
55 Which TWO of the following will reduce User selection of passwords,

password effectiveness as a means of Displaying the password on screen
restricting access to a computer system?
BỔ SUNG:
STT CÂU HỎI TRẢ LỜI
1 Julia, an audit junior, has been asked to test the Proves completeness
completeness of certain items in the income statement. He
has carried out the following test.
For the following test, seclect whether that test proves the
assertion of completeness or not: Tracing a sample of
goods rececived notes to payables ledger and financial
statements.
2 Julia, an audit junior, has been asked to test the Does not prove
completeness of certain items in the income statement. He completeness
assertion of completeness or not: Tracing a sample of
entries on the payroll to individual HR records
3 Julia, an audit junior, has been asked to test the Proves completeness
completeness of certain items in the income statement. He
assertion of completeness or not: Analytical procedures
on revenue figures, budget v actual and actual current
year v actual previous year.
4 Peter, an auditor junior, has carried out the following tests Proves valuation
to verify the valuation of inventory in the financial
statements of ABC plc.
Select whether the test proves the assertion of valuation
or not: Comparing cost in a number of inventory items to
sales invoices subsequent to the year end
5 Peter, an auditor junior, has carried out the following tests Does not prove
to verify the valuation of inventory in the financial valuation
statements of ABC plc.
Select whether the test proves the assertion of valuation
or not: Attending the inventory count and carrying out
sample counts on a number of items
6 Smith is considering the preliminary audit strategy for the Rely completely on
following new audit clients whose principal characteristic substantive procedures
are set out below.
Select whether Smith would be likely to rely on internal
controls or to rely completely on substantive procedures:
Client A has recently been incorporated and is
experiencing rapid growth. It is in the process of
recruiting a financial controller
7 Smith is considering the preliminary audit strategy for the Rely on internal
following new audit clients whose principal characteristic controls
are set out below.
Select whether Smith would be likely to rely on internal
controls or to rely completely on substantive procedures:
Client B is an established company with well -
documented systems and controls. It has an internal audit
function whose principal activity is to monitor the
implementation and effectiveness of existing controls
8 Two types of procedures used in gathering evidence are Test of control
test of controls and substantive procedures.
Select the type of procedure illustrated: Observing an
organisation's despatch procedures
9 Two types of procedures used in gathering evidence are Test of control
Select the type of procedure illustrated: Examining the
instructions issued by an organisation for its year-end
physical inventory count
10 Two types of procedures used in gathering evidence are Substantive procedure
Select the type of procedure illustrated: Comparing this
year's sales figures to those of previous years
11 Which of the following assertions about classes of Accuracy
transactions and events for the period under audit is
defined below: 'Amounts and other data relating to
recorded transactions and events have been recorded
appropriately'.
A Cut-off
B Accuracy
C Occurrence
D Classification
12 Which ONE of the following assertions is the assurance Cut-off
provider LEAST concerned with when testing a non-
current asset balance?
A. Existence
B. Rights and obligations
C. Completeness
D. Cut-off
13 As the audit senior on the year-end audit of ABC Co, you Occurrence
have instructed the audit junior to obtain and inspect
supporting sales contracts for large sales transactions.
Which of the following assertions are you seeking to test
with this audit procedure?
A Cut-off
B Accuracy
C Occurrence
D Completeness
14 Is the following statement regarding direct confirmation False
of accounts receivable true or false? The verification of
trade receivables by direct confirmation provides
evidence that the debts are recoverable.
15 Is the following statement regarding audit evidence true True
or false? Appropriateness is the measure of the quality of
audit evidence.
16 Which TWO of the following assertions is the auditor 2 và 4
most conserned with when testing property, plant and
equipment?
(1) Occurrence
(2) Existence
(3) Classification
(4) Rights and obligations
(5) Accuracy
17 Direct confirmation of trade receivables provides 1 và 3
evidence in respect of which TWO of the following
assertions?
(1) Existence
(2) Valuation
(3) Rights and obligations
(4) Completeness
(5) Occurrence
18 The auditor of M Co has agreed a sample of non-current Completeness
assets selected by physical inspection back to the non-
current asset register. For which of the following
assertions does this test provide assurance?
A Completeness
B Existence
C Rights and obligations
D Accuracy and valuation
19 Seclect which financial statement assertion would be Valuation
affected: Due to the miscalculation of cost, some
inventory items have been included at cost when net
realisable value is lower.
A. Completeness
B. Valuation
C. Cut - off
20 Seclect which financial statement assertion would be Completeness
affected: Inventory items were excluded from the total in
the financial statements in error
A. Completeness
B. Valuation
C. Cut - off
21 Which of the following is the key assertion with which Completeness
auditors are concerned in relation to payables?
A. Completeness
B. Existence
C. Accuracy
D. Disclosure
22 Which of the following financial statement assertions will Completeness
be supported by a sample check on the numerical
sequence of despatch notes and invoices
A. Allocation
B. Occurrence
C. Completeness
D. Valuation
23 Which of the following describes how an assurance Trace an entry in the
provider would check the existence assertion for a non- non - current asset
current asset? register to the physical
item
24 Which of the following techniques is generally accepted Confirmation
to be the most efficient to obtain evidence regarding the
existence of bank balances?
25 Which of the following NOT should be included in an Results of previous
audit engagement audits
26 Which of the following statements is/are true with respect 1 và 2
to analytical procedures?
(1) Analytical procedures can be used throughout the
audit.
(2) Analytical procedures must be used as risk assessment
procedures.
27 Which TWO of the following procedures are MOST 2 VÀ 3
appropriate to confirm the valuation of trade
receivables?
(1) Review of the receivables ledges
(2) Direct confirmations with customers
(3) Review of cash paid after date
(4) Review of sales invoices
28 Which of the following audit procedures would provide Tracing test counts
the auditor with evidence of completeness of inventory? performed at the
inventory count to the
detailed inventory
listing
29 Which two of the following would be classified as 3 và 4
substantive procedures?
(1) Tests of control
(2) Walk-through tests
(3) Analytical procedures
(4) Tests of details
30 Which of the following statements is/are true regarding D Neither 1 nor 2
direct confirmation of accounts receivable?
(1) Responses from the customer must be returned
directly to the client.
(2) Under the positive method the customer only replies if
the amount stated is agrees with the customer's records.
A (1) only
B (2) only
C (1) and (2)

D Neither (1) nor (2)
31 2 và 3
Which TWO of the following substantive procedures
provide evidence over the existence of trade receivables?
(1) Agreeing a sample of goods despatched 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 accounts
32 Which ONE of the following is the reason why the It requires the customer
positive method of confirming receivables balances with to reply giving or
customers is generally preferred? confirming or
disagreeing with the
balance
33 Which of the following procedures should be undertaken Obtaining direct
to confirm the existence of cash at bank? confirmation of the
bank balance from the
client's bank
34 The auditor of ABC Co is performing audit procedures to Inspection of vehicle
confirm the company's ownership of motor vehicles. registration documents
Which of the following would provide the most
persuasive evidence of this?
35 Which of the following is NOT a responsibility of the To express an opinion
auditor on the company’s going
concern status
36 Which of the following is a substantive audit procedure Recalculate a sample of
for wages and salaries? payroll deductions such
as employment taxes to
confirm accuracy
37 Select a sample of
Which of the following substantive procedures assets included in the
provides evidence over the existence of non-current non-current asset
assets? register and physically
verify them at the client
premises
38 Which TWO of the following are reasons why sales are of 2 VÀ 3
verified by testing the internal controls in place over
sales?
(1) There are usually too many individual transactions
to test them individually
(2) Sales constitute a high volume of similar
transactions which are suitalbe for controls testing
(3) Controls over sales in a company are often strong
(4) Because there are so many individual transactions,
there is a significant risk that sales are misstated
39 Which TWO of the following procedures would provide 1 VÀ 3
evidence of rights and obligations of motor vehicles?
(1) Vouching a sample of motor vehicles in the asset
register to regitration documents
(2) Physical inspection of motor vehicles
(3) Review of purchase invoices for motor vehicles
acquired in the period
(4) Confirmation that calculations on the non-current
asset schedule are correct in respect of motor
vehicles
40 Which THREE of the following are reasons why the 2,3,4
auditors might seek direct confirmation of balance due
from suppliers?
(1) To obtain third party evidence
(2) The auditors suspect that the client is intentionally
understated payables
(3) The internal controls relating to purchases are
weak
(4) Supplier statements are unavailbes
Assertions about classes of transactions and events and related disclosures for the period under
audit
(i) Occurrence – the transactions and events that have been recorded or disclosed have occurred,
and such transactions and events pertain to the entity.
(ii) Completeness – all transactions and events that should have been recorded have been
recorded, and all related disclosures that should have been included in the financial statements
have been included.
(iii) Accuracy – amounts and other data relating to recorded transactions and events have been
recorded appropriately, and related disclosures have been appropriately measured and described.
(iv) Cut–off – transactions and events have been recorded in the correct accounting period.
(v) Classification – transactions and events have been recorded in the proper accounts.
(vi) Presentation – transactions and events are appropriately aggregated or disaggregated and
clearly described, and related disclosures are relevant and understandable in the context of the
requirements of the applicable financial reporting framework.
Assertions about account balances and related disclosures at the period end
(i) Existence – assets, liabilities and equity interests exist.
(ii) Rights and obligations – the entity holds or controls the rights to assets, and liabilities are the
obligations of the entity.
(iii) Completeness – all assets, liabilities and equity interests that should have been recorded
have been recorded, and all related disclosures that should have been included in the financial
statements have been included.
(iv) Accuracy, valuation and allocation – assets, liabilities and equity interests have been
included in the financial statements at appropriate amounts and any resulting valuation or
allocation adjustments have been appropriately recorded, and related disclosures have been
appropriately measured and described.
(v) Classification – assets, liabilities and equity interests have been recorded in the proper
accounts.
(vi) Presentation – assets, liabilities and equity interests are appropriately aggregated or
disaggregated and clearly described, and related disclosures are relevant and understandable in
the context of the requirements of the applicable financial reporting framework.

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CHAPTER 1:

STT Question Answer

45 Which of the following factors influence (1) and (2)

4 Which THREE of the following statements Positive assurance will be given on a

8 For each of the following internal controls, Human error

9 For each of the following internal controls, Collusion

12 For each of the following statements, select TRUE

13 The following are examples of internal Physical control

15 The following are examples of internal Information processing

16 The following are examples of internal Segregation of duties

17 The following are examples of computer General

23 Which TWO of the following represent Lack of understanding of the purposes

24 Which TWO of the following are A bank reconciliation signed by the

25 Which regards to internal control systems FALSE

26 Which regards to internal control systems TRUE

28 ISA 315 states that an internal control Control activity

29 For each of the following statements select TRUE

30 For each of the following statements select TRUE

34 For each of the following statements select FALSE

36 One of the five elements of internal Management's review of whether bank

37 The following are examples of internal Information processing

39 The following are examples of computer General

42 Which ONE of the following is NOT a Procedures for resubmission of

48 An effective system of internal control Authorisation of transactions, Custody

49 An audit committee is a committee with Non-executive directors only

50 ISA 315 states that an internal control Control environment

53 The following are examples of internal Performance review

55 Which TWO of the following will reduce User selection of passwords,

C (1) and (2)

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