AUDITING MATERIAL REVIEW

(Openbook)
Read the questions carefully and choose the most appropriate answer A, B, C, or D!

1. Services provided by a public accounting firm in gathering and evaluating evidence to

support giving an opinion on the fairness of a client's financial statements in accordance
with generally accepted accounting principles in Indonesia known as:
A. Non Assurance Services
B. Attestation Services
C. Assurance Services
D. Compilation Services
2. The stages of an audit of financial statements are, except:
A. Acceptance of the audit engagement
B. Audit planning
C. Implementation of audit tests
D. Implementation of audit results meeting
3. The followings are aspects of the auditors independence except :
A. Be honest without compromising client confidentiality
B. Fair
C. Have professional skills
D. Not taking sides
4. Substantive testing is carried out by the auditor for:
A. Testing for errors in financial statement balances
B. Determine the effectiveness of internal control
C. Determine the achievement of audit objectives related to transactions
D. Look at the comparison with the previous year's figures
5. For each engagement, the auditor must establish a common understanding with the client
regarding the services to be provided which is usually communicated in the form of:
A. Management Representation Letter
B. Engagement Letter
C. Independent auditor's report
D. Annual finance report
6. The planning audit stage includes, except:
A. Understand the client's industry
B. Assess the client's business risk
C. Designing an audit program
D. Perform substantive tests
7. An example of inherent risk is
A. The auditor applied inappropriate audit procedures
B. Material misstatements cannot be detected by the company's internal control system
C. The possibility of errors that occur due to the account has a complicated calculation
D. There is no right answer

8 . Public Accountant Professional Standards are prepared and determined by:

 A. IASB
B. IAPI
C. GAAS
D. AICPA
9. Which of the following is most special (unique) with respect to the audit work performed
by an auditor when compared to the work performed by practitioners of other professions?
A. Professional skills
B. Competence
C. Independence
D. Professional
10. The following is the current file in the Audit Working Papers, except:
Current File >< Permanent File
A. Trial balance
B. Receivable Details
C. Cost breakdown
D. Deed of establishment
11. In what cases should the auditor identify and assess the risks of material error?
A. Financial report level
B. Entity
C. Entity operational level
D. Compliance with laws and regulations
12. Which of the following stages of the audit is correct?
A. Planning - Field work - Control tests - Report preparation
B. Client understanding - Risk determination - Control tests - Analytical procedures -
Walkthrough
C. Planning - Testing of controls - Field work - Preparation of audit reports
D. Audit risk assessment - Substantive test - Preparation of audit program - Preparation of
reports
13. A letter made by a Public Accounting Firm (KAP), addressed to the management of the
company whose financial statements were examined (audited), the contents of which
notify the weaknesses of the company's internal control found during the audit,
accompanied by suggestions for improvement from the KAP are called :
A. Audit Contract
B. Management representation letter
C. Engagement Letter
D. Management Letters
14. The primary purpose of the auditor performing tests of controls is to:
A. Obtain a reasonable level of assurance that the client's internal controls are operating
effectively and consistently over a full year
B. Obtain sufficient and sufficient audit evidence to provide an adequate basis for the
auditor in forming an opinion without requiring additional evidence
C. Ensuring that the disclosures in the financial statements are adequate
D. Understand client methods and procedures
 15. At the stage of acceptance of the audit engagement, which are not activities carried out
by the auditor:
A. Assess the auditor's ability to perform the audit work
B. Understand the client's business
C. Identifying the integrity of management
D. Evaluate the independence of the auditors
16. Materiality can be classified into:
A. Materiality at the financial statement level
B. Materiality at the account balance level
C. Materiality at the financial statement level and materiality at the account balance level
D. There is no right answer
17. Explain the relationship between materiality and audit evidence!
A. The lower the level of materiality, the less amount of evidence required
B. The lower the level of materiality, the greater the amount of evidence required
C. the higher the level of materiality, the higher the audit risk
D. the higher the level of materiality, the lower the audit risk
18. The following is the analysis made by the auditor in the Audit Working Papers, except:
A. Management Letters
B. Confirmation from the Bank = the company send confirmation to the bank
C. Working Balance Sheet
D. Top Schedule
19. The level of reliability of audit evidence from the highest to the lowest is:
A. Physical Evidence, Confirmation Evidence, Analytical Evidence
B. Mathematical Evidence, Analytical Evidence, Physical Evidence
C. Analytical Evidence, Physical Evidence, Hearsey Evidence
D. Hearsay Evidence, Confirmation Evidence, Analytical Evidence
20. Which is not the purpose of making audit working papers?
A. Support the auditor's opinion
B. Reference in case of inquiries from the tax authorities
C. The basis for the auditor's assessment of a promotion
D. References for auditors at other KAP
21. The following are examples of substantive tests , except:
A. Cash opname
B. Receivable Confirmation
C. Observe control activities = control test (jawaban observe adalah contoh uju
pengendalian)
D. Reconciliation Examination
22. Tracking from source documents to accounting records is called:
A. Tracing
B. Vouching
C. counting
D. reforming
23. What is the meaning of generally accepted auditing standards that require the auditor to
act independently?
 A. The auditor must complete the work on time
B. The auditor must exercise a critical attitude during the audit
C. The only obligation of the auditor is to third parties
D. The auditor may have a direct ownership interest in the client's business
24. Which statement is not true about accounting and financial statement auditing?
A. Auditing is accumulating and evaluating evidence of financial statement information
to determine and report the suitability of that information with certain criteria
B. Accounting is the process of determining whether a transaction reflects the economic
substance that occurred
C. The objective of the audit is to determine the suitability of the financial statements in
accordance with the specified reference accounting standards
D. The audit must be carried out by a competent and independent person

25. The final stage of the audit includes:

A. Conduct a review of contingent liabilities
B. Publish audit reports
C. Gather audit evidence
D. A and B are correct

26. Audit procedures to find contingent liabilities, namely:

A. Conducting interviews with management
B. See minutes of meeting of directors and shareholders
C. Obtain written confirmation from legal counsel
D. All answers are correct

27. What is meant by subsequent events?

A. Conduct a review of events after the date of the auditor's report
B. Review events after the balance sheet date up to the date of the auditor's report
C. Reviewing events after the balance sheet date up to the next accounting period
D. All answers are wrong

28. At the audit completion stage, communication is carried out between the auditor and
management, which aims to:
A. Convey the auditor's responsibility for the audit of financial statements
B. Inform key findings during the audit to those charged with governance
C. Informing those charged with governance on matters relevant in the audit
D. All answers are correct

29. The following is the contents of the audit engagement letter, except….
A. Auditing objectives
B. Explanation of the scope of the audit and the auditor's responsibilities
C. Suggestions for company SPI
D. The basis for determining the audit fee
30. What matters are considered by the auditor in deciding whether to accept or reject an
audit engagement?
A. Management integrity
B. Ability to conduct audits
C. Independence
D. All answers are correct