1. Third party verifcation as an acceptable substantive audit procedure was as a result of which of the following cases?

• London and General Bank Case

• Royal Bank of Scotland v Bannerman Johnstone Maclay

• City Equitable Fire Incurance Co

• Capari v Dickman

2. The subject matter that is referred to in the audit assurance engagement includes:

1. financial statements
2. accounting standards
3. audit evidence

• 2 only

  2 only

• 1 and 3 only

  1 and 3 only

• 1, 2 and 3

  1, 2 and 3

• 1 only

3. Which of the following statements best describes the conceptual framework approach to ethics?

• a set of rules which must be followed in all circumstances

  a set of rules which must be followed in all circumstances

• a set of principles which the auditor applies at their discretion

  a set of principles which the auditor applies at their discretion

• a set of principles which the auditor applies based on professional judgement

  a set of principles which the auditor applies based on professional judgement

• the conceptual framework is set out in company law

4. The prevention and detection of fraud and errors was clearly outlined as not a part of the auditor's duties and responsibilities in which of the following cases?

• Kingston Cotton Mills

  Kingston Cotton Mills

• London and General Bank case

  London and General Bank case

• Newton v Birmingham Small Arms Co

  Newton v Birmingham Small Arms Co

• Royal Mail Steam Packet Co

  Royal Mail Steam Packet Co

5. The scope of standards on auditing includes compliance with specific laws and regulations. ?

• True

• False

6. A member was found guilty of ethical misconduct by failing to respond to the professional clearance requests from another audit firm. This is a breach of which fundamental principle?

• independence

  independence

• professional competence and due care

  professional competence and due care

• integrity

  integrity

• professional behaviour

7. JP Auditors & Accounting Est. signs an engagement letter before starting the audit of Halifax Hardware because of the following reasons except:

• this is a documentary evidence of the confirmation of the audit engagement

  this is a documentary evidence of the confirmation of the audit engagement

• it helps to minimise the risk of misunderstanding

  it helps to minimise the risk of misunderstanding

• the terms and conditions of the agreed upon audit engagement are made clear

  the terms and conditions of the agreed upon audit engagement are made clear

• the details of the audit opinion are clearly stated