Choose and explain

Q$1)$ How does the auditor check the receivables from issuing shares?$$

a$.$ Compare stock issuance transactions with the money collection$$

b$.$ Check the record of the proceeds on the relevant books$$

c$.$ In case the capital contribution is a freely convertible foreign currency, gold, the auditor must pay attention to check the reasonableness of the asset valuation, and the approval of the Board of Directors.$$

d$.$ Both a$,$ b$,$ c are correct answers$$

Q$2)$ When auditing equity, although mainly applying basic tests, auditors also need to learn the basic features of internal control for this capital, such as:$$

a$.$ Review for recording equity transactions;$$

b$.$ Are balances of equity accounts checked periodically by the chief accountant?$$

c$.$ Both a and b are correct answers$$

d$.$ Both a and b are incorrect answers$$

Q$3)$ The inspection of original documents of employees increasing or decreasing equity in the period is to consider:$$

a$.$ The validity of transactions, check whether spending transactions have actually happened or not$$

b$.$ Whether the transactions are reviewed by competent authorities in the unit or not$$

c$.$ Are transactions recorded in accordance with current accounting standards and regime or not$$

d$.$ All $3$ statements are correct$$

Q$4)$ When auditing equity, auditors mainly perform basic tests for each transaction arising in the period to ensure:$$

a$.$ Accuracy and objectivity of these transactions$$

b$.$ The accuracy and validity of these transactions$$

c$.$ The validity and objectivity of these transactions$$

d$.$ All $3$ statements are correct$$

Q$5)$ Check the presentation and equity announcement, what issues should the auditor pay attention to:$$

a$.$ Equity items must be presented separately for each category on the TAs

b$.$ The entity must publish the fluctuations of equity in the Notes to the financial statements$$

c$.$ Both a and b are correct answers$$

d$.$ Both a and b are incorrect answers$$

Q$6)$ Based on the detailed list of equity accounts, the auditor checks the calculation and compares the total with:$$

a$.$ Ledger$$

b$.$ Accounting balance sheet$$

c$.$ Business Report$$

d$.$ All $3$ statements are correct$$

Q$7)$ The main contents of the internal control of equity capital of a joint stock company are:$$

a$.$ Approval for the correct operations of the Board of Directors$$

b$.$ The division of responsibility is done through the use of custody and transfer services$$

c$.$ Maintain a complete bookkeeping system$$

d$.$ All $3$ statements are correct

Q$8)$ Indicate the assertions to be satisfied when auditing the equity items in each of the following substantive tests.

a$.$ Prepare and send letters of confirmation of capital contribution to capital contributors$/$shareholders$.$ Summarize the results received, compared with the balances on the detailed book. Explain differences $($if any$).$

b$.$ Check the applicable exchange rate in case of capital contribution in foreign currency;

c$.$ Examine the calculation and allocation of exchange rate differences during the period and at the balance sheet date on the basis of current accounting standards and regimes, and evaluate the reasonableness of the recognition and distribution policies. foreign exchange difference during the year.

d$.$ Check the classification and presentation of equity, exchange rate difference, asset revaluation difference, funds and undistributed profit in the financial statements.