Required: Mark the correct answer (a, b, c or d ) for each of the following questions.

21.

Which of the following is not a method used to document details of an audit clients accounting system ?

a-Internal control questionnaire

b-Narrative description

c-Mangement represenation letter

d-Flowchart

22.

Internal control test results are used to determine:

a-Nature and timing of analytical procedures

b-Nature and extent of internal control procedures

c-Nature, extent and timing of substantive procedures

d-Nature, extent and timing of analytical procedures

23.

Segregation of duties in an audit clients business means that:

a-The audit partner does not do audit field work

b-The audit clients staff person who counts cash does not record cash.

c- The audit senior directs their assistants.

d-The audit firms professional staff divides their duties into weekly components.

24.

An auditor would expect that the segregation of duties in a large multi-national company, compared to a small entrepreneurial company, would normally:

a-Be a weaker source of internal control

b-Not exist at all

c-Not be considered by the auditor

d-Be a stronger source of internal control

25.

The most important reason that auditors correspond with an audit clients external lawyers during the course of an audit is:

a-To obtain audit evidence with respect to date of incorporation of their audit client

b- To obtain audit evidence concerning legal fees charged to their client

c-To satisfy requests from the audit committee

d-To obtain audit evidence concerning contingent liabilities