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

26.

If auditors discover that the total errors found during an audit exceed the audit materiality, the auditors first step should be to:

a- resign

b-increase their fee

c-request management to amend the financial statements

d-immediately amend the financial statements

27.

A management letter given by the auditors to management:

a-Explains the internal control strengths and weaknesses found during the audit

b-Explains the internal control weaknesses found during the audit

c-Documents the terms of the audit engagement

d-Contains the audit fee quote

28.

A management letter of representation:

a-Is delivered by the CFO to the auditor for signature

b-Is delivered by the audit clients executive management to the auditor for signature

c-Is delivered by the CEO to the audit committee for signature

d-Is delivered by the auditors to management for signature

29.

Assuming a strong system of internal control, auditors can confirm a clients accounts receivable as much as :

a) 4 month before the yearend date

b) 3 months before the yearend date

c) 2 months before the yearend date

d) 1 months before the yearend date

30.

An auditor should ensure that a clients computer system has:

a)effective input and output controls

b)effective input, processing and output controls

c)effective password and virus protection controls

d)an effective disaster recovery plan