Day 5 - Trung Van Do

Which of the following considerations below, would lead us to increase the variance threshold (increase the multiple of TE)?

• Setting TE at 75% of PM

• The account is affected by a routine SCOT and more predictable

• There is an increased likelihood of errors

• The account size is 2 x TE

Why is it important to disaggregate data? Pick the one that best applies

• Decreases the extent of our substantive test of details

• Increases the quality of evidence obtained from the SAP through more precise expectations

• The GL Analyzer provides data in more disaggregated formats and we should always be using the lowest level of disaggregated data available

When would you execute EDAP for Concluding on audit evidence obtained after substantive procedures?

• Scope and strategy phase

• Execution phase

• Conclusion phase

• B and C

An audit associate has been assigned to the audit of bank and cash balances. He has obtained the following audit evidence:

1. Bank reconciliation carried out by the cashier

2. Bank confirmation report from the bankers

3. Verbal confirmation from the directors that the overdraft limit is to be increased

4. Cash count carried out by the audit associate

What is the order of reliability of the audit evidence starting with the most reliable first?

• 4, 2, 1 and 3

• 2, 1, 4 and 3

• 4, 3, 2 and 1

• 2, 4, 1 and 3

Turnaround effect of prior period misstatements is:

• How those prior period misstatements that may affect our evaluation of the current period’s financial statements impact the current period income.

• How those current period misstatements that may affect our evaluation of the current period’s financial statements impact the current period income.

• How those current period misstatements that may affect our evaluation of the prior period’s financial statements impact the current period income.

• None of the above

Which type of misstatement never has turnaround effect?

• Factual misstatements

• Projected misstatements

• Judgement misstatements

• Reclassification misstatements

Which following documents must be archived in hard copy?

• Signed engagement letter, Confirmation letters received, Management representation letter, Issued audited financial statements.

• Signed engagement letter, Confirmation letters received, Management representation letter, Issued audited financial statements, Clearance form for FS issuance, FS Referencing form, Final casting-referencing package for FS issuance.

• Signed engagement letter, Confirmation letters received, Management representation letter, Issued audited financial statements, Clearance form for FS issuance, signed consultation memo, signed RAS form.

• Signed engagement letter, Confirmation letters received, Management representation letter, Issued audited financial statements, Clearance form for FS issuance, FS Referencing form, Final casting-referencing package for FS issuance, signed RAS form.

Which actions must be done to complete Archive form in EY Canvas?

• Clear comment in Word, Excel,….

• Unlink this engagement from the group

• Confirm accuracy of engagement code

• A,C

• B,C

Which following reasons included in the 440 Canvas form?

• Preparing management letter

• Completing form AP

• Accepting revisions when the track changes functionality was used

• All