Audit Pertemuan 2

Which of the following statements, relating to International Standards on Auditing (ISAs), if any, is/are correct?

(1) International Standards on Auditing (ISAs) are issued by the International Accounting Standards Board (IASB) and provide guidance on the performance and conduct of an audit

(2) In the event that ISAs differ from local legislation in a specific country, auditors must comply with the requirements of the ISAs

• 1 Only

• 2 Only

• Both 1 and 2

• Nether 1 nor 2

Answer explanation

Statement 1 is incorrect as ISAs are issued by the International Auditing and Assurance Standards Board rather than the IASB who issue accounting standards. Statement 2 is incorrect as ISAs do not override local legislation.

Can IFAC enforce ISAs on local country regulation

• NO

• Yes

1. IFAC is able to enforce its standard

2. Countries have no say in setting their own standards or modifying them to suit their needs.

• both statements are true

• both statements are false

• statement 2 is false

• statement 1 is false

What do professional bodies do to help regulate auditing?

• Maintain competence

• Write their own Auditing standards

Self regulation can be criticised due to a lack of _________?

• Due Care

• Independence

1.The government may establish rules and procedures to do all the work the regulatory bodies do now.2.Normally an external auditor has to be a member of an appropriate ‘regulatory body’, such as the ACCA.

• both statements are false

• statement 1 is false

• statement 2 is false

• both statements are true

What Does Professional Body such as ACCA do?

• Make sure the competence is maintained

• Make sure their members use appropriate technical standards

• Offer professional qualifications

• all of the choices

Can an auditor be an employee of the company being audited?

• Affirmative

• Negative

Which of the following is not considered a right of the appointed auditor?

• All explanations and information to be provided

• demand an unreasonable audit fee

• Unfettered access to company’s books and records

• Right to be heard at all such meetings on matters of concern to the auditor

Is a specified notice period needed to remove an auditor?

• Yes

• No