Quiz 1

What are the companies whose annual financial statements are required to be audited by external auditors in Vietnam?

• Foreign direct investment, financial institution, Public/listed interest entities and private owned enterprises.

• Financial institution, Public/listed interest entities, Insurance enterprises and foreign direct investment.

• Public/listed interest entities, Insurance enterprises, start-up entities and foreign direct investment.

What is the objective of an external audit engagement from perspective of an auditing firm?

• To obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement

• To obtain sufficient appropriate evidence in order to expresses a conclusion designed to enhance the degree of confidence of the intended users.

• To enable the auditor to express an opinion on whether the financial statements are prepared, in all material respects, in accordance with an applicable financial reporting framework.

  What are the possible types of the auditor’s opinion?

 

1.       Unmodified audit opinion

2.       Plurality opinion

3.       Qualified audit opinion

4.       Emphasis of matter

5.       Majority opinion

6.       Disclaimer

7.       Adverse opinion

Concurring opinion

• 1,3,5,7,8

• 1,3,4,6,7

• 2,4,5,6,8

• All of the above

What should be documented in auditors’ working papers when implementing the activities?

• Attach all supporting documents

• Audit opinion

• Objective, finding, work done and conclusion.

Professional skepticism is an attitude that includes:

• Be well-equipped, professional judgement and hard working.

• Perform sufficient audit procedures in accordance with Vietnamese Standards on Auditing.

• A questioning mind, critical assessment of audit evidence.

• Dedicated, qualification and technical knowledge.

_____ is the mistake or change in input value in a financial statement if it changes the decision making for the user.

• Threshold

• Materiality

•      Performance materiality

   

• Analysis

The difference (relative or absolute) from the actual value above which a misstatement is required to be corrected is called _____.

• analysis

• materiality

• negligence

• threshold

A company is selling 20,000,000 units at $2.00. What is the revenue materiality amount if the general threshold is set at 5%?

• $500,000

• $4,000,000

• $1,000,000

• $2,000,000

Which of the following primary assertions is satisfied when an auditor observes the entity’s physical count of inventory?

• Valuation.

•     Completeness.

• Existence.

• Rights and obligations.

One of the main objectives of performing analytical procedures during the planning phase of the audit is to identify:

• Transactions that have not been properly authorized

• Non-compliance with laws undetected as a result of poor internal controls

• Inefficient operations

• Unusual changes that may signal possible account misstatements