New Staff Training - D1

What is an audit?
An audit is a systematic and __________ series of procedures performed in accordance with audit standards to obtain __________ assurance that the amount and disclosures in a company’s financial statements are free of __________ .

• Unbiased, absolute, material misstatements

• Unbiased, reasonable, material misstatements

• Independent, reasonable, material misstatements

Flow of transactions to have Financial Statements:

• Source documentation -> general ledger - > financial statements

• Source documentation -> subledger -> general ledger -> trial balance -> financial statements

• Source documentation -> subledger - > trial balance -> financial statements

Audit risk =

• Inherent risk x Control risk

• Control risk x Detection risk

• Control risk x Detection risk x Inherent risk

What are the four phases that create the framework for EY GAM?

• Scope and Strategy -> Response to risk -> Conclusion and communicate

• Initial Planning -> Identify and assess risks -> Design and execute response to risks -> Conclusion and communicate

• Scope and Strategy -> Execution -> Conclusion

• Initial Planning -> Execution -> Conclusion

Who is responsible for the financial statements?

• Auditor

• Senior and Manager

• Partner

• Company’s management

What is EY's source available to you to assist in researching the client?

• EY Knowledge homepage

• External sources – go to

• Promoting critical thinking

• All of them

How many phases and groups are there under EY GAM and EY Canvas for each audit engagement?

• 1, 3

• 2, 4

• 4, 3

• 3, 4

Please select correct statement:

• Planning materiality is the overall materiality level for the financial statements taken as a whole

• Planning materiality is at the individual account or balance level

• Planning materiality is designated at an amount below which misstatements, whether individually or accumulated with other misstatements, would not have a material effect on the financial statements

What is the purpose of PLOT?

• Supportive team culture

• Encouraging individual drive

• Promoting critical thinking

• All of them

How many type of account are there under EY GAM and what are they?

• 1 - Significant account

• 3 - Significant account, Limited risk account, Insignificant account

• 4 - Significant account, Limited risk account, Insignificant account, significant risk account

• 2 - Significant account, Limited risk account