AA lecture 2 regulations

What is NOT the requirement for a statutory auditor?

• Being a member of a recognised professional body.

• Holding a PhD in accounting

• Having passed examinations of a recognised body.

• Obtaining a minimum number of years of practical experience.

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

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

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

• Both

• Neither

Who approves the appointment of a company’s auditor?

• The statutory authorities

• The directors

• The shareholders

• The company’s bank

The International Auditing and Assurance Standards Board (IAASB) is a standard-setting board of which of the following?

• Organisation for Economic Co-operation and Development

• International Financial Reporting Standards Foundation

• International Federation of Accountants

• The World Bank

Which of the following is generally accepted as a right of an auditor?

• To have access to the company’s books, accounts and records

• To require from company officials any information and explanations on any matter whatsoever

• To report to any legal authority any matter the auditor considers that authority needs to know

• To attend any board or committee meeting

Which of the following statements relating to International Standards on Auditing (ISAs) and professional auditors is true?

• All ISAs must be applied during the course of the audit

• ISAs override local regulations

• ISAs are rules-based and all rules must be applied

• In most jurisdictions, only a statutory auditor is allowed to carry out audits of companies