DPA40123 Audit 1 Pop Quiz T4

What the reason an auditor plan their audit works?

• Become the only auditor to complete the works.

• Allow all area will be audited.

• To reduce the audit fee.

• To immediately identify problems.

Who responsible in issuing the engagement letter?

• Auditor

• Client

• Bank

• Creditor

The following are the issues and relevant consideration during audit planning, EXCEPT.....

• Going Concern Issues

• Identify related parties

• Law & regulation involved

• Audit Fee

Risk that auditor may express an inappropriate audit opinion.

(a)  

The following are concepts of materiality, EXCEPT

• Amount is immaterial

• Amount is material but not pervasive

• Amount is material and pervasive

• Amount is material

What is types of audit risk that related to FLOOD?

(a)  

Identify the methods to understand client's business risk below:

Interview human resource (HR) personnel about payroll

• Tour the plant and office

• Inquiries of the client's personnel

• Identify related parties

• Memorandom & article of association

The following are an example relating to the factors that influence the determination of materiality, EXCEPT.....

• Petty cash as threshold of materiality level

• All companies have same materiality level

• Fraud in the revenue account

• Income decrease to 1% from 5%