#1 The use of an audit engagement letter is the best method of assuring the auditor will have which of the following?
Auditor will obtain sufficient appropriate audit evidence
Management representation letter
Access to all books, accounts and vouchers required for audit purpose
Cooperation from other auditors
#2 An auditor who accepts an audit but does not possess the industry expertise of the business entity should
obtain knowledge of matters that relate to the nature of entity’s business
inform management about it
take help of other auditors
#3 The least important element in the evaluation of an audit firm’s system of quality control would relate to
assignment of audit assistants
system of determining audit fees
consultation with experts
confidentiality of client’s information
#4 The primary purpose of establishing quality control policies and procedures for deciding on client evaluation is to
ensure adherence to generally accepted auditing standards
acceptance or retention of clients whose management does not lack integrity
ensure audit fees is charged according to the type of audit work assigned
all of the above
#5 Which of the following is not a quality control consideration on accepting a new client?
Availability of audit assistants with necessary skill and competence.
Provision of other services to the client which may impair independence
Predecessor auditor’s advice as to whether audit fees were paid promptly
Review of audit work done by one partner by the other
#6 An auditor obtains knowledge about a new client’s business and its industry to
Make constructive suggestions concerning improvements to the client’s internal control system.
Evaluate the appropriateness of audit evidence obtained
Under stand the events and transactions that may have an effect on client’s financial statements
All of the above