Tag: Ethics

Which one of the following best describes professional scepticism – The assurance provider should?

Select ONE answer:

1. apply a questioning mind to the information and evidence he obtains
2. not believe anything that management tells him
3. not believe anything that management tells him, without obtaining supporting evidence
4. always assume the worst outcome in cases of uncertainty

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct == > Apply a questioning mind to the information and evidence he obtains would indicate professional scepticism. The alternative options offered are all a step too far.
2. Not correct
3. Not correct
4. Not correct

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Which ONE of the following is NOT a purpose of a letter of engagement?

Select ONE answer:

1. Setting out the form of any report to be issued
2. Documenting and confirming acceptance of the appointment
3. Narrowing the expectations gap
4. Providing evidence on matters where other evidence is not expected to exist

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct == > The following are NOT purposes of an engagement letter: providing constructive suggestions to management concerning improvements to internal control & providing evidence on matters where other evidence is not expected to exist (e.g., on management plans for the future of the entity) – this is the purpose of a written representation.

This work is licensed under a Creative Commons Attribution 4.0 International License.

Which ONE of the following is NOT a purpose of a letter of engagement?

Select ONE answer:

1. Setting out the form of any report to be issued
2. Documenting and confirming acceptance of the appointment
3. Providing constructive suggestions to management concerning improvements in internal control
4. Narrowing the expectations gap

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct == >    The following are NOT purposes of an engagement letter: providing constructive suggestions to management concerning improvements to internal control & providing evidence on matters where other evidence is not expected to exist (e.g., on management plans for the future of the entity) – this is the purpose of a written representation.
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

Which ONE of the following must be included in the engagement letter?

Select ONE answer:

1. Arrangements regarding the planning and performance of the audit
2. The form of any reports
3. The auditing standards that the work will be based upon
4. The basis on which fees are computed

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct == > Arrangements regarding the planning and performance and the basis of the fee calculation are not essential to be included in the engagement letter, whereas the responsibilities of the auditor and the form of any reports must be included in the engagement letter.
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

Which one of the following correctly describes the period for which client identification documents must be kept under money laundering regulations?

Select ONE answer:

1. For a minimum of five years and until five years have elapsed since the relationship with the client has ceased
2. For a minimum of seven years and until seven years have elapsed since the relationship with the client has ceased
3. For a minimum of five years and until seven years have elapsed since the relationship with the client has ceased
4. For a minimum of seven years and until five years have elapsed since the relationship with the client has ceased

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct == > Money Laundering Regulations 2007 state that client identification documents must be kept for a minimum of five years and for five years after the relationship elapses.
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.