Tag: Topic 17

Which ONE of the following statements is correct in respect of the minimum period, as required by ICAEW, for which audit working papers must be retained by the auditor?

Select ONE answer:

1. Five years from the date of completion of the audit work
2. Six years from the date of the auditor’s report
3. Five years from the date of approval of the financial statements by the shareholders
4. Six years from the end of the accounting period to which they relate

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 – Six years from the end of the accounting period to which they relate is the ICAEW requirement.

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Which ONE of the following is NOT an advantage of automated working papers?

Select ONE answer:

1. They may result in substantial time savings
2. The risk of errors is reduced
3. The auditor does not need to apply judgment in assessing the results
4. They will be easier to review

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 – computerised audit processes cannot replace the exercise of judgement by the auditor.
4. Not correct

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Many auditors use two types of audit files: a permanent audit file and a current audit file.

For each of the following types of information, select the appropriate file in which it will be contained.

• Accounting systems notes

Select ONE answer:

1. Current audit file
2. Both
3. Permanent audit file
4. Neither

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 – The permanent audit file contains documents of ongoing relevance, whereas the current audit file contains documents and working papers that relate directly to the audit of the current year end
3. Not correct
4. Not correct

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

Many auditors use two types of audit files: a permanent audit file and a current audit file.

For each of the following types of information, select the appropriate file in which it will be contained.

• Written representation from management

Select ONE answer:

1. Current audit file
2. Permanent audit file
3. Both
4. Neither

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 – The permanent audit file contains documents of ongoing relevance, whereas the current audit file contains documents and working papers that relate directly to the audit of the current year end
2. Not correct
3. Not correct
4. Not correct

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

Many auditors use two types of audit files: a permanent audit file and a current audit file.

For each of the following types of information, select the appropriate file in which it will be contained.

• Audit strategy document

Select ONE answer:

1. Permanent audit file
2. Both
3. Neither
4. Current audit file

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 permanent audit file contains documents of ongoing relevance, whereas the current audit file contains documents and working papers that relate directly to the audit of the current year end

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