AUE2601 - Auditing and Assurance Principles - QUIZ
AUE2601 · Auditing and Assurance Principles
University of South Africa
Questions
10 Questions
Practice 10 questions on AUE2601 - Auditing and Assurance Principles at University of South Africa. Free AI-generated quiz on uNotes — track your score, retake anytime.
1Based on the SAICA Code of Professional Conduct, what type of threat is created when an audit partner's spouse owns 15% of an audit client's share capital?
2In the Garmax case, internal control C1 states that directors promote a culture of honesty and integrity. To which component of the system of internal control does this belong?
3Identify the three components that constitute Audit Risk.
4In the Garmax audit, the auditor selects a sample of inventory items from the ledger and physically inspects them in the warehouse. Which management assertion is primarily being tested?
5According to the Garmax case study, what type of audit opinion would be most appropriate if the total identified misstatements (R700,000) exceed planning materiality (R650,000), management refuses to correct them, and the misstatements are not considered pervasive?
6In the Evergreen Lawn Ltd scenario, the financial director appointed the auditors following a resignation. According to Section 91 of the Companies Act, who usually has the authority to fill a casual vacancy in the office of the auditor?
7A review of historical financial statements, such as the one requested by Fitbat (Pty) Ltd, provides what level of assurance?
8Which of the following are considered 'further audit procedures' in response to assessed risks of material misstatement according to ISA 330?
9If an audit manager prepares tax calculations for a client before the audit starts, which fundamental principle of the SAICA Code is most likely to be compromised?
10Which classifications can be used to describe the nature of internal controls?
