Question

16) When deciding on the amount of evidence required to form an opinion on a particular matter, the auditor should be LEAST influenced by the: A. Source of the evidence B. Materiality of the balance being examined C. Terms of the engagement D. Time involved in obtaining the evidence 17) Who should conduct the final review stage in a statutory audit? A. Audit Manager B. Audit Junior Audit Partner 、"Audit Senior 18) Which of the following statements most fairly reflects the auditors' duty of confidentiality? A. Auditors must never under any circumstances disclose any matter of which they B. Auditors may disclose matters to third parties without their client's consent if it is in C. Auditors have a statutory duty of confidentiality in addition to the Code of Ethics for D. Auditors may disclose any matters in relation to criminal activities to the police or become aware during the audit, without the permission of the client. the public interest and they must do if there is a statutory duty to do so Professional Accountants taxation authorities if requested to do so by the police or a tax inspector 19) One of the following is NOT an explicit element of an external audit report with an unmodified opinion, according to ISA 700 Forming an opinion and reporting on financial statements A. A statement as to the going concern status of the company B. A statement that the audit was conducted in accordance with International Standards on Auditing C. A statement of the auditors' opinion as to the truth and fairness of the financial statements D. A statement of managements' and auditors' responsibilities MG 3600 Audit & Assurance Page 5 of 12

Answer 1

16. D

17. C (since final stage review)

18. A

(1. Breaching client confidentiality in matters of fraud will undermine the willingness of clients to cooperate.

2. Faced with the possibility of exposure, clients will engage in yet more devious methods to hide the fraud, which the auditors will be unable to find.

3. The damage to firms that are suspected of fraud, but later found not to be responsible, will be significant and unwarranted either as a result of the accusation.)

19. C

MCQ's questions , seems no explanation required