Question

7 of 19 8 of 19 O c When we test an account 9 of 19 time, etc) O c Il and O d IIl and IV

Answer 1

7. Which of the following is true with respect to integrated Audits?

Answer c. Engagement teams are required to communicate all significant control deficiencies to the audit committee.

Integrated audits involve the application of audit procedure to information technology, financial and operational controls and activities. Evaluate the overall effectiveness and efficiency of the internal control systems of the business. Engagement teams performing integrated audit should communicate all irregularities and deficiency to the audit committee for further actions.

8. In which of the following scenarios are we required to identify the What Could Go Wrongs(WCGW's) related to a process?

Answer A. When we plan to rely on the related controls

Risk assessment is to be made when we plan to rely on the related controls. Auditors should always assess risk involved in the relying on internal controls and perform necessary audit procedures to overcome such risks.

9. When preparing for client meetings, which of the following should you do in advance of the meeting?

Answer B. I and IV

I. Prepare and send a list of the planned audit procedures ( to understand the scope of the audit and make necessary adjustments if required.)

IV. Send Prior year audit documentation to the client ( to understand what audit procedure have been performed in the previous year and what additional procedures to be performed.)