Exam Questions 2

Question 1

Give 2 dates that working papers should contain.

Answer 1

• The date the work was carried out
• The date the work was reviewed

Question 2

Should the filling be included within the current audit file, the permanent audit file or both?

1. Engagement letter
2. Audit plan
3. Management review notes
4. Communication with experts
5. Audit file review notes
6. Management accounts
7. Audit strategy documents
8. Written representation from management
9. Accounting system notes

Answer 2

• 1, 9. → Permanent audit file
• 2, 3, 4, 5, 6, 7, 8. → Current audit file

Question 3

When must analytical procedures be used?

Answer 3

• At risk assessment procedures
• During the overall review stage of an audit

Question 4

What type of test is text data?

Answer 4

Test of controls

Question 5

Is a sample of confirmation requests from client balanced more appropriate for receivables or payables?

Answer 5

Recievables

Question 6

Give 2 things that provide good quality evidence conserning the net realisable value of inventory.

Answer 6

• Post year end sales invoices
• Post year end sales price list

Question 7

What is more realiable, a bank statement or bank letter?

Answer 7

Bank Letter → as it is sent directly to the auditor