Sample toopics of possible questions

Question 1

What are adams smiths four canons of taxation?

Answer 1

1. Canon of Equality
2. Canon of Certainty
3. Canon of Convenience
4. Canon of Economy

CEEC

Question 2

Name the five main audit assertions and briefly describe what each one tests.

Answer 2

The Five Main Audit Assertions:
Existence — Assets, liabilities, and transactions actually exist at the period end.

Completeness — All transactions and accounts that should be included are included (nothing omitted).

Valuation and Allocation — Assets, liabilities, and transactions are recorded at appropriate amounts, including adjustments for depreciation or impairments.

Rights and Obligations — The entity owns the assets and is responsible for the liabilities.

Presentation and Disclosure — Items are properly classified, described, and disclosed in the financial statements.

CREPV

Question 3

what are the main threats to auditor indpendence? what are the safegaurds?

Answer 3

Main threats to auditor independence include:

Intimidation Threat: Pressure or threats to influence the auditor’s judgment.

Familiarity Threat: Long association with client leads to complacency or bias.

Self-Interest Threat: Financial or personal interests that could influence objectivity.

Self-Review Threat: Auditor auditing their own previous work.

Advocacy Threat: Auditor promoting client’s position or interests.

Safeguards to mitigate threats:

Rotation of audit personnel to reduce familiarity.

Independent reviews and oversight.

Strict ethical guidelines and training.

Policies limiting non-audit services to audit clients.