Auditing > QUESTION PAPER (QP) > AT-06:FSAUDITPROCESS-PRE-ENGAGEMENT | Download for quality grades | (All)

AT-06:FSAUDITPROCESS-PRE-ENGAGEMENT | Download for quality grades |

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1. Evaluate the following statements: I. Audit planning precedes conclusion and reporting. II. Audit planning precedes substantive testing. Which is/are true? A. I only B. II only C. Both I and ... II D. Neither I nor II 2. Which of the following is/are considered in deciding whether to accept a new client or not? I. Firm’s competency to perform the engagement and ability to comply with relevant ethical requirements II. Client’s integrity including its standing in the business community and financial ability III. Integrity of predecessor auditor A. I only B. II only C. Both I and II D. I, II, and III 3. Evaluate the following statements: I. A successor auditor should make specific inquiries of the predecessor auditor regarding disagreements which the predecessor had with the client concerning auditing procedures and accounting principles II. If a client refuses to permit the predecessor to respond to the successor’s inquiry, then the successor auditor should inquire as to the reasons for such refusal and consider the implications of this in deciding whether to accept the engagement or not. A. I only B. II only C. Both I and II D. Neither I nor II 4. Where the client is changing auditors, PSA requires communication between the predecessor and successor auditors. The burden of initiating the communication rests with: I. The client II. The predecessor auditor A. I only B. II only C. Both I and II D. Neither I nor II 5. Evaluate the following statements: I. Independence must be considered in deciding whether to accept a company as an audit client. II. Only partners and managers are required by the Code of Ethics to be independent from their assurance clients. Which is/are true? A. I only B. II only C. Both I and II D. Neither I nor II 6. Evaluate the following statements regarding enhancing auditor’s independence [Show More]

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