Advisory or partnering activities that add value and improve an organization's operations is called which

of the following?
a.

Assurance activities.

b.

Consulting services.

c.

Financing activities.

d.

None of the choices is correct.

Auditors need to aggregate all potential misstatements in a place where the audit team can assess the
materiality of misstatements. The accumulation of such information is often based on:
a.
2.

d.

Planning Materiality.

b.

Posting Materiality.

c.

Casting Materiality.

None of the choices is correct.

One difficulty that commonly arises in making materiality judgments is that the auditor's materiality
judgments at the planning stage may not be the same as those at the evidence evaluation stage,
because of which of the following?

3.

The auditor may learn certain facts during the audit that cause a change in
a. judgment.
The auditor may learn certain facts during the audit that will not cause a
b. change in judgment.
The auditor will need to update materiality levels as new information comes
to light during the audit that would have resulted in setting a different
c. materiality level.
The auditor will need to update on overall, planning, and posting materiality
d. assessment.

Under sustainability, triple bottom line reporting refers to which of the following?
a. Financial, social, and management reporting.
4.

b. Financial, management, and environmental reporting.

c. Social, management, and environmental reporting.
d. Financial, social, and environmental reporting.

Which of the following criteria should not be considered as the auditor assesses the materiality of
Internal Control Weaknesses?
a.
5.

b.

Control Environment

Volume of Transactions Affected

c.

d.

Repeatability of a Process
Performing Operational Duties

Who establishes the code of ethics for internal auditors?

a.
6.

GAAS

b.

AICPA
c.

SOX
d.

IIA

The most prominent reporting guideline for sustainability report is which of the following?
a. Global Reporting Initiative Reporting Framework (G3).
7.

b. Sustainability Benchmark Index Reporting Framework (SBI).

c.

Environmental Reporting Initiative (ERI).

d.

Voluntary Reporting Guide (VRG).

Which of the following is considered the most significant concern of the audit committee of an
organization?
a.
8.

Organizational risk.

b.

Compensation of the audit committee.

c.

Activities of the warehouse personnel.

d.

Directors and officers insurance coverage.

Goodwill impairment is measured as which of the following?

9.

The difference between market value of the operating segment and the
a. FMV of net assets.
The difference between book value of the operating segment and the FMV
b. of net assets.
The difference between market value of the operating segment and the
c. book value of net assets.
d.

None of the choices is correct.

Decisions about materiality involve which of the following?

a.
10.

A matter of professional judgment.

b. Dependent on the needs of a reasonable person.

c. Involve both quantitative and qualitative considerations.
d.

All of the choices are correct.

11. A summary of unadjusted audit differences:

a.

Is a summary of corrected errors.

b. Should be communicated to the audit committee.

c. Should be communicated in a management letter.

Should be evaluated by the audit committee as to whether an adjustment
d. is required.

For which of the following audit areas would the external auditor be least likely to rely on work
performed by a client's internal audit function?
a.

Valuation of a client's restructuring charge.

12.

b.

Existence of inventory.

c.

Cut-off tests of revenue.

d.

Existence of cash.

In assessing the competence and objectivity of an entity's internal auditor, which of the following
would an external auditor be least concerned with?
a. The extent to which the internal audit function complied with professional internal auditing standards.
13.

b.

External quality reviews of the internal auditor's activities.

c.

Previous experience with the internal auditor.

d. The extent to which the internal audit programs are approved by the external audit function.

B b a d dddaadda d