CHƯƠNG 1

1.Governmental auditing, in addition to including audits of financial statements,

often
includes audits of efficiency, effectiveness, and:
a. Adequacy.
b. Evaluation.
c. Accuracy.
d. Compliance
CHƯƠNG 1
1.Governmental auditing, in addition to including audits of financial
statements, often includes audits of efficiency, effectiveness, and:
a. Adequacy.
b. Evaluation.
c. Accuracy.
d. Compliance
2.In general, internal auditors’ independence will be greatest when they report
directly to the:
a. financial vice president.
b. corporate controller.
c. Audit committee of the board of directors.
d. Chief executive officer.
3.Which of the following organizations establishes auditing standards for
Vietnam government agencies?
a. Ministry of Financial
b. Vietnam Association of Certified Public Accountants
c. Vietnam Association of Accountants and Auditors
d. State Audit of Vietnam
4.Which of the following is an example of a compliance audit?
a. An audit of financial statemen
b. An audit of a company’s policies and procedures for adhering to environmental
laws and regulations.
c. An audit of a company’s internal control over financial reporting.
d. An audit of the efficiency and effectiveness of a company’s legal department
5.Which of the following is an example of an operational audit?
a. An audit of financial statements.
b. An audit of a company’s policies and procedures for adhering to environmental
laws and regulations.
c. An audit of a company’s internal control over financial reporting.
d. An audit of the efficiency and effectiveness of a company’s legal department.
6.Which of the following is an example of an audit of financial statements
audit?
a. An audit of the efficiency and effectiveness of a company’s legal department
b. An audit of a company’s policies and procedures for adhering to environmental
laws and regulations.
c. An audit of the true and fair of a company’s financial statements
d. An audit of the efficiency and effectiveness of a company’s financial statements
8.Independent audit increases the reliability of information on the financial
statements to help those interested in the following:
a. The corporate governances
b. The government agencies
c. The investors
d. a, b, and c are right.
9.What do Types of audits include?
a. Operational audit, financial statements audit, independent audit
b. Operational audit, financial statements audit, compliance audit
c. financial statements audit, internal audit, independent audit
d. Compliance audit, internal audit, government audit.
10.What do Types of auditors include?
a. Operational audit, internal audit, independent audit
b. Operational audit, financial statements audit, compliance audit
c. Government, internal audit, independent audit
d. Compliance audit, internal audit, government audit
 CHƯƠNG 2
1. Which of the following is not a financial statement assertion made by
management?
A. Existence of recorded assets and liabilities
B. Completeness of recorded assets and liabilities
C. Valuation of assets and liabilities
D. Effectiveness of internal control
2.Which of the following business characteristics is not indicative of high
inherent risk?
a. Operating results that are highly sensitive to economic factors.
b. Large likely misstatements detected in prior audits.
c. Substantial turnover of management.
d. A large amount of assets.
3. The risk that the auditors will conclude, based on substantive procedures,
that a material misstatement does not exist in an account balance when, in fact,
such misstatement does exist is referred to as
a. Inherent risk.
b. Audit risk.
c. Control risk.
d. Detection risk
4. Three conditions generally are present when fraud occurs. Select the one
below that is not one of those conditions.
a. Incentive or pressure.
b. Opportunity.
c. Supervisory position.
d. Attitude.
5.“Auditors use less predictable audit procedures”. Such misstatement does
exist is referred to as
a. Engagement risk.
b. Business risk.
c. Control risk.
d. Detection risk
6.Which of the following risks are not related to the functioning, operating
characteristics
of the audited firm?
a. Inherent risk, Audit risk
b. Business risk, Control risk
c. Detection risk, Audit risk
d. a, b and c are right.
7.Which of the following risks are not related to the audit procedure of auditors?
a. Inherent risk, Audit risk
b. Inherent risk, Control risk
c. Detection risk, Audit risk
d. a, b and c are right.
8.Which of audit objectives related to the inventory of fixed assets at the end of
fiscal
period?
a. Existence
b. Accuracy
c. Completeness
d. Rights
9.Which of audit objectives related the auditors might select a sample of shipping
documents issued during the year and trace the details to recorded sale transactions?
a. Existence
b. Accuracy
c. Completeness
d. Rights
10.Which of the following content is an audit objective?
a. Existence
b. Efficiency
c. Effectiveness
d. a, b and c are right.
6.Which of the following risks are not related to the functioning, operating
characteristics of the audited firm?
a. Inherent risk, Audit risk
b. Business risk, Control risk
c. Detection risk, Audit risk
d. a, b and c are right.
7.Which of the following risks are not related to the audit procedure of
auditors?
a. Inherent risk, Audit risk
b. Inherent risk, Control risk
c. Detection risk, Audit risk
d. a, b and c are right.
8.Which of audit objectives related to the inventory of fixed assets at the end of
fiscal period?
a. Existence
b. Accuracy
c. Completeness
d. Rights
9.Which of audit objectives related the auditors might select a sample of
shipping documents issued during the year and trace the details to recorded
sale transactions?
a. Existence
b. Accuracy
c. Completeness
d. Rights
10.Which of the following content is an audit objective?
a. Existence
b. Efficiency
c. Effectiveness
d. a, b and c are right.
CHƯƠNG 3
1. What best describes the purpose of the independent auditors’ consideration
of internal control in a financial statement audit for a public company.
a. To determine the nature, timing, and extent of audit testing.
b. To make recommendations to the client regarding improvements in internal
control.
c. To train new auditors on accounting and control systems.
d. To identify opportunities for fraud within the client’s operations.
2.An auditor may compensate for a weakness in internal control by increasing
the extent of:
a. Tests of controls
b. Detection risk
c. Substantive tests of details
d. Inherent risk
3.Which of the following would be least likely to be considered an objective of
internal control?
a. Checking the accuracy and reliability of accounting data.
b. Detecting management fraud.
c. Encouraging adherence to managerial policies.
d. Safeguarding assets.
4.An entity’s monitoring activities often include:
a. Periodic audits by internal auditors.
b. The audit of the annual financial statements.
c. Management review of weekly performance reports.
d. a, b and c are right.
5.A primary objective of procedures performed to obtain an understanding of
internal control is to provide the auditors with:
a. Audit evidence to use in reducing detection risk.
b. An evaluation of the control risk
c. A basis for modifying tests of controls.
d. An evaluation of the consistency of application of management policies
6.Controls over financial reporting are often classified as preventative,
detective, or corrective. Which of the following is an example of detective m m
control?
a. Segregation of duties over cash disbursements.
b. Requiring approval of purchase transactions.
c. Preparing bank reconciliations.
d. Maintaining backup copies of key transactions.
7.Controls over financial reporting are often classified as preventative,
detective, or corrective. Which of the following is an example of a preventative
control?
a. Segregation of duties over cash disbursements.
b. Requiring approval of purchase transactions.
c. Maintaining backup copies of key transactions.
d. a, b and c are right.
8.Of the following statements about internal control, which one is not valid?
a. No one person should be responsible for the custody and the recording of an
asset.
b. Transactions should be properly authorized before such transactions are
processed.
c. Because of the cost/benefit relationship, a client may apply controls on a test
basis.
d. Controls reasonably ensure that collusion among employees cannot occur.
9.When a CPA decides that the work performed by internal auditors may have
an effect on the nature, timing, and extent of the CPA’s procedures, the CPA
should consider the competence and objectivity of the internal auditors.
Relative to objectivity, the CPA should:
a. Consider the organizational level to which the internal auditors report the results
of their work.
b. Review the internal auditors ‘work.
c. Consider the qualifications of the internal audit staff.
d. Review the training program in effect for the internal audit staffs.
CHƯƠNG 4
1.Which of the following should not normally be included in the engagement
letter for an audit?
a. A description of the responsibilities of client personnel to provide assistance.
b. An indication of the amount of the audit fee.
c. A description of the limitations of an audit.
d. A listing of the client’s branch offices selected for testing.
2.Which portion of an audit is least likely to be completed before the balance
sheet date?
a. Tests of controls.
b. Issuance of an engagement letter.
c. Substantive procedures.
d. Assessment of control risk.
3.Which of the following should the auditors obtain from the predecessor
auditors before accepting an audit engagement?
a. Analysis of balance sheet accounts.
b. Analysis of income statement accounts.
c. All matters of continuing accounting significance.
d. Facts that might bear on the integrity of management.
4.The primary objective of tests of details of transactions performed as
substantive procedures is to:
a. Comply with generally accepted auditing standards.
b. Attain assurance about the reliability of the accounting system.
c. Detect material misstatements in the financial statements.
d. Evaluate whether management’s policies and procedures are operating
effectively.
5. Which of the following is not a procedure to obtain an understanding of risk
in the planning stage (described in VSA/ISA 315)?
A. Inquiries of management
B. Observation and inspection
C. Analytical procedures
D. Procedures for sampling audit tests.
CHƯƠNG 5
1. As part of their audit, auditors obtain a representation letter from their client.
Which of
the following is not a valid purpose of such a letter?
a. To increase the efficiency of the audit by eliminating the need for other audit
procedures.
b. To remind the client’s management of its primary responsibility for financial
statements.
c. To document in the audit working papers the client’s responses to certain verbal
inquiries made by the auditors during the engagement.
d. To provide evidence in those areas dependent upon management’s future
intentions.
2.Which of the following statements best describes why auditors investigate related
party
transactions?
a. Related party transactions generally are illegal acts.
b. The substance of related party transactions may differ from their form.
c. All related party transactions must be eliminated as a step in preparing
consolidated
financial statements.
d. Related party transactions are a form of management fraud.
3.Of the following, which is the least reliable type of audit evidence?
a. Confirmations mailed by outsiders to the auditors.
b. Correspondence between the auditors and suppliers.
c. Copies of sales invoices inspected by the auditors.
d. Canceled checks returned in the year-end bank statement directly to the client.
4. Analytical procedures are most likely to detect:
a. Weaknesses of a material nature in internal control.
b. Unusual transactions.
c. Noncompliance with prescribed control
d. Improper separation of accounting and other financial duties
5.In using the work of a specialist, the auditors referred to the specialist’s findings
in their
report. This would be an appropriate reporting practice if the:
a. Client is not familiar with the professional certification, personal reputation, or
particular competence of the specialist.
b. Auditors, as a result of the specialist’s findings, give a qualified opinion on the
financial statements.
c. Client understands the auditors’ corroborative use of the specialist’s findings in
relation
to the representations in the financial statements.
d. Auditors, as a result of the specialist’s findings, decide to indicate a division of
responsibility with the specialist.
CHƯƠNG 6
1.An auditor accepted an engagement to audit. The 20X8 financial statements of
EFG
Corporation and began the fieldwork on September 30, 20X8. EFG gave the
auditor the
20X8 financial statements on January 17, 20X9. The auditor completed the audit on
February 10, 20X9, and issued the report on February 16, 20X9. The client’s
representation letter normally would be dated:
a) December 31, 20X8.
b) January 17, 20X9.
c) February 10, 20X9.
d) February 16, 20X9.
2.Which of the following is most likely to be considered a subsequent event
required
adjustment to the financial statements?
a) A business combination completed after year-end, but for which negotiations
began
prior to year-end.
b) A strike subsequent to year-end due to employee complaints about working
conditions
which originated two years ago.
c) Customer checks deposited prior to year-end but determined to be uncollectible
after
year-end.
d) Introduction of a new line of products after year-end for which major research
had
been completed prior to year-end.
3.Which of the following events occurring on January 5, 20X2, is most likely to
result
require disclosure in the notes to the 20X1 financial statements (if material)?
) A business combination.
b) Early retirement of bonds payable.
c) Plant closure due to a strike.
d) All are correct.
4.Which of the following is least likely to be considered as an “emphasis of matter”
in
what remains an unqualified audit report?
a) The company is a component of a larger business enterprise.
b) An unusually important significant event.
c) A decision not to confirm accounts receivable.
d) A risk or uncertainty.
5.The auditor who wishes to indicate that the entity has significant transactions with
related parties should disclose this fact in:
a) An explanatory paragraph to the auditors’ report
b) An explanatory note to the financial statements.
c) The body of the financial statements.
d) The “summary of significant accounting policies” section of the financial
statements.
6.When restrictions that significantly limit the scope of the audit are imposed by the
client. But it does no effect pervasive on the financial statements. The auditor
should
generally issue which of the following opinions?
a) Qualified.
b) Disclaimer.
c) Adverse.
d) Unqualified
7.When restrictions that significantly limit the scope of the audit are imposed by the
client. And it effects pervasive on the financial statements. The auditor should
generally
issue which of the following opinions?
a) Qualified.
b) Disclaimer.
c) Adverse.
d) Unqualified
8.When financial statements are materially misstated, the auditor should generally
issue
which of the following opinions?
a) Qualified.
b) Disclaimer.
c) Adverse.
d) a or c
9.When the auditor disagreement with management regarding the acceptability of
the
accounting policies selected and it effects pervasive on the financial statements. The
auditor should generally issue which of the following opinions?
a) Qualified.
b) Disclaimer.
c) Adverse.
d) Unqualified
10.When the auditor disagreement with management regarding the acceptability of
the
accounting policies selected and it does not affect pervasive on the financial
statements.
The auditor should generally issue which of the following opinions?
a) Qualified.
b) Disclaimer.
c) Adverse.
d) Unqualified