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AUE2601 Assignment 3 Semester 2 2024 All Questions covered
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AUE2601 Assignment 3 Semester 2 2024 All Questions covered
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10/10/24, 1:15 PM Assessment 3: Attempt review Dashboard Calendar
Dashboard / My courses / AUE2601-24-S2 / Welcome Message / Assessment 3
Started on Thursday, 10 October 2024, 12:59 PM
State Finished
Completed on Thursday, 10 October 2024, 1:15 PM
Time taken 15 mins 41 secs
Question 1
Correct
Marked out of 2.00
Determining materiality involves the exercise of professional judgement. A percentage is often applied to a chosen benchmark as a
starting point in determining the materiality of the financial statements as a whole.
Which of the following factors affect the identification of the appropriate benchmark on which to calculate materiality?
1. The elements of the financial statements.
2. The relative volatility of the currency in which the entity’s financial statements are presented.
3. Whether there are items on which the attention of the users of the entity’s financial statements tend to be focused.
4. The entity’s ownership structure and the way it is financed.
Select the correct option
a.
1, 2 and 3
b. 1, 3 and 4
c.
2 and 3
d. 2, 3 and 4
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,10/10/24, 1:15 PM Assessment 3: Attempt review
Question 2
Correct
Marked out of 2.00
Dashboard Calendar
The following conclusion was included in the auditor’s report:
Dashboard / My courses / AUE2601-24-S2 / Welcome Message / Assessment 3
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that these financial statements do not present fairly,
in all material respects, (or do not give a true and fair view of) the financial position of ABC Company as at December 31, 20X1, and (of)
its financial performance and cash flows for the year then ended, in accordance with International Financial Reporting Standards for
Small and Medium-sized Entities.
Indicate the type of assurance engagement that was performed on the financial statements of ABC Company.
a.
Limited assurance engagement
b. Reasonable assurance engagement
c.
Non-assurance engagement
d. Compilation engagement
Question 3
Partially correct
Marked out of 2.00
What should the auditor do in establishing the overall audit strategy?
Choose all the correct options.
a. Identify the characteristics of the engagement that defines its scope
b. Include a description of the nature, timing and extent of planned risk assessment procedures.
c. Consider factors that, in the auditors’ professional judgment, are significant in directing the engagement teams’ efforts
d. Ascertain the nature, timing and extent of resources necessary to perform the engagement
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,10/10/24, 1:15 PM Assessment 3: Attempt review
Question 4
Correct
Marked out of 2.00
Dashboard Calendar
1. AZT receives a monthly management fee from its subsidiary Tee. The management fee is based on 10% of the previous year’s
Dashboard / My courses / AUE2601-24-S2 / Welcome Message / Assessment 3
audited net asset value of Tee. Which type of audit procedure will be the most suitable to test the account balance of management
fee income received?
a. Test of controls.
b.
Inquiries from management on how the calculation was performed.
c. Substantive analytical procedures.
d.
Obtaining confirmation from Tee’s accountant of the amount of management fees paid.
Question 5
Correct
Marked out of 2.00
Choose the correct option from the options below.
During which stage of the audit will the auditor request permission to communicate with the previous auditor to decide whether to
accept or reject the new engagement?
a. Planning stage
b.
Responding to assessed risk stage
c. Preliminary stage
d.
Concluding stage
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, 10/10/24, 1:15 PM Assessment 3: Attempt review
Question 6
Incorrect
Dashboard Calendar
Marked out of 2.00
Dashboard / My courses / AUE2601-24-S2 / Welcome Message / Assessment 3
When designing and performing audit procedures, the auditor shall consider the relevance of the information to be used as audit
evidence.
Which one of the options describes evidence gathered by the auditor which will be relevant for the existence assertion relating to
inventory?
1. The auditor selects a sample of inventory items from the inventory records to count and inspect at the annual inventory
count.
2. The auditor recalculates the value of inventory on hand and compares it to the value per the stock listing.
3. The auditor obtains confirmation about the consignment inventory held at a third party.
4. The auditor selects inventory items from the floor and traces these back to the stock listing.
a.
1, 2 and 4
b. 1, 3 and 4
c.
1 and 3
d. 2 and 4
Question 7
Correct
Marked out of 2.00
Which of the following responses will address the assessed risk of material misstatement at the financial statement level?
Note that there could be more than one correct answer.
a. Assigning more experienced staff or those with special skills or using experts
b. Emphasising to the engagement team the need to maintain professional scepticism
c. Increasing the sample size of the operating expenses being tested for validity and accuracy
d. Physical verification of all assets and inventory
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