Academy of Professional Accounting (APA) · ACCAspace 中国ACCA特许公认会计师教育平台 Copyright © ACCAspace.com 9 June 2015 Q2 Auditors are required to undertake an overall

Professional Accounting Education

Provided by Academy of Professional Accounting (APA)

Copyright © ACCAspace.com ACCAspace 中国ACCA特许公认会计师教育平台

ACCA F8 习题详解 Audit and Assurance (AA)

审计与鉴证业务第25讲

ACCA Lecturer: Andy Qu

Copyright © ACCAspace.com ACCAspace 中国ACCA特许公认会计师教育平台 2

1

2

MCQ Bank

Contents of Class 25

Short answer questions


ACCA F8 考试复习主干内容

1. 必须记忆或背诵的理论知识点

Concept of audit

Assertions: CEAVOP

Audit risk

Materiality

Audit procedures

Seven procedures for obtaining evidence

Subsequent events

Going concern

Corporate governance

Ethics



2. 审计程序

Revenue/Cost of sales

Receivables/Payables

Inventory (Count)

Non-current assets

Going concern

Accrued payroll

Subsequent events

Cash



3. 多看多积累的题型

- Deficiency and recommendations (Management Letter)

Sales system

Purchase system

Inventory Count

Wage system

Cash/Non-current asset

- Audit risks

- Ethical threats

- Corporate governance practices



考前几天还需要看哪些题目？

F8 Past Papers (June 2014 – December 2015)

F8 Specimen Exam Paper

F8 练习册 MCQs

NOTE:

These may only cover 50% of exam contents. More detailed

concepts are in your TEXTBOOKs!


June 2015 Q1

Which of the following audit procedures for obtaining

audit evidence is correctly described?

A Recalculation involves the auditor’s independent execution of

procedures or controls which were originally performed as part of

the entity’s internal control

B Confirmation consists of seeking information of knowledgeable

persons, within the company or outside the company

C Re-performance consists of checking the mathematical

accuracy of documents or records

D Observation consists of looking at a procedure or process being

performed by others


Answer

D

Audit procedure A describes reperformance, B is

describing inquiry rather than confirmation and procedure

C is describing recalculation.


June 2015 Q2

Auditors are required to undertake an overall review of the financial

statements as the final step before they form their audit opinion.

Which of the following procedures would an auditor NOT undertake

as part of the overall review of the financial statements?

A Reviewing the financial statements to ensure they are consistent with

the auditor’s knowledge of the business and the results of their audit work

B Performing analytical procedures on the financial statements to form an

overall conclusion on the financial statements

C Undertaking a review of subsequent events to identify whether any

adjustment or disclosure is required in the financial statements

D Reviewing the financial statements to ensure compliance with

accounting standards and local legislation disclosure


Answer

C

Procedures A, B and D would be undertaken as part of

the overall review of the financial statements. However,

procedure C is undertaken when reviewing subsequent

events occurring between the date of the financial

statements and the date of the auditor’s report.


June 2015 Q3

Which of the following is NOT an inherent limitation

of internal control systems?

A Insufficient segregation of duties

B Possibility that employees may collude together

fraudulently

C Possibility of human error in undertaking tasks


Answer

A

A is incorrect as it is not an inherent limitation of an

internal control system; rather it is an internal control

deficiency.


June 2015 Q5

Which TWO of the following statements regarding the use of analytical

procedures during the PLANNING stage of the audit are correct?

(1) Analytical procedures are useful when forming an overall conclusion

as to whether the financial statements are consistent with the auditor’s

understanding of the company

(2) Analytical procedures can be used to obtain relevant and reliable

audit evidence

(3) Analytical procedures can assist in identifying the risks of material

misstatement

(4) Analytical procedures can assist in identifying unusual transactions

and events

A 1 and 2 B 2 and 3 C 3 and 4 D 2 and 4


Answer

C

Statement 1 refers to the use of analytical procedures at

the final review or completion stage of the audit.

Statement 2 refers to the use of analytical procedures to

obtain substantive evidence during the fieldwork stage of

the audit.


June 2015 Q7

Which of the following is NOT a principle of the UK

Corporate Governance Code?

A There should be a rigorous and transparent procedure for

the appointment of new directors to the board

B The board should use the annual general meeting (AGM)

to communicate with investors

C The non-executive chairman should decide on the

remuneration of all directors

D All directors should receive induction training on joining the

board


Answer

C

C is incorrect as the UK Corporate Governance Code

states that no director should be involved in setting their

own remuneration. Hence the non-executive chairman

cannot set his own remuneration.


June 2015 Q11

Which of the following statements relating to internal

and external auditors is correct?

A Internal auditors are required to be members of a

professional body

B Internal auditors’ scope of work should be determined by

those charged with governance

C External auditors report to those charged with governance

D Internal auditors can never be independent of the

company


Answer

B

A is incorrect as internal auditors are not required to be

members of any professional body. C is incorrect as

external auditors report to shareholders rather than those

charged with governance. D is incorrect as internal

auditors can be independent of the company, if, for

example, the internal audit function has been outsourced.


June 2015 Section B Q2

ISA 315 Identifying and Assessing the Risks of Material

Misstatement through Understanding the Entity and Its

Environment describes the five components of an entity’s

internal control.

Required:

Identify and briefly explain the FIVE components of

an entity’s internal control. (5 marks)



Control environment

Entity’s risk assessment procedures

Information system, including the related business

processes, relevant to financial reporting, and

communication

Control activities

Monitoring of controls



(i) Explain the purpose of review engagements and

how these differ from external audits; and (2 marks)

(ii) Describe the level of assurance provided by

external audits and review engagements. (2 marks)



(i) Identify and explain FOUR financial statement

assertions relevant to classes of transactions and

events for the year under audit; and

(ii) For each identified assertion, describe a

substantive procedure relevant to the audit of

REVENUE.

(8 marks)

Professional Accounting Education

Provided by Academy of Professional Accounting (APA)

Documents

Academy of Professional Accounting (APA) · ACCAspace 中国ACCA特许公认会计师教育平台 Copyright © ACCAspace.com 9 June 2015 Q2 Auditors are required to undertake an overall