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Which type of risk has been illustrated in Safe Haven?
Pahari Robert has been appointed the auditor of Safe Haven which has a year end of 31 May. Safe Haven is a small registered charity based in a small town in Warshire. The organisation provides shelter for abandoned dogs and puppies with the aim of finding new homes for as...
A personnel department is responsible for processing placement agency fees for new hires. A recruiter established some bogus placement agencies and, when interviewing walk-in applicants, the recruiter would list one of the bogus agencies as referring the candidate.
A personnel department is responsible for processing placement agency fees for new hires. A recruiter established some bogus placement agencies and, when interviewing walk-in applicants, the recruiter would list one of the bogus agencies as referring the candidate. A possible means of detection or deterrence is toA . Process all...
A firm’s inventory consisted of 5,000 various types of stocks, 100 of which accounted for 75% of the total monetary value. The most recent regular quarterly manual count revealed that there was an unnecessary two years’ supply of the more expensive items.
A firm’s inventory consisted of 5,000 various types of stocks, 100 of which accounted for 75% of the total monetary value. The most recent regular quarterly manual count revealed that there was an unnecessary two years’ supply of the more expensive items. The control that would best help to correct...
Which of the following represents inherent limitation of a system of internal controls in Cates plc?
Cates plc is a large organisation with a complex accounting and information system. Critical to an understanding of the system are the reporting lines and relationships between different departments. Which of the following represents inherent limitation of a system of internal controls in Cates plc?A . Lack of controls over...
Which of the following is not a part of an entity’s risk assessment process?
When performing risk assessment procedures and related activities to obtain an understanding of the entity and its environment, including the entity’s internal control, required by ISA 315, the auditor shall perform certain procedures to obtain information for use in identifying the risks of material misstatement due to fraud. Which of...
Which of the following statements would be correct about the reliability of audit evidence of Well Ltd?
Smith and Co is considering preliminary audit strategy for Well Ltd. Well Ltd is an established company with well-documented systems and controls. It has an internal audit function whose principal activity is to monitor the implementation and effectiveness of existing controls. Which of the following statements would be correct about...
Which of the following defines control risk for Mohin Co?
Mike Robin, ACA is identifying risk in the statement of Mohin Co as a part of his audit work. Which of the following defines control risk for Mohin Co?A . The risk that the financial statements of Mohin Co are materially misstated prior to audit.B . The susceptibility of an...
For the above review engagement, select which part of the engagement description constitutes the subject matter?
Jones & Co is the external auditor of Blue plc, a listed company. The directors of Blue plc have requested that Jones & Co carry out a review engagement assessing the effectiveness of its corporate governance policies against the UK Corporate Governance Code. For the above review engagement, select which...
Which of the following controls would be useful in preventing such incidence in future?
Grey Ltd has recently discovered that it has been paying invoices in respect of goods which had been returned as faulty prior to acceptance. It is company policy to record goods only if they have been accepted. Which of the following controls would be useful in preventing such incidence in...
If David believes an illegal act may have occurred, which of the following will be the LEAST necessary action?
David Copper is performing the audit of financial statement of Igma Co and is in doubt about some of the transactions. If David believes an illegal act may have occurred, which of the following will be the LEAST necessary action?A . Inquire of management of Igma Co, at a level...
