Audit programme is prepared by
- A) the auditor
- B) the client
- C) the audit assistants
- D) the auditor and his audit assistants
The working papers which auditor prepares for financial statements audit are : _
- A) evidence for audit conclusions
- B) owned by the client
- C) owned by the auditor
- D) retained in auditor’s office until a change in auditors
The quantity of audit working papers complied on engagement would most be affected by
- A) management’s integrity
- B) auditor’s experience and professional judgment
- C) auditor’s qualification
- D) control risk
Which of the following best describes the primary purpose of audit programme preparation?
- A) To detect errors or fraud.
- B) To comply with GAAP
- C) To gather sufficient appropriate evidence
- D) To assess audit risk
Which of the following is not an advantage of the preparation of working paper?
- A) To provide a basis for review of audit work
- B) To provide a basis for subsequent audits
- C) To ensure audit work is being carried out as per programme
- D) To provide a guide for advising another client on similar issues
The auditor’s permanent working paper file should not normally, include
- A) extracts from client’s bank statements
- B) past year’s financial statements
- C) attorney’s letters
- D) debt agreements
For what minimum period should audit working papers be retained by audit firm?
- A) For the time period the entity remains a client of the audit firm.
- B) For a period of ten years
- C) For a period auditor opines them to be useful in servicing the client
- D) For the period the audit firm is in existence.
Which of the following factors would least likely affect the quantity and content of an auditor’s working papers
- A) The assessed level of control risk
- B) The possibility of peer review
- C) The nature of auditor’s report
- D) The content of management representation letter
Which of the following statement is true regarding an auditor’s working papers?
- A) They document the level of independence maintained by the auditor
- B) They should be considered as the principle support for the auditor’s report
- C) They should not contain details regarding weaknesses in the internal control system
- D) They help the auditor to monitor the effectiveness of the audit firm’s quality control
Which of the following statement best describes the understanding with respect to ownership and custody of working papers prepared by an auditor?
- A) The working papers may be obtained by third parties when they appear to be relevant to issues raised in litigation
- B) The safe custody of working papers is the responsibility of client, if kept at his premises
- C) The working papers must be retained by an audit firm for a period of 10 years
- D) Successor auditors may have access to working papers of the predecessor auditors. The approval of client is not required.