In which of the following case, Rehan & Co may issue an adverse opinion?

February 28, 2021PdfprepAAAA exam questions, AA practice exam, Certified public accountant

Rehan & Co has been appointed as an external auditor of Limba Plc for the financial year 2011-12. Rehan & Co has identified some problems in the financial statements and now at the final stage...

Read more +

Which one of the following actions is LEAST likely to be taken in respect of this matter?

February 28, 2021PdfprepAAAA exam questions, AA practice exam, Certified public accountant

During the audit planning for your client Shang Ltd for the year ending 30 April 2013, you read the following comment on the 'points forward for next year' schedule included in last year's audit working...

Read more +

Which of the following audit procedures would most likely detect this fraud?

February 26, 2021PdfprepAAAA exam questions, AA practice exam, Certified public accountant

A production manager for a medium-sized manufacturing company began ordering excessive raw materials and had them delivered to a wholesale company he runs as a side business. He falsified receiving documents and approved the invoices...

Read more +

What would be the most appropriate action by Dan Lawrence when Pauli Morin asked him to disclose company’s accounts details?

February 26, 2021PdfprepAAAA exam questions, AA practice exam, Certified public accountant

Dan Lawrence is the auditor of Nava Ltd. The directors are Bernard Russell, Pauli Morin and Cyndi Clifford. They are also the only shareholders owning 35% of total shares by Russell and Morin and the...

Read more +

Which of the following represents inherent limitation of a system of internal controls in Cates plc?

February 24, 2021PdfprepAAAA exam questions, AA practice exam, Certified public accountant

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...

Read more +

Which of the following is most likely to be considered as an indication of possible fraud?

February 20, 2021PdfprepAAAA exam questions, AA practice exam, Certified public accountant

Internal auditors must exercise due care if they are to meet their responsibilities for fraud detection. Thus, the existence of certain conditions should raise auditor’s professional scepticism concerning possible fraud . Which of the following...

Read more +

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.

February 19, 2021PdfprepAAAA exam questions, AA practice exam, Certified public accountant

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...

Read more +

Which of the following is NOT a matter to be considered in respect of the opening balances of Crate Ltd?

February 19, 2021PdfprepAAAA exam questions, AA practice exam, Certified public accountant

Your firm has recently been appointed as auditor to Crate Ltd for the year ending 31 October 2012. This is the first year of audit for Crate Ltd as it fell below the statutory audit...

Read more +

Which of the following is not included in the list of additional audit procedures that are to be carried out by the auditor?

February 18, 2021PdfprepAAAA exam questions, AA practice exam, Certified public accountant

When questions arise on the appropriateness of the going concern assumption, some of the normal audit procedures carried out by the auditors may take on an additional significance. Auditors may also have to carry out...

Read more +

Which one of the following is not an objective of audit planning?

February 17, 2021PdfprepAAAA exam questions, AA practice exam, Certified public accountant

Audit documentation provides evidence that the audit complies with the ISAs. However, it is neither necessary nor practicable for the auditor to document every matter considered, or professional judgment made, in an audit. Further, it...

Read more +