Your audit partner has highlighted to you that because South is a new audit client, it is particularly important that every member of the audit team has a good understanding of South's business.Which of the following procedures must you use to obtain an understanding of the South and its environment in accordance with ISA 315 Identifying and assessing the risks of material misstatement through understanding the entity and its environment?(1) Analytical procedures(2) Inquiry(3) Confirmation(4) Reperformance
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5 .From a review of the information above, your audit assistant has highlighted some of the potential risks to independence in respect of the audit of Stark.(1) Mr Day would like his daughter Zoe to be part of the audit team(2) Audit team to be offered a balloon flight(3) Tax fee to be based on a percentage of tax saved(4) Firm to represent Stark in a dispute with the tax authoritiesWhich of the following options best identifies the valid threats to independence and allocates the threat to the most appropriate category?
A Advocacy (3) and (4); Intimidation (3) only; Self-interest (1) and (2) B Advocacy (4) only; Intimidation (3) only; Self-interest (2) and (3) C Advocacy (3) only; Intimidation (3) and (4); Self-interest (2) D Advocacy (3) and (4); Intimidation (1) and (4); Self-interest (1) and (2)
7 .In relation to the audit team being offered a balloon ride:Which of the following actions should be taken to ensure the firm complies with ACCA's Code of Ethics and Conduct?
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8 .Having established a good understanding of South and its environment, the audit partner will need you to produce the planning documentation for the audit.Which of the following statements describe the objectives / benefits of planning an audit according to ISA 300 Planning an audit of financial statements ?(1) To ensure appropriate attention is devoted to important areas of the audit(2) To assist in the coordination of work done by experts(3) To facilitate the assignment of work to audit team members(4) To ensure the audit is completed within budget restraints
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