Which of the internal control activities identified in the audit junior's notes above would satisfy the objective of preventing/detecting a material misstatement if it is operating effectively?
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2 .Which of the following correctly summarises the order in which the steps required by the firm's policy for first year audits would take place?
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3 .Once NAB & Co has accepted appointment as Mickey's auditor they must draw up an engagement letter.Which of the following must be included in the audit engagement letter?
A Arrangements concerning the use of experts such as inventory counters B Obligations to make audit working papers available to other parties C Expected form and content of any reports D Basis on which fees are computed
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5 .Based on your understanding of the nature of EuKaRe you have identified that income is primarily in the form of cash.Which element of audit risk is increased by this fact?
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8 .You instruct the audit junior to confirm whether the post is opened by more than one individual.Over which of the following internal control objectives would this provide assurance?(1) Cash receipts are not misappropriated(2) All cash receipts that occurred are recorded(3) Cash receipts are recorded at the correct amounts in the ledger(4) Cash receipts are posted to the correct receivables accounts and to the general ledger
A 1 only B 2 only C 3 and 4 D 1 and 4
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