Ethics and Terms of Audit Engagements

Question 1

1. Identify the most appropriate statement: -...

A) SA 220 applies at the level of firm.

B) SQC 1 is premised on the basis that firm is subject to SA 220.

C) SA 220 is premised on the basis that firm is subject to SQC 1. ✓

D) SA 220 applies to all engagements.

Question 2

2. Professional skepticism includes-...

A) Overlooking unusual circumstances.

B) Using inappropriate assumptions in determining extent of audit procedures.

C) Over generalising when drawing conclusions from audit observations.

D) Being vigilant to conditions that might indicate possibilities of fraud. ✓

Question 3

3. Which of the following is not a fundamental principle governing professional ethics?...

A) Professional competence and due care

B) Integrity

C) Objectivity

D) Safeguards to independence ✓

Sample Questions: Auditing