ACCA F8 Revision Quiz

1. What sort of ethical threat arises from the auditor auditing financial statements that the auditor also prepared?

2. What is the correct treatment of a contingent asset where the inflow of economic benefits is not probable?

3. ACCA suggest that lead audit partners should be rotated no less frequently than how many years?

4. If an auditor advises clients to buy shares in another client, what sort of ethical threat arises?

5. In what type of document would the following sentence be typically found?

“We have no plans or intentions that might materially affect the carrying value or classification of assets and liabilities reflected in the financial statements”

6. As more items are examined in the sample, sampling risk…..

7. Which one of the following is NOT a component of the three components of audit risk?

8. The title of the paragraph that can be inserted in an audit report to draw users’ attention to a note in the financial statements is:  an emphasis of  ***** paragraph

9. A receivables circulation in which a reply is expected from each customer written to, stating whether or not they agree with the balance.

This is a …

10. Who sets the International Standards on Auditing?

11. If an item is included in year-end inventory but no invoice had been received by year-end, to get cut-off correct, the cost of the item should be:

12. What quality the auditor should NOT look for in third parties who are carrying out some audit work?

13. An audit is the **** examination of, and expression of opinion on, the financial statements of an entity.

14. Is the following question typical of an internal control questionnaire (ICQ) or an internal control evaluation questionnaire (ICEQ)? “Can employees be paid for hours that have not been worked?”

15. * * * of duties implies that a number of people are involved in an accounting process or transaction.

What word should be in place of * * *?

16. Here is an excerpt from an audit report, what word should replace * * *?

“We planned and conducted our audit to obtain * * * assurance that the financial statements are free from material misstatement”

17. What type of sampling is being used if, say, every 200th invoice is examined?

18. * * * risk is the susceptability of an assertion to a misstatement that could be material individually or when aggregated with misstatements, assuming there were no related internal controls.

What word should appear for * * *?

19. Which one of the following is NOT part of the five main principles of the UK Corporate Governance Code?

20. In a listed company, to whom should internal audit report?