ACCA F8 Revision Quiz

Please take ACCA F8 Revision Quiz

To complete the quiz you must answer all 20 questions, then you will be shown the results and the correct answers.

(This quiz selects 20 questions at random from the bank, so do try the test again)

1. Who sets the International Standards on Auditing?

RSB
ISB
IAASB
IFAC
ISAB

Question 1 of 20

2. Audit reports can be qualified for two reasons. On reason is inability to collect sufficient appropriate audit evidence.

The other reason is:

The financial statements contain a note to which attention needs to be drawn
The financial statements contain an item that cannot be audited
The financial statements contradict information in the director’s report
The financial statements contain a material misstatement

Question 2 of 20

3. Is the following true or false?

Under the UK government code listed companies are required to have an internal audit department

True
False

Question 3 of 20

4. What word should appear for * * *?

* * * risk is the risk that a material misstatement in an assertion will not be prevented or detected and corrected on a timely basis by the entity’s internal control.

Question 4 of 20

5. There are two types of audit file, one is current audit file, the other is ****** audit file

Question 5 of 20

6. When the audit firm changes, the proposed new auditor should contact the retiring auditor. If the client refuses permission for communication to take place, what should the proposed new auditor do?

Decline the appointment
Contact an attorney
Send a cease and desist letter
Contact supervisor
Decrease audit fees

Question 6 of 20

7. Which one of the following pairs of evidence is better? Indirect evidence v auditor-direct

Indirect evidence
Auditor-direct

Question 7 of 20

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

Leadership
Effectiveness
Remuneration
Accountability
Confidentiality
Relations with shareholders

Question 8 of 20

9. What range of percentage of profit is often taken as guidance for materiality?

½ – 1% of revenue
1 – 2% of total assets
5 – 10% of profit before tax

Question 9 of 20

10. What aspects of a client’s undertaking do computer audit programs examine?

client data
client integrity
malware on client’s computer
correct operation of the client’s computer

Question 10 of 20

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

Inherent risk
Control risk
Operational Risk
Detection risk

Question 11 of 20

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

What word should be in place of * * *?

Question 12 of 20

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

A self-interest threat
A self-review threat
A familiarity threat
A management threat
An advocacy threat

Question 13 of 20

14. What sort of ethical threat arises from the auditor owning shares in the company audited?

A familiarity threat
A self-review threat
A management threat
An advocacy threat
A self-interest threat

Question 14 of 20

15. For how long after the date of the statement of financial position should going concern be assessed?

6 months
24 months
3 months
12 months

Question 15 of 20

16. 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”

Management representation letter
Management letter
Audit planning letter
Engagement letter

Question 16 of 20

17. 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

Question 17 of 20

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

Random
Sequence
Systematic
Haphazard
Monetary unit sampling

Question 18 of 20

19. Which one of the following pair of evidence is better?

External
Entity’s records

Question 19 of 20

20. 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 …

Negative confirmation
Positive confirmation
Receivables count
Receivables reconciliation

Question 20 of 20

ACCA F8 Revision Quiz

Please take ACCA F8 Revision Quiz

To complete the quiz you must answer all 20 questions, then you will be shown the results and the correct answers.

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