Question

Sir there is a question in kit that

You are a manager in spring and co. You are reviewing the audit file of autumn co which is nearing completion. You have noticed similar issues during your review. Several working papers have not been signed as reviewed. You are aware that a review has taken place but it is not documented on the audit file. 1 audit working paper states that a sample of 30 purchase invoices should be tested but the results of the test only 25 invoices were tested. Several other areas document that samples sizes were reduced in order to save time . In the subsequent events review section of the file the audit senior documented that they have inquired of management that whether there have been any subsequent events and were told that there have not been any. No further work was considered necessary as a result.

Which of the following is not a reason for having quality standards such as ISA 220 which auditors must follow?

a. To reduce the risk of issuing an inappropriate audit opinion
b. To maintain confidence in audit process and audit profession
c. To increase the amount of regulation for auditors to follow
d. To protect firm’s reputation and minimizes the risk of law suit brought against the audit firm.

Correct ans is C, but please explain me

Which of the following are true in respect of review of audit working papers?

a. All team members work should be reviewed by some one of manager level or above
b. All team members work should be reviewed by audit partner
c. All team members work should be reviewed by someone other than the preparer
d. All team members work should be revised by someone more senior than the preparer.

Correct ans is D, but please explain me