1. One of the five drivers of the FRC\'s Audit Quality Framework is audit firm c
ID: 2330864 • Letter: 1
Question
1. One of the five drivers of the FRC's Audit Quality Framework is audit firm culture. Which of the following is not one of the other four elements?
2.
The objective of external auditing is to provide opinions on the reliability of the financial statements and provide opinions on internal control effectiveness.
b. False
3.
Independence in fact means that a third party with knowledge of the auditor's relationship with the client would consider the auditor to be independent whereas independence in appearance means the auditor is unbiased and objective.
4.
Which of these is not true regarding the special function performed by the external auditing profession?
a. Effectiveness of the audit process. b. Skills and qualities of the audit partner and the engagement team. c. Reliability and usefulness of audit reporting. d. Familiarity with the client's board of directors.2.
The objective of external auditing is to provide opinions on the reliability of the financial statements and provide opinions on internal control effectiveness.
a. Trueb. False
3.
Independence in fact means that a third party with knowledge of the auditor's relationship with the client would consider the auditor to be independent whereas independence in appearance means the auditor is unbiased and objective.
a. True b. False4.
Which of these is not true regarding the special function performed by the external auditing profession?
a. It serves the interests of client management rather than the public. b. It helps ensure the reliability and integrity of the financial reporting system. c. It exists to serve the users of the organization's financial statements. d. It attests to the fairness of the client's financial statements.Explanation / Answer
1) d
Familiarity with clients board of director is a threat to a auditors independence not a element in Audit quality framework , the fifth element is factors outside the control of auditors .
2) b
The objectives of auditing is to provide opininon of financial statement , and its mangement or audit committe or internal audit objectives is to ensure effectiveness if internal controls.
3) b
It is not sure about the independence in the case that third party knowledgable about client and auditor relationship, we cannot says that auditor is independence.
4) a
It serves public interest rather than clients management interest , professional bodies are more enforcing to perform thier duty towards pulbic includes , investors ,general public , government etc..
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