ACCA F8 - Audit and Assurance Revision Kit 2016
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Which of the following options correctly allocates the above procedures according to whether they will
be conducted during the interim or the final audit?
Interim audit
Final audit
(1) and (4) (2) and (3)
(2) and (4) (1) and (3)
(3) and (4) (1) and (2)
(1) and (3) (2) and (4)
7 During the interim audit, you performed internal controls testing and the results of these indicate that, to
date, the control environment is strong and internal controls are operating effectively.
James has asked you to explain the factors that will determine the extent of further work on internal controls
that will need to be performed at the final audit.
Which of the following should be taken into account when determining the extent of the additional work
needed at the final audit? (Select as many factors as you feel is appropriate.)
The significance of the assessed risks of material misstatement at the assertion level
The specific controls that were tested during the interim period, and significant changes to them
since they were tested, including changes in the information system, processes, and personnel
The length of the remaining period
The extent to which the auditor intends to reduce further substantive procedures based on the
reliance of internal controls
8 In July 20X4 Carlise established an internal audit department. The Board is still planning the exact
responsibilities the internal audit department will have, but it is likely that, among other things, they will be
involved in monitoring the internal controls relating to Carlise’s online ticket sales system.
Which ONE of the following considerations is the MOST important when deciding whether or not to rely
on the work performed by Carlise’s internal audit department?
Whether any members of Carlise’s internal audit department hold a professional qualification
Whether the work performed by the internal audit department relates to specific audit assertions over
which UYE & Co have concerns
Whether a separate Audit Committee exists
Whether Carlise’s internal audit department has a work plan which schedules the work they should
perform to the end of the year
9 At his previous audit firm James had several audit clients which had an effective internal audit department.
He asks you whether you would consider asking Carlise’s internal audit department to provide direct
assistance to your audit team.
Which of the following statements relating to direct assistance are valid? (Select as many statements as
you feel is appropriate.)
Direct assistance describes the use of internal auditors to perform audit procedures under the
direction, supervision and review of the external auditor
The external auditor should only use direct assistance in relation to areas of the audit where there the
assessed risk of material misstatement is high
The external auditor should document their review of the work performed by the internal auditors
The internal auditors will be separately liable for any material misstatements in the work they have
performed
Mock exam 2: questions 217