CHAP 1

1. The following is an extract from an independent accountant’s unmodified report

on a profit forecast:
“Based on our review, nothing has come to our attention that causes us to believe
that the accompanying financial statements do not present fairly, in all material
respects … in accordance with International Financial Reporting Standards.”
Which of the following BEST describes the type of assurance provided by this
statement?
A. Positive assurance expressed negatively
B. Negative assurance expressed positively
C. High level of assurance expressed negatively
D. Limited level of assurance expressed negatively

2. The level of assurance given by an assurance engagement will depend on the

type of engagement. What level of assurance would normally be given to an audit
of financial statements?
A.Absolute
B.Reasonable
C.Limited
D.Zero

3. Which of the following is the most appropriate definition of the external audit?
A. The external audit is performed by management to identify areas of deficiency
within a company and to make recommendations to mitigate those deficiencies
B. The external audit is an exercise carried out by auditors in order to give an
opinion on whether the financial statements of a company are materially
misstated
C. The external audit is an exercise carried out in order to give an opinion on the
effectiveness of a company's internal control system
D. The external audit provides negative assurance on the truth and fairness of a
company's financial statement

4. Is the following statement regarding stewardship (người giữ tiền) true or false?
“Directors are stewards of the invesment made by shareholders in a company”
A.True
B.False

5. Which two of the following are elements of an assurance engagement?

(1) A three-party relationship
(2) report
(3) Determination of materiality
(4) An engagement letter
A.(1) and (3) only
B.(1) and (2) only
C.(2) and (3) only
D.(1) and (4) only

6. The person who has responsible for subject matters is

A.Intended user
B.Responsible party
C.Practitioner
D.Responsible party
E. Auditor

7. Which body has responsible for issuing ISAs?

A.IASB
B.IAASB
C.IESBA
D.IASC

8. Which of the following is limitation of the provision of audit engagement

A.Assurance work is carried out by people independent of the entity
B.Unqualified staff may be used on assurance engagements
C.Sampling is used in assurance work
D.The level of assurance provided by an external audit is reasonable assurance but
not absolute assurance

9. Which one of the following statements best describes the evidence obtained and
the opinion given in a reasonable assurance engagement?
A. Sufficient appropriate evidence and a negatively worded opinion
B. Sufficient appropriate evidence and a positively worded opinion
C. A lower level of evidence and a negatively worded opinion
D. A lower level of evidence and a positively worded opinion

10. Which of the following statements is TRUE regarding assurance:

(1) Auditors are required to express an opinion as to whether the financial
statements give a true and fair view;
(2) An audit is a type of reasonable assurance engagement.
A.Both statements are true
B.Both statements are false
C.Satement 1 is false
D.Satement 2 is false

1. Which two of the following are elements of an assurance engagement?

(1) A three-party relationship;
(2) Suitable criteria;
(3) Determination of materiality ;
(4) An engagement letter
A. (1) and (2) only
B. (1) and (3) only
C. (2) and (3) only
D. (1) and (4) only

2. In any assurance engagement, there are three parties involved: the

responsible party, the practitioner and the user. In respect of given subject
matter, which party determines suitable criteria?
A. User
B. Practitioner
C. Responsible party

4. In any assurance engagement, there are three parties involved: the

responsible party, the practitioner and the user. In respect of given subject
matter, which party provide an opinion on whether the subject matter
complies with the criteria?
A. User
B. Practitioner
C. Responsible party
CHAP 2
1, Which of the following statements best reflects the auditor's duty of
confidentiality
A.Auditors may disclose any matters in relation to criminal activities to the police
or taxation authorities, if requested to do so by the police or a tax inspector
B.Auditors may only disclose matters to third parties without their client's consent
if the public interest or national security is involved
C.Auditors may disclose matters to third parties without their client's consent
if it is in the public interest, and they must do so if there is a statutory duty to
do so.
D.Auditors must never, under any circumstances, disclose any matters of which
they become aware during the course of the audit to third parties, without the
permission of the client.

2, You are senior auditor of Smartwear Ltd. The director of Smartwear have
requested you to assist them with the preparation of the statutory financial
statements. Which of the following threats does this situation create?
A.Self-interest
B.Self-review
C.Familiarity
D.Advocacy

3, Your firm has been the external auditor of Dulce Ltd (Dulce) for a number of
years. Lois Janson has been the engagement partner for approximately 6 years.
Dulce is in the process of becoming a listed company and its director have
requested that Lois Janson continue as the engagement partner once the company
listed.
Which ethical issues arising when your firm accept the director’s request?
A.Self-interest
B.Self-review
C.Familiarity
D.Integrity

4, During the external audit of Yummee Ltd you discover that the director has
accounted for research costs inappropriately resulting in a material misstatement in
Yummee’s financial statements. Your firm plans to issue a modified audit opinion
if the misstatement is not corrected. During a conversation with your firm’s audit
partner, Yummee’s managing director, Java Peraya, indicated that it is the
directors’ intention to seek the removal of your firm as external auditors if your
firm issues a modified audit opinion in respect of this matter.
Which of the following is an appropriate action that your firm should consider
taking in response to the conversation between Java Peraya and your firm’s audit
partner.
A.Discuss the issue with the director but don’t request them to correct the
accounting treatment
B.Provide an unmodified audit opinion to retain the audit contract
C.Provide unmodified audit opinion with an Emphasis of matters paragraph
describing the material mistatemnt
D.Consider resignation as the director’s action represents an intimidating
threat and breakdown of trust as well as raising doubts about management’s
integrity

3, Your firm is Yexmarine’s external auditor. Yexmarine’s director has suggested

that the external audit fee should be renegotiated with at least 22% of the fee being
based on the profit after tax of the company as they feel this will align the interests
of your firm and Yexmarine.
Fees based on the outcome or results of work performed are known as …?
A.Self-interest
B.Contingent fees
C.Awards
D.Bonus

4, Your firm’s largest client in the term of fee income is Yexmarine plc. Your firm
has acted for this client for 16 years and, in addition to the statutory audit, provides
a range of non-audit services, including tax planning (for the company and its
individual directors) and consultancy work in respect of Yexmarine’s acquisition
policy. The finance director of Yexmarine plc retired in May this year and was
succeeded by a former member of your firm’s staff who had managed the audit of
Yexmarine plc for the preceding four year.
Which of the followings is not the ethical and professional issues raised by the
situation described above?
A.Self-interest
B.Self-review
C.Familiarity
D.Advocacy

5, Your firm’s largest client in the term of fee income is Yexmarine plc. Your firm
has acted for this client for 16 years and, in addition to the statutory audit, provides
a range of non-audit services, including tax planning (for the company and its
individual directors) and consultancy work in respect of Yexmarine’s acquisition
policy. The finance director of Yexmarine plc retired in May this year and was
succeeded by a former member of your firm’s staff who had managed the audit of
Yexmarine plc for the preceding four year.
Which of the following are the measures which should be implemented by your
firm in order to mitigate any threats to objectivity which might arise?
A. Regular review should be performed to ensure that regular fees are below
recommended threshold
B. (1) Assess the composition of the audit team in the light if this (may need to
remove team members who have a close associated with this ex-employee)
C. Quality control procedures should be in place to ensure a healthy professional
scepticism at all times
D. (1) The use of different teams with separate reporting lines
E. All above measures

6, You have been invited to tender for the audit of Dulce plc, a company that owns
and operates 40 hotels in the south west of England. You have not previously acted
for Dulce, but you are the current auditors of Yexmarine Ltd, a company that owns
and operates hotels in 30 out of 35 towns in which Dulce operates. The hotels
operated by each company offer similar facilities to each other at a similar price.
Which of the following is the principal ethical issue that you may need to consider
when deciding whether or not to tender for the audit of Dulce
A.Professional competence and due care
B.Objectivity
C.Honestly
D.Conflict of interest

7, From a review of the information in audit planning, your audit assistant has
highlighted some of the potential risks to independence in respect of the audit an
client: “Tax fee of taxation service to be based on a percentage of tax saved”.
Which of the following options best identifies the valid threats to independence?
A.Advocacy
B.Intimidation
C.Self-review
D.Self-interest
8, From a review of the information in audit planning, your audit assistant has
highlighted some of the potential risks to independence in respect of the audit an
client: “Firm to represent the client in a dispute with the tax authorities”.
Which of the following options best identifies the valid threats to independence?
A.Advocacy
B.Intimidation
C.Self-review
D.Self-interest

[Lecture note]
1. You are senior auditor of ABC Ltd. The director of XEA have requested you to
assist them with the preparation of the statutory financial statements.
Which of the following threats does this situation create?
A. Self-interest
B. Self-review
C. Familiarity

3. Yummee is your audit client. At Yummee’s most recent board meeting, the audit
fee was discussed. The board members of Ymmee express their concern over the
audit fee, because the company made loss for the year. The board members would
like to know whether the audit can be performed on a contingent fee basis”
According to the Code, should the audit fee be calculated based on contingent fee
basis?
1. Yes
2. No

4. “Auditors should comply with relevant laws and regulations and avoid any
action that discredits the profession”. Which of the following principles of
IESBA’s
code of ethics does this statement mention to?
A. Integrity
B. Objectivity
C. Professional competence and due care
D. Confidentiality
E. Professional behaviour

5. Yexmarine is your new client, this engagement will represent 20% of the
recurring practice income for the firm. Your firm were able to win the client
without it going out to tender as one of the Directors of Yexmarine, Sebastian, is
your partner’s wife. Sebastian were very impressed with one of the audit managers
she met and have asked if he could come and work temporarily in her accounts
department as they’ve had some members of the team leave recently who haven’t
yet been replaced.
Which of the followings are ethical threats in respect of the engagement with
Yexmarine?
(1) Self-interest; (2) Self-review; (3) Advocacy; (4) Intimidation; (5) Familiarity
A. (1) only
B. 1, 2,3
C. 1,2,4
D. 1,2,5
E. 2,4,5

7. During the external audit of Yummee Ltd you discover that the director have
accounted for research costs inappropriately resulting in a material misstatement in
Yummee’s financial statements. Your firm plans to issue a modified audit opinion
if the misstatement is not corrected. During a conversation with your firm’s audit
partner, Yummee’s managing director, Hazel Blue, indicated that it is the directors’
intention to seek the removal of your firm as external auditors if your firm issues a
modified audit opinion in respect of this matter. What kind of threat is External
auditor facing in this case?
A. Self-interest
B. Self-review
C. Intimidation
D. Familiarity
E. Advocacy

12. Which of the following is true of safeguards against threats to the ethical
principles?
A.A safeguard is any specific or considered action that could be taken by the
professional accountant in relation to an identified threat.
B.The action is only considered to be a safeguard if it is found to be effective.
C.A safeguard is only considered to be effective if completely eliminates the threat
to compliance with the ethical principles.
D.Seeking advice on the threat from a third party is an appropriate safeguard in
some circumstances

CHAP 3
CHAP 3
1, There are a lot of reasons which affect to the assurance engagement quality.
Which THREE of the following reasons affect to assurance engagement quality?
A.The superivisor of assurance engagement may fail to communicate the
issues arising to the engagement partner
B.The auditor may perform the right work to an adequate standard
C.The client could be negligent
D.The chief accountant of a company which is a supplier of audited entity could be
incompetent (không liên quan tới audited company -> không chọn)
E.The auditor may not have adequate understanding of the client’s business
2, (Điền vào chỗ trống) Quality controls are ..…… adopted by Certified Public
Accountants to provide reasonable assurance of conforming to professional
standards in performing audit and related services
policies or procedures

3, Reasons affecting to audit quality could come from which of the following
parties?
A.Client
B.Individual auditor
C.Third party
D.Related party
E.Audit engagement partner

4, Which of the followings is/are NOT quality control actions/procedures in

engagement performance phase
A.Reperformance
B.Direction
C.Supervision
D.Review
E. Consultant

5, Who is responsible for direction of engagement performance?

A.Members of audit committee of audited entity
B.Board of director of the audited entity
C.Board of management of the audited entity
D.Engagement partner
E. Auditor and auditor assitant

6, Which of the following statements is false relating to review actions in the audit
firm
A.The review will help to assess the sufficiency and appropriatesness of obtained
audit evidence
B.The review is the obligatory procedure according to law and regulations
C.Engagement quality control review (EQCR) is performed by engagement
partner (EQRC phải được review bởi một người not involved engagement)
D.A “hot review” is a review carried out by a partner not otherwise involved in the
engagement or an external consultant
E. Engagement quality control review (EQRC) is performed by a suitabily qualified
partner or other person in the firm not otherwise involved in the engagement

7, Which of the following is the quality control procedure of audit firms

A.Reperform the control activities of audited entity which auditor suspected that
they are ineffective (không liên quan quality control procedure)
B.All work performed by junior staffs must be review by a higher-level staff
C.Observe the business operations of audited entity and assess the risk (đây là thủ
tục kiểm toán không phải thủ tục kiểm soát)
D.Allocate experienced and competent staff to the engagement
E. Inquiry the employees of audited entity about the reasons of figures differences

8, How many elements of an audit quality control system (HALEEM)?

A.4
B.5
C.6
D.7

9, Which ONE of the followings is NOT a main element of a firm’s quality control
system
A.Engagement performance
B.Monitoring
C.Risk assessment process
D.Acceptance and continuance of client relationships and specific engagements
E. Ethical requirements

10, Which of the following purposes are NOT purposes of cold reviews (thực hiện
sau khi cuộc kiểm toán hoàn tất >< thực hiện trước khi bắt đầu là hot reviews)?
A.Ensure to compliance with IFRS, UK GAAP, ISA
B.Identify systemic deficiencies (phát hiện những khiếm khuyết của hệ thống kiểm
soát)
C.Concentrates on significant judgements made and conclusions reached in
formulating the auditor’s report (đây là mục đích của hot review)
D.Take remedial actions

11, The audit firm shall establish monitoring process designed to provide it with
reasonable assurance that the policies and procedures relating to system of quality
control are relevant, adequate, and operating effectively. Which ONE of the
following statements relating to monitoring of quality control partner is true
A.The quality control partner must test the quality control procedures at least
weakly to ensure the firm is in compliance
B.The quality control partner must test the quality control procedures at least
monthly to ensure the firm is in compliance
C.The quality control partner must test the quality control procedures at least
quarterly to ensure the firm is in compliance
D.The quality control partner must test the quality control procedures at least
annually to ensure the firm is in compliance

4. Which of the following statements is false relating to review actions in the

audit firm?
A.The review will help to assess the sufficiency and appropriateness of obtained
audit evidence.
B.The review is an obligatory procedure according to law and regulations.
C.Engagement quality control review (EQCR) is performed by engagement
partner.
D.A ‘hot review’ is a review carried out by a partner not otherwise involved in the
engagement or an external consultant.

5. Which of the following statements are TRUE relating to review actions in the
audit firm?
A.A ‘hot review’ is a review carried out by an independent partner after the
auditor’s report is signed. F (before)
B.Engagement quality control review (EQCR) is performed by a suitably
qualified partner who is NOT involved in the engagement.(T)
C.The review is NOT an obligatory procedure according to law and regulations.
(F)
D.The review will help to assess the sufficiency and appropriateness of
obtained audit evidence. (T)

6. Which THREE of the following procedures should be carried out after the audit
firm has decided to accept nomination as auditor?
A.Ensure that the new auditors ’appointment is valid.
B.Communicate with the outgoing auditors to discover any reasons they should not
accept appointments.
C.Set up and submit a letter of engagement to the directors of the company.
D.Ensure that the outgoing auditors’ removal/resignation has been properly
conducted.