Title 3.-F8-AOF-Question-book-Jan-2021.pdf ✅

AOF ACCA Paper F8 – Audit and Assurance Question practice 1 ACCA F8 QUESTION BOOK Jan 2021 Ngo Nhu Vinh, PhD, FCCA Dinh Thi Thu Ha, PhD, ACCA Nguyen Thu Hao, MA, FCCA
AOF ACCA Paper F8 – Audit and Assurance Question practice 2 SECTION 1: AUDIT AND ASSURANCE ENGAGEMENTS 3 1.1. THEORY QUESTION – AUDIT and assurance engagements 3 1.2. MCQ – AUDIT and assurance engagements 4 SECTION 2: CODE OF ETHICS AND CONDUCT 5 2.1. THEORY QUESTION - ETHICS 5 2.2. MCQ - ETHICS 7 2.3. CASE STUDY - ETHICS 10 SECTION 3: RISK ASSESSMENT 12 3.1. THEORY QUESTION – RISK ASSESSMENT 12 3.2. MCQ – RISK ASSESSMENTS 14 3.3. CASE STUDY - Risk assessment 17 SECTION 4: AUDIT PLANNING AND DOCUMENTATION 21 4.1. THEORY QUESTION – Audit planning and documentation 21 4.2. MCQ – Audit planning and documentation 25 SECTION 5: INTERNAL CONTROLS 27 5.1. THEORY QUESTION – internal control 27 5.2. MCQ - INTERNAL CONTROL 28 5.3. CASE STUDY - Internal control 31 SECTION 6: AUDIT SUBSTANTIVE PROCEDURES 34 6.1. THEORY QUESTION – subtantive procedures 34 6.2. MCQ – SUBSTANTIVE PROCEDURES 36 6.3. CASE STUDY - Substantive procedures 39 SECTION 7: REPORTING 41 7.1. THEORY QUESTION - Reporting 41 7.2. MCQ Audit report 42 7.3. CASE STUDY: Audit report 45

AOF ACCA Paper F8 – Audit and Assurance Question practice 4 1.2. MCQ – AUDIT AND ASSURANCE ENGAGEMENTS 1. Which of the following is the most appropriate definition of the external audit? A 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. B The external audit is an exercise carried out in order to give an opinion on the effectiveness of a company's internal control system. C The external audit is performed by management to identify areas of deficiency within a company and to make recommendations to mitigate those deficiencies. D The external audit provides negative assurance on the truth and fairness of a company's financial statements 2. Is the following statement regarding stewardship true or false? Directors are stewards of the investment made by shareholders in a company. A True B False 3. 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 4. Who normally appoints the external auditors of a company? A Directors B Shareholders C Audit committee D Senior management 5. The level of assurance provided by an external audit is absolute. Is this statement true or false? A True B False