Seminar. Rules and regulations 1
Question 1
Which of the following is not the reason for regulation of audit services?
a. Risk of wrong opinion.
b. Harmonization of auditing procedures.
c. Adherence of strict ethical code of conduct.
d. No right answer.
Question 2
Which of the following bodies are not in span of control for IFAC?
a. International Auditing and Accounting Standards Board
b. Public Interest Oversight Board
c. International Ethics Standards Board for Accountants
d. Forum of Firms
Question 3
Which of the following values are stated in IFAC Strategy plan 2013-2016:
a. Integrity.
b. Honesty.
c. Lead by example.
d. Expertise.
Question 4
Which of the following is objective of International Auditing and Accounting
Standards Board?
a. To promote understanding of importance of ethics.
b. To promote the value of professional accountants worldwide.
c. To ensure that due process is followed by audit firms.
d. To promote use of ISA worldwide.
Question 5
Define whether the following statement is true or false?
“ISAs are written in the context of an audit of financial statements by an
independent auditor”.
a. True.
b. False.
Question 6
Who has the right to perform audit and sign audit report?
a. Each member of professional staff of accountancy firm.
b. Any member of Recognised supervisory body.
c. Those charged with governance.
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Rules and Regulations
d. An auditor appointed by management.
Question 7
Which of the following is not a responsibility of the auditor?
a. To audit financial statements.
b. To provide an opinion.
c. To request an extraordinary meeting of the company. – it is the right,
NOT the duty
d. No right answer.
Question 8.
The management of large sized entity is unsure about the purpose of external
audit, it is not well understood. You are a member of consulting firm and have
been asked to write some material for inclusion in your firm’s training
materials dealing with these issues in the audit of the large company.
Required:
Draft an explanation dealing with the purpose of an external audit and
its role in the audit of large companies, for inclusion in your firm’s
training materials.
Разделить класс на 2 группы, одна будет представлять менеджмент, а
другая аудиторскую фирму.
10 минут на подготовку
Группа аудиторов – должна «продать» необходимость аудита и заодно
рассказать о его роле и цели.
Группа руководства – должна задавать им вопросы.
Оценить работу каждой группы. Первоначальная презентация аудитора
не должна превышать 5 минут.
Question 9.
The describe the authority of International Standards on Auditing.
Question 10
Which regulation scheme is used at the national level in Russia?
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Seminar. Rules and regulations 3
Question 11
Usually regulation of auditors is performed by Recognised Supervisory Body
(RSB). For example in UK the regulation of auditors is a statutory matter as
detailed in the Companies Act 2006.
Give definition of a Recognised Supervisory Body (RSB).
Which body acts as Recognised Supervisory Body (RSB) in Russia?
Question 12
It is generally more difficult to remove auditors that it is to appoint them. This
is for the simple reason that auditors should not be removed just on the whim
of directors (e.g., because the auditor wants to qualify his opinion and the
directors disagree).
Required:
Explain who can remove the auditor and list the steps that are required.
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