DENETİM - Deneme Sınavı - 2

The term auditor was first used in 1289.

The “Systems Based Audit Approach”, which has come from the 1930s until today and is based on the examination of the internal control structure of the enterprises.

Causes of information risk are:

Owners, Shareholders, Management, & Employees are internal information users.

Investors, Creditors, Government, Customers & Suppliers are external information users.

Optional (Supervisory Audit): It is an audit made by companies or organizations of their own accord without any legal obligation.

Another name for Internal Audit is Performance Audit or Operational Audit.

The purpose of internal audit is to evaluate the efficiency and effectiveness of the activities of the enterprises.

Public Audir or Compliance audit is carried out in order to determine whether the activities or transactions of the enterprises comply with certain methods and rules and the relevant legislation. In compliance audit, it is checked whether the rules determined by an authority are complied with.

Integrity refers to being straightforward and honest in all professional and business relationships. The answer is D.

Risk of material misstatement is the risk that financial statements are materially misstated prior
to audit. It is generated from the client firm. The auditor has no effect on it. It has two components, namely inherent risk and control risk. The answer is C.

Transaction-related audit objectives are:

• Occurrence: The auditor will check whether recorded transactions have actually occurred.
• Completeness: The auditor will check whether all transactions that should be included in the
journals have actually been included.
• Accuracy: The auditor will check whether recorded transactions are stated at the correct amounts.
• Posting and summarization: The auditor will check whether recorded transactions are properly
included in the master files and are correctly summarized.
• Classification: The auditor will check whether transactions included in the client firm’s general
journals are properly classified.

The answer is E.

Balance-related audit objectives focus on not only verification of the account balance but also verification of the detail that supports the account balance. There are eight general balance-related objectives as follows: existence, completeness, accuracy, classification, cut off, detail tie-in, realizable value, and rights and obligations.

The answer is A.

Audit evidence is the information used by the auditor in arriving at the conclusions on which the
auditor’s opinion is based. The answer is C.

In order to obtain sufficient appropriate evidence and to form an audit opinion, the auditor usually
benefits from the following seven audit techniques (ISA 500.A14-A25). These are inspection, observation, external confirmation, recalculation, inquiry, reperformance and analytical procedures. Detail tie-in is one of the managerial assertions. The answer is B.

The risk assessment involves 1) the client acceptance or continuance, 2) understanding of the client firm’s business and 3) industry and preparation of the audit plan.

Risk response involves the processes of obtaining audit evidence.

Reporting involves 1) the evaluation of the audit evidence obtained, 2) forming an audit opinion and 3) preparation of the audit report.

The answer is E.

Materiality is the magnitude of misstatements that could reasonably be expected to influence the economic decisions of users made based on the financial statements. The answer is D.

Internal control is a set of policies and procedures determined to achieve objectives of the client firm’s management related to financial reporting, operations and compliance. The answer is E.

Substantive analytical procedures assess the overall reasonableness of transactions and balances. The answer is B.