DENETİM

To respect the confidentiality of information acquired as a result of professional and business relationships, and therefore, not disclose
any such information to third parties without proper and specific authority, unless there is a legal or professional right or duty to disclose, nor use the information for his/her personal advantage or for the
advantage of third parties.

This is related to independence.

Acceptance is not related to human resources but it is before that step.

The sentence is related to competence.

Monitoring is the correct answer.

The risk whose responsibility lies on the firm not the auditor is risk of material misstatement.

The answer is business risk.

Completeness: The auditor will check whether all amounts that should be included have actually been included.

The auditor cannot guarantee 100% correctness because his/her findings are based on evidence selected through audit sampling.

Perform test of controls is not sub stage of reporting.

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.