Cga Au2 Past Exam
CGA-CANADA ADVANCED EXTERNAL AUDITING [AU2] EXAMINATION March 2012 Marks
30
Time: 4 Hours
Question 1 Select the best answer for each of the following unrelated items. Answer each of these items in your examination booklet by giving the number of your choice. For example, if the best answer for item (a) is (1), write (a)(1) in your examination booklet. If more than one answer is given for an item, that item will not be marked. Incorrect answers will be marked as zero. Marks will not be awarded for explanations. Note:
11/2 marks each
a.
Which of the following best describes the “expectation gap”? 1) The difference between management’s estimation of materiality and the auditor’s calculation of materiality 2) The difference between the public’s perception of the goals of standard-setting accounting and assurance bodies and their actual role 3) The difference between what current professional standards require and the public’s perception of auditors’ performance 4) The difference between the public’s perception of the level of assurance offered by audits and the actual level of assurance provided
b. Which of the following actions is most likely to violate the CGA-Canada Code of Ethical Principles and Rules of Conduct? 1) Designing and implementing an information system for a public company that is not an audit client 2) Providing accounting and bookkeeping services to a private company that is an audit client 3) Providing internal audit services to a public company that is an audit client, with pre-approval from the audit committee 4) Recommending a tax shelter to a client that is a public company, with pre-approval from the audit committee c. Which of the following is a category of general computer controls? 1) 2) 3) 4) Systems privacy and security controls Maintenance, management, and privacy controls Systems acquisition, development, and maintenance Operations, security, and information systems support
Continued...
EAU2M12 ©CGA-Canada, 2012 Page 1
30
Time: 4 Hours
Question 1 Select the best answer for each of the following unrelated items. Answer each of these items in your examination booklet by giving the number of your choice. For example, if the best answer for item (a) is (1), write (a)(1) in your examination booklet. If more than one answer is given for an item, that item will not be marked. Incorrect answers will be marked as zero. Marks will not be awarded for explanations. Note:
11/2 marks each
a.
Which of the following best describes the “expectation gap”? 1) The difference between management’s estimation of materiality and the auditor’s calculation of materiality 2) The difference between the public’s perception of the goals of standard-setting accounting and assurance bodies and their actual role 3) The difference between what current professional standards require and the public’s perception of auditors’ performance 4) The difference between the public’s perception of the level of assurance offered by audits and the actual level of assurance provided
b. Which of the following actions is most likely to violate the CGA-Canada Code of Ethical Principles and Rules of Conduct? 1) Designing and implementing an information system for a public company that is not an audit client 2) Providing accounting and bookkeeping services to a private company that is an audit client 3) Providing internal audit services to a public company that is an audit client, with pre-approval from the audit committee 4) Recommending a tax shelter to a client that is a public company, with pre-approval from the audit committee c. Which of the following is a category of general computer controls? 1) 2) 3) 4) Systems privacy and security controls Maintenance, management, and privacy controls Systems acquisition, development, and maintenance Operations, security, and information systems support
Continued...
EAU2M12 ©CGA-Canada, 2012 Page 1