ca_exm_au2_2009-03文档.pdf

CGA-CANADA ADVANCED EXTERNAL AUDITING [AU2] EXAMINATION March 2009 Marks Time: 4 Hours 30 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: 1 1 /2 marks each a. In which of the following audit areas is a CGA most likely to spend relatively more time in response to recent changes in the audit risk model? 1) Confirming accounts receivable balances 2) Assessing a client’s compliance with environmental regulations 3) Benchmarking the client’s operations against those of other companies in the industry 4) Using system-oriented computer-assisted audit techniques b. Which of the following elements is most likely to represent a motivation that increases the likelihood of a material financial reporting fraud, as indicated in the “fraud triangle” model of fraud? 1) Numerous related party transactions 2) Management’s poor ethical standards 3) Inadequate profitability 4) The chief executive officer also serves as the chair of the board of directors c. Which of the following situations is least