Question 1

Which of the following is generally considered to be a defining characteristic of a profession?

Accepted Answer

Professions are typically characterized by a commitment to ethical standards and values beyond just providing a service, often involving a code of ethics.

Question 2

According to ICAS, which of the following areas of focus will play a major part in rebuilding public confidence and promote professionalism in the auditing profession? ?

Accepted Answer

Acting in the public interest is crucial for rebuilding public confidence and promoting professionalism in the auditing profession, as it aligns the auditors' work with the needs and expectations of society.

Question 3

Which of the following have been a criticism of the FRC with regard to oversight of auditors? ?

Accepted Answer

The FRC has faced criticism for all the mentioned reasons: lengthy investigations, limited sanctions, and perceived lack of independence from the auditing profession.

Question 4

In addition to various technical standards IFAC also produces the International Accounting Education Standards. To what extent are these contributing to the convergence of global professional audit and accounting practice? ?

Accepted Answer

The International Accounting Education Standards contribute to convergence to a limited extent because their adoption and implementation vary significantly across different countries and organizations.

Question 5

What does academic research indicate about the usefulness of the extended audit report? ?

Accepted Answer

Academic research suggests that while the extended audit report provides more information, it has not significantly closed the "audit gap," which refers to the difference between what users expect from an audit and what an audit actually provides.

Question 6

Which of the following statements most accurately describes what has happened with regard to audit and non-audit fees earned by firms from the FTSE 100 between 2002 and 2017? ?

Accepted Answer

Audit fees have increased due to stricter regulations and increased scrutiny, while non-audit fees have decreased as companies aim to avoid conflicts of interest and adhere to regulatory guidelines.

Question 7

What reason did Grant Thornton give for choosing to stop auditing FTSE 350 companies in 2018? ?

Accepted Answer

Grant Thornton cited the cost of submitting ultimately unsuccessful tender bids for audit work as the reason for stopping auditing FTSE 350 companies in 2018.

Question 8

Which of the following has NOT been identified as a consequence associated with the growing use of audit data analytics? ?

Accepted Answer

Smaller firms using data analytics to take on larger audits does not necessarily threaten the supremacy of the "big four" audit firms, as these firms have significant resources and expertise to maintain their market position.

Quiz 22: Issues in Auditing