Auditing Principles Module 6Q Answers
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Vanessa SisonAuditing Principles Module 6Q Answers
Uploaded by
Vanessa SisonLyceum of the Philippines
Intramuros, Manila
Auditing and Assurance Principles
Mr. George R. James, CPA
Module 6Q – Answers and Explanations
At a Glance:
1 A 6 D 11 A
2 D 7 A 12 B
3 A 8 D 13 C
4 D 9 D 14 C
5 B 10 D
Explanations:
1 Statement 2 is false because the entire engagement team is required to be independent from the assurance
client.
2 The predecessor auditor is bound by the duty of confidentiality – so it is up to the successor auditor to initiate
communication.
3 In addition, the successor auditor shall ask regarding (1) the reason for change in auditors; and (2) matters
that bear on the integrity of management (such as inconsistencies in statements or representations, or matters
that might cause fraud risk to increase). Choice B is incorrect because this is asked AFTER accepting the
engagement. Choice C and D are not being asked because these matters pertain to the predecessor’s
engagement, and the successor may have a different experience with the client, and should develop his/her
own assessment of risk and own judgment of materiality.
4 Note that both the predecessor and the successor are required to ask permission from the client – successor
shall ask permission to communicate with the predecessor, and predecessor shall ask permission to answer
the queries of the successor.
5 Note that Choice A is a secondary purpose of engagement letters.
6 Refer to Item 14 of Module 6.
7 If the auditor discloses its specific audit procedures to the client, such disclosure shall cause certain procedures
to lose their effectiveness (especially those that require the element of surprise).
10 Note that Choice A is an invalid reason for changing the engagement, while Choices B and C are acceptable
reasons to change the engagement.
12 Omitting reference to the original engagement is made to ensure that readers of the report are not confused
regarding the type of engagement that the auditor is reporting about.
14 The auditor cannot force himself/herself on the client if the client refuses to continue using the auditor’s
services.
