Auditors seek written representations from management to support oral representations that have been made during the course of the audit.
Which of the following would require a written representation in relation to a statutory audit?
(i)The directors have fulfilled their responsibility for the preparation of the financial statements (ii)The accounting policies selected and applied by management are appropriate
(iii) A material item, subject to management judgement, for which no other evidence could
reasonably be expected to exist

• A. (i) only
• B. (i) and (iiii) only
• C. (ii) and (iii) only
• D. (ii) only

As related parties are not independent of each other, many financial reporting frameworks establish specific accounting and disclosure requirements for related party relationships, transactions and balances to enable users of the financial statements to understand their nature and actual or potential effects on the financial statements.
Which of the following sources of information may not assist the auditor in identifying related parties?

• A. Prior year working papers and disclosures
• B. Enquiry of management
• C. Work on employee's personal tax
• D. Statutory books and returns

Robert Sen is performing the audit of financial statement of Loko Plc., the objective is to express an opinion as to whether the financial statements are prepared, in all material respects, in accordance with an applicable financial reporting framework.
Which of the following statements is correct about the preliminary judgment about materiality of financial statements of Loko Plc?

• A. This is the median average amount by which Robert Sen believes the statements of Loko Plc could be misstated and still not affect the decisions of reasonable users.
• B. This is the maximum amount by which Robert Sen believes the statements of Loko Plc could be misstated and still not affect the decisions of reasonable users.
• C. This is the minimum amount by which Robert Sen believes the statements of Loko Plc could be misstated and still not affect the decisions of reasonable users.
• D. This is the mean average amount by which Robert Sen believes the statements of Loko Plc could be misstated and still not affect the decisions of reasonable users.

Dan Lawrence is the auditor of Nava Ltd. The directors are Bernard Russell, Pauli Morin and Cyndi Clifford. They are also the only shareholders owning 35% of total shares by Russell and Morin and the rest by Cyndi. Recent dispute between Russell and Morin arises that Dan believesmay be impossible to resolve. However, Morin requested Dan to provide her with details of all last year purchases through company's accounts by Russell and Cyndi. Dan Lawrence has all the company's books and records in his office.
What would be the most appropriate action by Dan Lawrence when Pauli Morin asked him to disclose company's accounts details?

• A. Provide the relevant information before taking the consent from other directors.
• B. Decline the request of Pauli Morin even if she has the controlling interest in the company.
• C. Provide with all the relevant information as was requested by Pauli Morin because she has the controlling interest in the company.
• D. Arrange dispute resolution meeting and find a way to resolve the dispute between Russell and Morin.