Question 1 (1 point)
CAS 230 Audit Documentation considers factors affecting the form, content and
extent of working papers. Which of the following statements is true as it relates to
audit working papers?
Question 1 options:

The audit file should be prepared in such a way that an individual who is not familiar with auditing
should be able to review the audit file and understand how the audit has been conducted and whet
the evidence collected supports the audit opinion.

The audit file should be prepared in such a way that an individual who is familiar with auditing but n
familiar with the industry of the client should be able to review the audit file and understand how th
audit has been conducted and whether the evidence collected supports the audit opinion.

The audit file should be prepared in such a way that an individual who is familiar with auditing and
industry of the client but not the client itself should be able to review the audit file and understand
how the audit has been conducted and whether the evidence collected supports the audit opinion.

The audit file should be prepared in such a way that an individual who is not familiar with auditing o
with the client should be able to review the audit file and understand how the audit has been
conducted and whether the evidence collected supports the audit opinion.

Question 2 (1 point)
Going concern is a fundamental principle in the preparation of financial statements.
Which of the following statements is correctregarding the assessment of going
concern?
Question 2 options:

The period of management’s assessment of going concern should cover a minimum of 12 months u
to and including the date of the financial statements; if management is unwilling to meet this
minimum period, a qualified opinion or adverse opinion may be appropriate.

The period of management’s assessment of going concern should cover a minimum of 12 months fr
the date of the financial statements; if management is unwilling to meet this minimum period, a
qualified opinion or disclaimer of opinion may be appropriate.

?The period of the auditor’s assessment of going concern should consider the same period used by
management and extend it six months further.

The period of the auditor’s assessment of going concern should be a minimum of 24 months from th
date of the financial statements.

Question 3 (1 point)
Anil, an auditor for Dragonfly Ltd., is conducting a subsequent events review to
ensure that any events that occur after the balance sheet date (December 31, 20X5),
which may require adjustment or disclosure in the financial statements, have been
identified. Which of the following will Anil say is correct regarding the subsequent
event identified?
Question 3 options:
A major accounts receivable customer is in liquidation due to a destructive fire that occurred on
January 10, 20X6 (prior to the audit report being issued): an adjustment should be made to the
financial statements.

A major accounts receivable customer is in liquidation due to a destructive fire that occurred on
January 10, 20X6 (prior to the audit report being issued): there is no need for an adjustment or note
disclosure.

Dragonfly finalized a large insurance claim on December 27, 20X5, with the payout occurring on
January 10, 20X6 (prior to the audit report being issued): an adjustment should be made to the
financial statements.

Dragonfly finalized a large insurance claim on December 27, 20X5, with the payout occurring on
January 10, 20X6 (prior to the audit report being issued): there should be a notes disclosure only.

Question 4 (1 point)
Toward the end of an audit, the auditor obtains a representation letter from
management. Which of the following is correct as it relates to written
representations under Canadian Auditing Standards?
Question 4 options:

?The representation letter should be dated as near as possible to the date of the audit report but is
obtained before the audit report is signed.

The representation letter should be dated after the date of the audit report but is obtained before th
audit report is signed.

The representation letter should be provided on the audit firm’s letterhead and signed by the client
management team.

If management refuses to provide a representation letter that the auditor considers necessary, the
auditor should either qualify or include a disclaimer of opinion in the auditor’s report.

Question 5 (1 point)
North Ridge Inc. is a publicly listed entity that has engaged Edwards and Little LLP
(E