Multiple choice question. Please answer 1-5

(1) Which of the following procedures would an auditor most lIkely perform in searching for unrecorded payables? (a) Reconcile receiving reports with related cash payments made just prior to (b) Compare the ratio of accounts payable to purchases with the prior year's (c) Vouch a sample of creditor balances to supporting invoices, receiving reports, (d) Compare cash payments occurring after the balance sheet date with the list year-end ratio. and purchase orders. of creditors at year-end. (2) An auditor should not accept a management consulting engagement it: The engagement is with a continuing audit client. (a) (b) The engagement is with a continuing audit client, which is a public company. (c) The engagement would involve making management decisions for an audit (d) The engagement would require the review of the work of another auditor. client. If accounts receivable turned over 8.2 times in 2016 as compared to only 6.1 times in 2017, it is possible that there were (a) (b) (c) More thorough credit investigations made by the company late in 2016. (3) Unrecorded credit sales in 2017 Unrecorded cash receipts in 2016 (d) Fictitious sales in 2017. In which of the following situations would an auditor ordinarily choose between expressing an "except for" or an adverse opinion? (4) The auditor did not observe the entity's physical inventory and is unable to become satisfied as to its balance by other auditing procedures The financial report fails to disclose information that is required by the accounting standards. The company has material inherent uncertainties affecting the financial report. Events disclosed in the financial report causes the auditor to have substantial doubt about the entity's ability to continue as a going concern. (a) (b) (c) (d) The Trust Deed of XYZ Ltd provides that external loans should not exceed three times the amount of shareholders' funds. You have become aware that an issue of debentures takes the relevant ratio to 4.1. As auditor you must: (a) Immediately advise ASIC in writing. (b) Advise the Trustee within one month of becoming aware of the breach. (c) Include the matter in your audit report (d) Advise the company in writing and send a copy to the Trustee within 7 days. 5)