You are a manager in Spring & Co. You are reviewing the audit file of Autumn Co which is nearing completion. You have noted several issues during your review. Several working papers have not been signed as reviewed. You are aware that a review has taken place but it is not documented on the audit file. One audit working paper states that a sample of 30 purchase invoices should be tested but the results of the test show that only 25 invoices were tested. Several other areas document that samples sizes were reduced in order to save time. In the subsequent events review section of the file, the audit senior has documented that they have inquired of management whether there have been any subsequent events and were told that there have not been any. No further work was considered necessary as a result. 1. Which of the following statements are true in respect of the reduction In samples sizes? (1) The audit plan has not been followed (2) Sufficient appropriate evidence may not have been obtained (3) Material misstatements may go undetected (4) Those sections will need to be reviewed by a manager and the manager will form a conclusion on the balances. A 1,2 and 3 only B 2 and 4 only C 1,3 and 4 only D All of the above (2 marks) 2.Which of the following statements is true in respect of the audit of subsequent events for Autumn Co? (1) Inqui r y does not provide sufficient appropriate evidence on its own. (2) The auditor has demonstrate lack of professional scepticism (3) A written representation should have been obtained from management confirming that they have disclosed all subsequent events to the auditor. (4) The auditor only needs to perform procedures if they are made aware of any subsequent events. A 1 and 2 only B 1,2 and 3 only C 3 and4 only D All of the above (2 marks) 3. As a result of the qu a lity control issues encountered during the audit of Autumn Co, which of the following actions should now be taken? (1) The offending members of staff have demonstrated a lack of competence and due care therefore the firm should report them to the ACCA to be disciplined for failing to comply with the Code of Ethics. (2) More frequent quality control reviews may need to take place. (3) Further training may be provided to staff (4) The firm's policies and procedures may need to be updated. A 1 and 2 only B 1 and 3 only C 2,3 and 4 only D All of the above (2 marks) 4. Which of the following is NOT a reason for having quality standards such as ISA 220 which auditors must follow? A To reduce the risk of issuing an inappropriate audit opinion B To maintain confidence in the audit process and audit profession C To increase the amount of regulation for auditors to follow D To protect the firm's reputation and minimises the risk of lawsuits brought against the audit firm (2 marks) 5. Which of the following statements are true in respect of review of audit working papers? A All team members' work should be reviewed by someone of manager level or above B All team members' work should be reviewed by the audit partner C All team members' work should be reviewed by someone other than the preparer. D All team members' work should be reviewed by someone more senior than the preparer