Podcast
Questions and Answers
What considerations should an auditor make before using the work of another auditor?
What considerations should an auditor make before using the work of another auditor?
- Financial stability and reputation of the other auditors
- Independence and competence of the other auditors (correct)
- Familiarity with the bank's clients by the other auditors
- Number of audits conducted by the other auditors
Which phase of the audit process may be helpful in identifying related party transactions?
Which phase of the audit process may be helpful in identifying related party transactions?
- Reporting phase
- Planning phase (correct)
- Review phase
- Execution phase
According to PSA 570, what does the auditor consider regarding the bank's ability to continue as a going concern?
According to PSA 570, what does the auditor consider regarding the bank's ability to continue as a going concern?
- Materiality of transactions
- Events or conditions that may cast significant doubt (correct)
- Past audit findings
- Frequency of financial reporting
What event could indicate significant doubt on a bank's ability to continue as a going concern?
What event could indicate significant doubt on a bank's ability to continue as a going concern?
In the context of external auditors, what is a key aspect related to accreditation?
In the context of external auditors, what is a key aspect related to accreditation?
When considering the work of another auditor, what evidence should the auditor obtain about the adequacy of that work?
When considering the work of another auditor, what evidence should the auditor obtain about the adequacy of that work?
What is necessary for a bank to have in order to reduce inherent and control risks to levels less than high?
What is necessary for a bank to have in order to reduce inherent and control risks to levels less than high?
Why might relatively small misstatements have a significant impact on banks with high leverage?
Why might relatively small misstatements have a significant impact on banks with high leverage?
What factor might call into question the appropriateness of management's use of the going concern assumption in a bank?
What factor might call into question the appropriateness of management's use of the going concern assumption in a bank?
Why is it often necessary for auditors to use the work of other auditors in different locations where a bank operates?
Why is it often necessary for auditors to use the work of other auditors in different locations where a bank operates?
What consideration guides an auditor in assessing materiality for a bank audit, especially with high leverage?
What consideration guides an auditor in assessing materiality for a bank audit, especially with high leverage?
Why do relatively small misstatements in a bank become significant despite their size?
Why do relatively small misstatements in a bank become significant despite their size?
What is solvency risk in banking?
What is solvency risk in banking?
What is transfer risk in banking?
What is transfer risk in banking?
What is a common risk banks may face regarding ownership?
What is a common risk banks may face regarding ownership?
What are examples of fraudulent activities that may occur within a bank?
What are examples of fraudulent activities that may occur within a bank?
How does closely held ownership in banks affect management?
How does closely held ownership in banks affect management?
Which type of risk involves a counterparty's obligation not being in their home currency?
Which type of risk involves a counterparty's obligation not being in their home currency?
