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ICAP CA Audit and Assurance Flashcards
55 question-and-answer cards covering Audit and Assurance as it is examined in ICAP CA. 24 of them are printed below, taken from across the deck — no signup, no paywall on the preview.
24 sample cards from the Audit and Assurance deck
Sampled from the end of the deck, so these are different cards from the ones shown on the syllabus page.
What is a control deficiency under ISA 265?
A deficiency exists when a control is designed, implemented or operated so that it is unable to prevent, or detect and correct, misstatements on a timely basis; or when a control necessary to do so is missing.
What is a 'significant deficiency' in internal control and to whom must it be reported?
A deficiency (or combination) that, in the auditor's professional judgement, is of sufficient importance to merit the attention of those charged with governance; it must be communicated to them in writing on a timely basis (and other deficiencies to management).
What does 'sufficient appropriate audit evidence' mean (ISA 500)?
Sufficiency is the measure of the quantity of evidence; appropriateness is the measure of its quality (relevance and reliability). Both are needed to support the audit opinion; more evidence is needed when risk is higher or quality is lower.
State the ISA 500 hierarchy of evidence reliability.
Evidence is more reliable when: obtained from independent external sources; generated internally under effective controls; obtained directly by the auditor; in documentary form (paper/electronic) rather than oral; and original rather than photocopies/facsimiles.
List the main procedures used to obtain audit evidence.
Inspection, observation, external confirmation, recalculation, re-performance, analytical procedures, and inquiry. (Mnemonic: AEIOU + RR / 'inspection, observation, inquiry, confirmation, recalculation, re-performance, analytical procedures'.)
What are the financial statement assertions about classes of transactions and events?
Occurrence, Completeness, Accuracy, Cut-off, and Classification (and Presentation).
What are the financial statement assertions about account balances at period end?
Existence, Rights and obligations, Completeness, and Valuation and allocation (plus accuracy/classification and presentation).
Which audit procedure provides the strongest evidence over the existence of a year-end receivables balance?
Direct external confirmation of balances from customers (positive confirmation), supplemented by review of after-date cash receipts.
How does an auditor obtain evidence over existence and condition of inventory?
By attending the physical inventory count, observing the count procedures, performing test counts (floor-to-sheet and sheet-to-floor), and reviewing for damaged/obsolete (slow-moving) items affecting valuation.
What is the key direction of testing to verify completeness vs occurrence?
For completeness, test from source documents/records forward to the ledger/financial statements. For occurrence/existence, test from the ledger/financial statements back to supporting documents.
What is audit sampling?
The application of audit procedures to less than 100% of items within a population such that all sampling units have a chance of selection, enabling the auditor to draw a conclusion about the entire population.
Distinguish statistical from non-statistical sampling.
Statistical sampling uses random selection and probability theory to measure and evaluate sampling risk quantitatively. Non-statistical sampling relies on the auditor's judgement to select the sample and evaluate results, without measuring sampling risk statistically.
Define sampling risk and non-sampling risk.
Sampling risk: the risk that the auditor's conclusion based on a sample differs from the conclusion if the whole population were tested. Non-sampling risk: the risk of a wrong conclusion for reasons unrelated to sample size (e.g. inappropriate procedures, misinterpretation, human error).
What is the objective of the auditor regarding subsequent events (ISA 560)?
To obtain sufficient appropriate evidence that events occurring between the period end and the date of the auditor's report that require adjustment of, or disclosure in, the financial statements are appropriately reflected.
What is the auditor's responsibility for events discovered between the date of the report and the issue of the financial statements?
The auditor has no obligation to perform procedures after the report date, but if a material fact comes to attention that would have affected the report, the auditor must discuss it with management, and if the FS are amended, perform procedures and re-date/extend the report.
What is the going concern basis of accounting?
The assumption that the entity will continue in operation for the foreseeable future (at least 12 months from the period end) and has neither the intention nor the need to liquidate or cease trading.
Give three indicators that may cast doubt on an entity's going concern status.
Financial: net liabilities, recurring losses, inability to pay creditors/loan defaults, adverse key ratios. Operating: loss of key management/market/supplier, labour difficulties. Other: pending litigation, non-compliance with regulations.
How is the audit opinion affected if a material going concern uncertainty exists but is adequately disclosed?
The auditor expresses an unmodified opinion but includes a separate 'Material Uncertainty Related to Going Concern' section in the report drawing attention to the disclosure.
What are written representations and why are they obtained (ISA 580)?
Written statements by management provided to the auditor confirming certain matters or supporting other evidence (e.g. that management has fulfilled its responsibilities and disclosed all relevant information). They are necessary audit evidence but are not sufficient on their own for the matters they cover.
What is the purpose of the overall review of the financial statements at the final stage of the audit?
To assess, using analytical procedures and overall evaluation, whether the financial statements as a whole are consistent with the auditor's understanding of the entity and give a true and fair view, and whether the accounting policies and disclosures are appropriate.
Under ISA 700, what must the auditor conclude before forming an opinion?
Whether reasonable assurance has been obtained that the financial statements as a whole are free from material misstatement, by evaluating whether sufficient appropriate evidence was obtained, uncorrected misstatements are immaterial, and the FS comply with the framework (including adequate disclosure).
What are the three types of modified audit opinion and the two reasons that cause them?
Types: Qualified, Adverse, and Disclaimer of opinion. Reasons: (1) the financial statements are materially misstated; or (2) inability to obtain sufficient appropriate audit evidence (scope limitation).
When is a qualified opinion ('except for') issued versus an adverse or disclaimer of opinion?
Qualified: misstatement or scope limitation is material but NOT pervasive. Adverse: misstatements are material AND pervasive. Disclaimer: inability to obtain evidence is material AND pervasive.
What is the difference between an Emphasis of Matter paragraph and a Key Audit Matters section?
Emphasis of Matter draws users' attention to a matter already appropriately presented/disclosed in the FS that is fundamental to understanding; it does not modify the opinion. Key Audit Matters (ISA 701) are matters of most significance in the current audit, selected from those communicated to those charged with governance, reported for listed entities.
What this deck covers
The Audit and Assurance deck follows the ICAP CA Audit and Assurance syllabus — 7 chapters and 19 topics — so questions land on material that is genuinely examinable rather than trivia around it. That works out to roughly 7.9 cards per chapter.
Answers are written to be recallable, not just readable — averaging about 228 characters, which is long enough to carry the reasoning and short enough to say out loud.
A deck like this earns its keep on the second and third pass. Read the syllabus first so you know the shape of the subject, then use the cards to find the specific facts that have not stuck.
Audit and Assurance flashcards FAQ
How many Audit and Assurance flashcards are in this ICAP CA deck?
55 cards. This page previews 24 of them, sampled evenly across the deck so you can judge the difficulty before installing anything.
Are these ICAP CA flashcards free?
Yes. The preview here is free to read with no signup, and the full 55-card deck is free inside the Examius app.
What do the Audit and Assurance cards cover?
They follow the ICAP CA Audit and Assurance syllabus — 7 chapters and 19 topics — so the questions track what is actually examinable.
How should I use these flashcards?
Read the syllabus first so you know the shape of the subject, then drill the deck. Examius schedules each card with spaced repetition, so cards you keep missing come back sooner and ones you know drift further apart.