PARTIAL 2017

If the auditor has acted with intent and the audited financial statements constitute the
instrument of the crime of fraud; the auditor will be criminally liable as a subject
active.FALSE, it is an active subject when it benefits financially and the instrument
the crime is the report

In the case of civil liability, the auditor will be responsible when having
acted with intent or negligence, the auditor will issue an audit report with opinion
clean linked to a game of financial statements with significant deviations; and a
the user is harmed by having made a decision with them. FALSE,
because it is not enough for the user to be harmed by having made a decision
about the same but it also has to demonstrate the CAUSE-EFFECT relationship
between the auditor's report and the decision.

3) In the case where an entity has not prepared the cash flow statement, the
the auditor will treat this issue as a limitation in the scope in their report.
FALSE, it is a basic state and consequently a difference with the reference framework.

4) in an entity where the auditor, through procedures, has verified the

existence of cash contributions recorded as irrevocable contributions in the
net worth, the greatest risk of deviations in the financial statements would be
related to the exhibition. TRUE

Public securities should always be measured at net realisable value, since

These assets have a transparent market and a known quotation. FALSE,
because one thing is if it is for speculation and another thing is to wait for the expiration

6) If an entity has applied the revaluation model for fixed assets, a test
Global would be sufficient for the auditor to verify the measurement of such assets.
use at the end. FALSE, because this gives me mathematical verification, others would be missing.
tests

7) In the event that the auditor has detected a material misstatement in the
report of the directory that accompanies the financial statements, it will be
emphasized in the emphasis paragraph of your audit report. FALSE, it goes in the paragraph
about other issues.

8) an uncertainty about a possible ongoing business problem

correctly recorded in the financial statements can impact the audit report as
an adverse opinion. FALSE, because a potential problem of a company in operation is a
IHF does not change the auditor's opinion

Auditor's Report:
In both cases, separately it asks for: identification of the problem, adjustment or impact.
Fundamentals of opinion, opinion, emphasis, using the following table:
ASSET: 3,000,000
LIABILITIES: 1,200,000
PN: 1,800,000
700,000
CASH VARIATION: 250,000

NO SIGNIFICANT: 0 to 6
SIGNIFICANT: 7 to 20%
VERY SIGNIFICANT: MORE THAN 40%

1- The company CERVANTES SA is dedicated to the manufacturing and marketing of

windmills and closes its financial year on 12/31/X1. During the X1 fiscal year
the company decided to apply the revaluation model of assets in use valuing at
close these assets at current value. This application involved an increase of
asset MAJOR VALUE UTILITIES $500,000 increase that was charged against
the account RESULTS FROM REVALUATION, a concept that was presented in the
income statement for the fiscal year X1. On the other hand, you and your audit team
they consider the current value determined at the close by the entity as reasonable. The
The application of the revaluation model was also revealed in a note to the financial statements by the
entity.

PROBLEM: reference frame difference, it is incorrectly assigned as a result

Adjustment:
(R) Result from revaluation 500,000
PN in Revaluation Balance 500,000

Modified opinion reasonably presents except for

There is no emphasis paragraph

The construction company DA VINCI SA is dedicated to carrying out construction projects.

civilians and closes its financial year on 31/12/x1. At the close, the entity possesses a
credit recorded for $900,000 (work certificate) corresponding to a work
public finalization on 01/07/x1. The payment for the work should have been made earlier.
from 01/08/x1, but at the end of the fiscal year it remained unpaid. In addition to this, both the
work contract as the applicable legal regulation establishes that in case of delay
In the payment of work certificates, the contractor shall have the right to collect interest.
for the period of default calculated based on the bank's interest rate
official. The entity calculated the accrued interest as of 31/12/X1 at $150,000, although not
I count them since the public agency announced that it will pay for the certificates of
work, but not the interests. On 31/01/X2, the public entity pays the total amount of the
work certificate for $900,000 and does not pay the interest. For this reason, the company the
01/02/x2 initiates legal actions aimed at demanding the collection of interest
accrued, the demand is for $155,000 (interest accrued as of 01/31/x2). You,
auditor agrees with the amounts of interest calculated by the entity.
the company’s lawyers stated that the result of the legal action is
uncertain. Finally, the entire situation explained above was revealed in a note to
the financial statements as of 31/12/X1.

TWO PROBLEMS:
1- The company should have accounted for the credit with the interests.
Credit
Interests to collect 150,000

It is a difference with the frame of reference

(A+) Credit
150,000 won

2nd problem: IHF is not sure if that credit will be charged

Bad Debt
to credit

quasi seat

except for
in the emphasis paragraph

GUIDE A:

1) The global depreciation testing procedure aims to establish the

reasonableness of the amount of the BU in the financial statements.

FALSE, the reasonableness of the estimate is not analyzed, only the calculation is verified.
of the depreciations. The reasonableness analysis test is used to analyze the
reasonableness of the depreciations for the period.

2) Whenever an entity does not perform the impairment test of the intangibles and
assets for use, the auditor has a work LA, which can only be resolved
carrying out that test himself.
FALSE, the impairment test should be carried out when there are parameters of
devaluation. The test is not done in all cases, there must be an index of
deterioration and in the case of intangibles, it must be done when none has been assigned
a useful life to amortize (key value). In addition, the auditor should not perform the test
although the company may not have done it in due time, it should only be limited to analyzing the
reasonableness of said estimate.

3) A problem detected during the audit process in the audit of a

The controlled company generates the same problem in the controlling company.
TRUE, it may occur that a problem is detected in the controlled company during
the audit process, then the auditor of the controlled entity must take into account that
each type of problem in the first will generate a similar consequence in the second. It is
to say, a NCP difference in the controlled company will result in a
difference NCP in the controlling and it will do the same with the other problems. What can
it occurs that the significance levels are different and therefore the impact on the
report it as well.

4) When a public accountant issues a certification on the legality of funds, they must
report suspicious money laundering operations to the UIF.
FALSE, the obligated parties to report are the CP in their role as auditors and financial statements.
corporate fiduciaries, as long as their clients are obliged to report (According to Art
20 of law 25246) and when they are not but have doubled their sales or assets in a
year or its asset exceeds $20,000,000

5) According to RT 37, when the framework is the legal accounting standards, the
audit is a compliance audit.
FALSE, a compliance audit is when a favorable opinion is given regarding the
processes. When referring to a framework, it means an audit of
reasonableness where the report explains an opinion on the financial statements that respect and reflect the
reasonably reality.

The absence of the minutes book represents a LA regarding the PN that cannot
to be saved by no alternative procedure.
TRUE, there are no other procedures or alternative procedures that address the
non-existence of records, without them it will not be possible to determine the valuation and existence of the
capital movements, nor the entity's intention regarding the financial statements and the activity
from the company.

7) When a company changes its method of depreciation of fixed assets, it must

account for an area due to the differences in depreciation from previous years and the
EECC have an issue with the non-uniform application of accounting criteria.
TRUE, changes in methods generate distortions in the initial balances of the
EECC and therefore an AREA must be accounted for.

8) When there is negligent professional conduct, the auditor may receive a

professional sanction regardless of whether the report has errors or not.
TRUE, professional responsibility shows facets that are characteristic of the
profession of CP and therefore protects the relationship of the professional taken as meaning
individual, with the community of professionals. That is to say, well guided is the profession.

The global impairment testing procedure aims to establish the

formal attribution of the depreciation for the period in the financial statements.
FALSE, the global depreciation test aims to verify the determined useful life.
of each asset, it is a mathematical calculation that starts from the amortization of the previous period,
taking into account the effect of the movements that occurred in the current exercise.

10) At the close of each fiscal year, whenever an entity does not perform the value test
recoverable from intangibles and used goods the auditor has a LA.-
FALSE, the impairment test must be carried out whenever there is a parameter of
devaluation or that it is detected that they are measured above their capacity of
generate income in the future.

11) The auditor of a controlling company could disclaim his responsibility over
the audit of the controlled entity if this situation is mentioned in its report.-
FALSE, the auditor cannot absolve themselves of responsibility towards the controlled company.
he will have to determine whether or not he trusts the work of the other auditor and in case he does not
trust will have an impact on the LA that you must present in your report, if you decide to trust,
You should request the working papers and review them in order to analyze the procedures.
completed.

A modified opinion can originate in an LA.

TRUE, when there is a significant issue in an LA, the opinion of the auditor
it can lead to a modified opinion or one of the except for type. When expressing the reservation, the
The auditor must document the reason for their existence and the additional information.
corresponding.

13) If an auditor is hired shortly before the end of the fiscal year and decides not to
Trust in internal controls, the audit report could result in a
abstention of the opinion.
TRUE, if you decide to rely on the CIs, the auditor will be unable to perform
compliance tests and also trusting in the risk of detection, resulting in a high
audit risk, choosing to refrain from giving an opinion.

14) An auditor who has no working papers but has correctly issued his
The report can only have sanctions related to professional responsibility.
FALSE, it cannot be known that your report has been issued correctly since the main
evidence to determine its reasonableness are the working papers. Therefore, it cannot be
to determine whether there was a wrongful or negligent act in the issuance of the report, therefore it will also be able to

to have civil and/or criminal liability in case they cannot support their actions.

15) When an accountant detects a suspicious money laundering operation with

criminal origin, must inform it in the certification issued even if it is
requested by a regulatory body. FALSE, an accountant who is obligated to
The informer must be an auditor of financial statements or a company trustee, and their clients must be obligated.
by Article 20 of Law 24296 or in case it is not, having doubled its sales or assets or
asset greater than 10,000,000

16) when an entity incorrectly reports information contained in its records

in the financial statements, the auditor should modify their opinion to the extent that
that this error is significant or very significant. FALSE the memory is not part of
from the financial statements and the auditor is not responsible for what is written in it.
GUIDE B:

If an auditor does not have working papers, it could have consequences in all three.
types of responsibilities.-FALSE, the auditor will face professional sanction when not
complies with professional standards, civil liability if causing harm with fault or
harm to someone (there must be a victim who accuses) and criminal responsibility when
act in such a way that causes harm or intends to harm or damage someone in
general. Without having the working papers, you will have professional responsibility and according to
if it has been your intention, you may have one of the other two responsibilities.

2) The management letter explaining the reasons that support the constitution of
A provision for merchandise devaluation is sufficient validation evidence.
of balances in the event that the income statement shows the resulting profit and loss account of the
constitution of the mentioned provision and there is an explanatory note in the
additional information.-FALSE, the management letter is not evidence of
balance validation, serves only as a backup and to give an idea of the result or
beginning of evidence but it is only a manifestation of limitation of liability.

It is correct that in Argentina the external auditor is called a certifying auditor.

FALSE, the external auditor issues a report that explains the reasonableness of the financial statements.
accountable. After a whole auditing process in which procedures are used to
obtain valid and sufficient evidence to express their opinion. An accountant who
the certificate does not express an opinion, nor even a professional technical judgment; the manifestation
it merely intends to show that the information provided by the entity matches certain documentation
observed by the professional.

The procedures indicated in RT17 are mandatory for the auditor.

save the responsibility of your work. - FALSE, to save your responsibility
not only should it be guided by the NCP but also by the code of ethics and law 20488 of
professional incumbencies.

5) A written report signed by a specialist hired by the auditor to

being part of their work team exempts the latter from their responsibility in the
signature of the audit report, it does not even mention that circumstance in the
Same.-FALSE, the auditor is the one who must sign the report and the financial statements referred to.
You can trust the reports from specialists and the work done by your team.
but the auditor's report must be signed solely by the external auditor.

6) In the case of a request by court order, the delivery of the documents of

The work of the auditor on behalf of the audited entity must have explicit approval.
of the auditor.-TRUE, the working papers are exclusive to the auditor and give
belong to him, which must be kept for 10 years in case they are required by
any person or institution as long as there is a justifiable reason. In case of a request
judicial, the professional must preserve the papers to safeguard their work from
audit.
Adjustments for exercises never generate sources or uses of funds.
positions that are regularizing the situation prior to the start of the exercise, without
accept accordingly fund movements. FALSE, the origins and application of
funds show the movements that took place during the period that is being audited; if
If there was an adjustment to the balance of an account, the Source Table should also be adjusted.
and application of funds (COAF) not only adjusts the statement of the previous year but also
also to the balance of this exercise.

8) The accounting in results of the greater value originated by valuing investments

currencies at their quotation value does not imply a source of funds because it does not
I would translate it at that moment in cash, however, when the indicated investments
if they are sold, there will be a source of funds equal to the net value of the sale.-FALSE, the
investments should be valued according to their intention to sell or to hold them
expiry does not matter the source of funds.

9) The sale operations of fixed assets (delivery of fixed assets and collection of
price established for cash or credit) can never generate an application of
funds.-TRUE, there will be an underlying source when a property is sold, not a
application.

10) Long-term merchandise sales (over one year) do not generate

funds movement due to the collection period exceeding the term
considered as current.-FALSE, if a sale was not collected at the end of the fiscal year,
It will not generate a funds movement, it does not need to be a deferred sale.

A clean report can only generate professional sanctions for the auditor.
FALSE, it will be necessary to analyze the intention of the auditor when he incorrectly issued his report.
if it was a scam, concealment or money laundering it will have a criminal sanction or if it
he tried to harm someone in particular, there will be a civil penalty.

Whenever the name of a public accountant is associated with financial statements intended to
in its dissemination, the relationship between the professional and said financial statements must be clearly defined.

exposed between them.-TRUE, the public accountant in charge of auditing the financial statements,
You must sign all the pages of the audited statements in order to establish your actions.
about them.

13) To verify the valuation of pending investments, the procedure

The main thing is the reading of the minutes in which the amount of the purchase is evidenced.
FALSE, the reading of minutes serves to understand the intention of the entity and determine the process.
sending the determination of the existence of intent. To evaluate the investment
permanent (significant influence, control, joint control) I need the financial statements of the
controlled.

14) the auditor has a civil responsibility to society as a whole for the
social commitment that he assumes for his work beyond the contracts in place
signed with the client.-TRUE, the audit has a social purpose since presenting
the audit report is giving an opinion on the reasonableness of the
EECC from a stage to the entire society, not just to the entity it audits.

An adjustment generated by a limitation in the scope will necessarily produce a

indeterminate reservation in the report its impact on the corrected balances
significant.-FALSE, a LA will not generate adjustments in the EECC and in case that the
measurement of that limitation being significant may provoke an opinion of the type except for
(or modified opinion, according to RT 37) and if it is very significant, it will likely generate
an abstention of opinion.

16) Uncertainty about future events may not be generated by a

contingency.-TRUE, it should not be confused with IHF with accounting contingencies, if
both are uncertainties, the contingencies to be considered as such in a
exercise must have had a generating event in that exercise or in previous ones. The IHF
they represent a doubt about the content of some aspects of the financial statements or of the entity in
its set, regardless of when the event that generates it has occurred.

An incorrect valuation of intangibles can lead to an abstention from the

opinion if the problem is significant.-FALSE, a valuation problem will cause a
dif NCP and in case it is significant will generate a modified opinion or of the type
except for, if it is very significant and widespread it will lead to an abstention of opinion.

The impossibility of reviewing the working papers will generate an LA.

TRUE, in case the work papers from the previous year cannot be reviewed,
it will be impossible to verify the initial balances and rely on them, which will cause
a LA and very likely an abstention of opinion.

19) The verification of subsequent payments is a process that allows obtaining

information, although inconclusive, about the integrity of intangibles.
FALSE, the PVs of intangible assets are the analysis of the estimation of the
reasonableness to know if it is capable of generating income in the future and the review of
supporting documentation.

20) The lack of professional secrecy could involve sanctions related to the
professional responsibility.-TRUE, although professional secrecy is
regulated by the code of ethics and the breach of this may lead to sanctions
professionals, in the face of a probable scam or money laundering, law 25246 requires
professional in economic sciences to disclose this professional secrecy and inform
Regarding the possible crime, it could be considered an obstruction and generate a penalty.
penal.

21) When analyzing investments in public debt securities, the auditor should
take into account the entity's intention and eventually verify the VA of the FFF that this
investment would generate.-FALSE, when investments are audited, the most important thing is the
the entity's intention to hold them until their maturity or to buy and sell. Once that
this is known, it should be valued at the acquisition cost plus the accrued interest or to the
NVR (market cost minus necessary expenses for sale) respectively.

22) Characteristics of a certification, a report of limited responsibility and a

audit report.

Certification: it is a manifestation regarding provided information, it does not express an opinion as

there is no audit process that allows you to obtain valid judgment elements and
sufficient. Only the accounting records and supporting documentation are compared and
issue a report on whether it is in accordance with what was granted. There is no issuance of a
professional technical judgment.

Limited review report: the accountant conducts a review by performing certain

audit procedures, without the integrated view of the financial statements, implies a narrower scope
the audit report and does not allow the professional to opine on the reasonableness of the
EECC. Furthermore, the approach is different as it does not consider EECC as a whole.

Audit report: it is a process that integrates all the financial statements viewed as a
everything is the interaction of procedures and risks and allows for the issuance of an opinion
based on the elements of valid and sufficient judgments that constitute reasonableness or
not from the contained information. They provide security.

23) Indicate the characteristics of a false balance and the relationship of the professional.
auditor.
Any person who knowingly publishes, certifies or
authorizes a balance to the corresponding false or incomplete reports, or report to the
assembly or management with falsehood or _____ about important facts to assess the
economic situation of the company whatever the purpose pursued at
verify it. The author must be determined, there must be intent, it must have been published, and there must be a
fact that causes a different decision to be made than would have been taken in case of
the result has not changed. The auditor will not be responsible for the financial statements but rather
takes charge of your report, then if the financial statements were poorly prepared, the
the report will be wrong but there will be no criminal offense. He has no involvement in the issuance of the
EECC except in the subsequent verification regarding NCP.

Any problem that exists in the controlled company will exist in the controlling company.
(assume the same auditor for both).-TRUE, the auditor must take into account
that each type of problem in the first will generate a similar consequence in the second,
always taking into account the levels of significance.

Companies always have the possibility that the auditor may issue a
Clean report if the totality of the adjustment entries that the auditor accepts is accepted.
proposes.-FALSE, if the auditor detects only one issue of dif NCP, he proposes the adjustment and the
my correction will provide a clean report, but there may also be limitations in
the scope of what does not fit will also lead to modifying the auditor's opinion on
the report.
26) When there is deceit, there can only be implication in the responsibility.
professional and criminal, because civil liability relates to fault or
negligence.-FALSE, civil liability is related to fault, intent or negligence.
whenever there is a harmed person, it is not necessary for the crime to be classified
but simply by causing harm it becomes an intentional crime.

27) If an auditor cannot prove the performance of an audit through the

the exhibition of your working papers only incurs civil liability and
professional.-FALSE, if there was intent, it also incurs a criminal penalty and not necessarily.
it will be civil if there is no injured party who invokes the damage caused.

28) A limited review report has NCP as its sensor. -TRUE, it acts
under the same procedures as an audit report but does not see the entity and its financial statements
as a whole but rather a partial vision RT 37.

29) There should be no difference between the actions valued at cost and those valued at
VPP.-FALSE, the assets are valued according to the intention of the entity to hold them.
upon their expiration or selling them beforehand, those valued at the VPP are valued according to the financial statements of

the controlled company.

A problem in the uniformity generated by a reevaluation of the useful life of

The BU must be reflected in the report as a NCP diff problem when it is
significant.-FALSE, the problems of uniformity will impact the report because
they may have future consequences, that is, they will be IHF and will be exposed in the paragraph of
emphasis.

A company has a stake in a foreign company. Its % of ownership of

actions and cost grants joint control. Indicate 3 procedures of
main audits to verify the valuation of the investment.
Review and reading of minutes
Consolidated states
Supporting documentation of the purchase or ownership

32) A company has valued its BC at its historical cost, instead of

its current value. The difference between both accounting measurements is not significant
according to their own significance criteria.-FALSE, the BU are valued at cost
historical less accumulated depreciations, with the limit being the VUE and the VNR.

33) If the auditor conducted any verification of the values in previous audits
recoverable from the BUs and intangibles, it must be done again only if it detects
facts that cast doubt on their recoverability.-FALSE, the recoverable value test
It should only be done when there are devaluation parameters, it is not done all the time.
unless an intangible has an infinite useful life.
the detection of the auditor's complicity for signing a false report on a
Balance can bring civil consequences.-FALSE, it is a criminal offense, civil is when
causes harm to a person.

35) Non-compliance with independence can have civil consequences,

professionals and criminal in the auditor. - FALSE, it may bring professional consequences
because it does not comply with the NCP, the code of ethics and law 20488. Will it be civil or criminal if there is?
fault or intent.

36) 3 procedures to verify a financial debt with abroad that is paid

with monthly and consecutive installments.
Supporting documentation to view the contract
2. Circularization to the bank
3. Subsequent facts

Every operating company should disclose in notes to the financial statements the
import contingent of the total severance payment for dismissal of staff.-FALSE, if
It is underway, there is no risk or contingency that would cause a total layoff.

The fact that an auditor has signed an unqualified report makes it

worthy of a criminal, civil and/or professional sanction if it is determined that the company
incurred significant errors. -FALSE, they must have acted with fault or intent to
having civil or criminal sanctions, will have professional sanctions if acted against the NCP.

39) When there are no qualifications in the report, the auditor is not only responsible
not only for the report but also for the content of the financial statements. -FALSE, the auditor is
The financial statements are the responsibility of the managers.

An auditor who has signed an audit report without qualifications without having
the audit must be sanctioned even if the company has not committed any offense
errors.-TRUE, will have a sanction because he did not comply with the procedures of
established audits, in the NCP, their working papers will be incomplete and may
He heard about problems that he couldn't know because he didn't complete his work.

41) When an auditor does not act independently, they may only face sanctions.
professionals because the concept of independence is defined in a way
professional.-FALSE, he could have acted in a negligent or intentional manner, to deceive or
to cause harm to someone or to provoke a different opinion.

Both negligent action and intentional action could generate consequences for the auditor.
professional responsibilities.-TRUE, can act in a culpable manner or
fraudulent against the NCP, Code of Ethics.

43) Uncertainties about future events modify opinion only when

are significant since when they are also analyzed, they are incorporated into the
emphasis paragraph.-FALSE, the IHF does not change opinion, it is only mentioned in the paragraph
of emphasis.

In civil liability, there must necessarily be at least one victim.

who must at least indicate what their damage was.-TRUE, the victim
there must have been damage, the damage must be identifiable and measurable, and there must be a relationship
causal between the act committed and the damage. The lawsuit must be initiated by the affected party.

The measurement at current values of BU will generate the reestimation of

Devaluation impacts the AREA.-FALSE, the difference impacts an account of the PN
that will not be distributed among the shareholders.

46) The auditor is an obligated party to report when auditing another obligated party.
inform when auditing an obligated subject that they have an asset greater than
A $10,000,000 or its assets or income double in the analyzed period. -FALSE,
obligated subjects always, non-obligated subjects when sales and assets or asset are doubled
greater than $10,000,000.

47) When the auditor is not obligated to report but detects operations
Suspicious of money laundering should report to the UIF for ethical reasons.
FALSE, the auditor is always a obligated party, but it will depend on their client.

48) 2 main tests to see if the BU depreciation is reasonable.

Global test of depreciations
Reasonableness analysis.

GUIDE C:
1) Every LA implies an indeterminate exception in the main opinion. -FALSE, if it is
not significant the LA implies a clean report, if it is very significant it implies an abstention
In opinion, if it is significant, it is a modified opinion - an indefinite caveat.

The review of the fixed assets is validated exclusively with physical evidence.
3) The verification of registration in the corresponding records or the certificate of
A mark is sufficient proof to validate the existence of the good.
4) The review of the taxes accrued in the fiscal year will be sufficient proof regarding
of tax debts in a first audit
A proper review of the expenses and repair account of the BU allows for validation the
existence of the BUs
6) The external auditor cannot deviate from the guidelines of RT37 without it being a
indeterminate reservation by scope.
The scope of a review of financial debts usually involves taking a
sample of the balances at the end of the fiscal year and proceed to confirm with third parties the existence
of the same
8) The HP review allows for the visualization of situations that must be disclosed in notes to the
EECC but they never motivate adjustment entries
A very significant deviation from accounting standards by the audited entity motivates
a abstention of opinion but a partially favorable opinion about the
items not affected by such diversion