Which of the following is a key attribute that is essential to perform an assurance engagement?
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67% found this document useful (24 votes) 102K views 13 pages MCQ - assurance services © Attribution Non-Commercial (BY-NC) PDF, TXT or read online from Scribd Did you find this document useful?67% found this document useful (24 votes) 102K views13 pages MCQ - Assurance ServicesOriginal Title:MCQ - assurance services Jump to Page You are on page 1of 13 You're Reading a Free Preview Reward Your CuriosityEverything you want to read. Anytime. Anywhere. Any device. No Commitment. Cancel anytime. QUIZ 2 IN AUDITING 1.What element of an assurance engagement does “Cost Accountant” belong? -Practitioner 2.What type of assurance is provided by a practitioner when he/she performs a compilation agreement? -No Assurance 3.The broad range of assurance engagement includes all, but which of the following: -Independent audit of financial historical information 4.Which of the following best describes the objective of an assurance engagement? -Enhance the credibility information to meet the needs of intended users 5.Which of the following feature separates an assurance service from a non-assurance engagement? -Report with a subject matter 6.Which of the following describes relationships among auditing, attest and assurance services? -Auditing is a type of assurance service 7.What element of an assurance engagement does a “proof of cash belong? -Evidence 8.What element of an assurance engagement does “Auditor’s Unqualified Opinion” belong? -Criteria 9.What element of an assuranceengagement does “Accounts Receivable” belong? -Subject Matter 10.Which of the following best describes the attest process? -Providing advisory services based on experience and knowledge skill 11.Which of the following is a key attribute that is essential to perform an assurance engagement? -Confidentiality 12.Which following services a practitioner, who is not independent, may provide? -Reviews but not financial statement audits 13.What element of an assurance engagement does “Measurement of Inventories” belong? -Evidence or Criteria TRUE OR FALSE 1. The demand for assurance engagements arises because the interests of the users of information may be different from that of the interests of those responsible for providing information. TRUE 2. Independence is an attribute necessary to perform assurance engagements and is only required for assurance engagements providers. TRUE 3. The purpose of assurance engagements is to improve the quality of the information provided. TRUE 4. Independence standards are required for audits of public companies, but not for audits of private companies. FALSE 5. The criteria by which an auditor evaluates the information under audit may vary with the information being audited. TRUE 6. Whether a particular engagement is an assurance engagement will depend upon whether it exhibits all of the following three elements – a three party relationship, a subject matter and suitable criteria. FALSE 7. The practitioner normally expresses limited assurance in a positive manner. FALSE 8. Under direct reporting assurance engagement, the evaluation or measurement of the subject matter information is in the form of assertion (representation) by the responsible party that is made available to the intended users. FALSE 9. The responsible party can be one of the intended users, and may be the only one. FALSE 10. CPAs are the exclusive providers of assurance engagements as the subject matter of assurance engagements are limited only to financial information of a business entity. FALSE MULTIPLE CHOICE 1. Which of the following is not part of the attest process? a. Gathering evidence about assertions b. Proving the accuracy of the books and records c. Evaluating evidence against objective criteria d. Communicating the conclusions reached 2. Which of the following would best be described as an assurance service? a. Preparing a report representing a client’s position during a BIR audit b. Working with a client to develop a more efficient method of processing financial What are the key elements of assurance engagement?discusses five elements assurance engagements performed by practitioners exhibit: a three party relationship, a subject matter, criteria, evidence and an assurance report.
Which is an assurance engagement which is an assurance engagement?“An assurance engagement” is an engagement in which a practitioner obtains sufficient appropriate evidence in order to express a conclusion designed to enhance the degree of confidence of the intended users other than the responsible party about the outcome of the measurement or evaluation of an underlying subject ...
What is the importance of assurance engagement?The objective of an assurance engagement is to obtain sufficient appropriate evidence to express a conclusion, providing reasonable or limited assurance, as to whether the audited body has complied with the specified requirements of the appropriate legislation (the 'criteria') in all material respects.
What are the primary attributes of providers of assurance services?Assurance services improve the quality of information to allow for better decision making. Assurance encompasses five key elements: relationship, subject matter, criteria, evidence, and conclusion. Audits are one type of assurance service and are subject to international standards.
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