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MCQ - Assurance Services
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MCQ - assurance services
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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