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Chapter 2 : Assurance

Authored by Phương Nguyễn

English

University

Used 8+ times

Chapter 2 : Assurance
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15 questions

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1.

MULTIPLE SELECT QUESTION

45 sec • 1 pt

Which two of the following are auditors always required to do on being invited to accept an audit 1engagement?

Ensure they are professionally qualified to act

Ensure they have adequate existing resources to carry out the audit

Obtain references for key personnel within the entity to be audited

Communicate with the predecessor auditors to discover any reasons they should not accept
appointment

Providing evidence on matters where other evidence is not expected to exist

2.

MULTIPLE SELECT QUESTION

45 sec • 1 pt

Which two of the following might indicate that an assurance client could have higher than normal 2inherent or control risk?

Poor recent performance

Strong internal controls

Unusual transactions

The existence of an internal audit department

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Claret LLP, an assurance firm, has the following two clients among its client portfolio.

Tulip Ltd is planning to list on the local stock exchange within the next two years.

High risk

Low risk

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Dhalia Ltd is currently facing financial difficulties and is seeking alternative forms of finance.

High risk

Low risk

5.

MULTIPLE SELECT QUESTION

45 sec • 1 pt

Which three of the following are benefits of an engagement letter in respect of assurance services?

Clearly defines the extent of the assurance provider’s responsibilities

Provides written confirmation of the acceptance of the engagement

Confirms the scope of the engagement

Certifies the assurance provider’s opinion

6.

MULTIPLE SELECT QUESTION

45 sec • 1 pt

Which three of the following procedures should be carried out after the audit firm has decided to 5accept appointment as auditor?

Ensure that the outgoing auditors’ removal/resignation has been properly conducted

Ensure that a resolution has been passed at the general meeting to appoint the new auditors

Perform checks to ensure that there are no legal or ethical reasons why the new audit firm cannot
act as auditor

Submit a letter of engagement to the directors

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The engagement letter should be sent before acceptance of appointment.

True

False

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