CFAB Assurance

Which three of the following describe aspects of the expectations gap with respect to the external audit?

• Users do not understand the meaning of the audit opinion

• Users are not aware of the limitations of the audit process

• Users do not appreciate that reasonable assurance is a low level of assurance

• Users do not understand what the audit process involves

Which two of the following are limitations of the provision of assurance?

• Assurance work is carried out by people independent of the entity

• Sampling is used in assurance work

• Client systems have inherent limitations

• Unqualified staff may be used on assurance engagement

In any assurance engagement, there are three parties involved: The responsible party, the practitioner and the user. Which party determines the suitable criteria?

• User

• Practitioner

• Responsible party

In any assurance engagement, there are three parties involved: The responsible party, the practitioner and the user. Which party provides an opinion on whether the subject matter complies with the criteria?

• User

• Practitioner

• Responsible party

A statutory audit gives reasonable assurance that the financial statements give a true and fair view.

• True

• False

Which one of the following statements best describes the evidence obtained and the opinion given in a reasonable assurance engagement?

• Sufficient appropriate evidence and a negatively worded opinion

• Sufficient appropriate evidence and a positively worded opinion

• A lower level of evidence and a negatively worded opinion

• A lower level of evidence and a positively worded opinion

A negative assurance conclusion gives a limited level of assurance.

• True

• False

Reasonable assurance is absolute assurance of the correctness of the subject matter.

• True

• False

What are the correct answers?

Which three of the following are key elements of a general assurance engagement?

• A user

• A subject matter

• Suitable criteria

• An assurance file