Audit and Assurance Quiz

There are two types of assurance engagement: reasonable assurance engagements and limited assurance engagements, There are two types of assurance conclusion: Positive and Negative.

For limited assurance engagement, select the appropriate conclusion given?

• Positive

• Negative

In the context of a statutory audit which THREE of the following are examples of the expectation gap? The belief that:

• The auditor's report certifies the financial statements as correct

• The auditor's principal duty is to detect fraud

• The auditor is employed by the directors

• The auditor checks all transactions

For reasonable assurance engagement, select the appropriate conclusion given?

• Positive

• Negative

For each of the following statements select whether they are true or false. A negative assurance conclusion gives a limited level of assurance

• True

• False

Which one of the following best describes the concept of assurance?

• An assurance firm's high level of satisfaction as to the reliability of an assertion being made by one party for the use of another party

• An assurance firm's satisfaction as to the reliability of an assertion being made by one party for the use of another party

• A user's satisfaction as to the reliability of an assertion being made by another party

• An assurance firm's limited level of satisfaction as to the reliability of an assertion being made by one party for the use of another party

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 engagements

The statement: "Suitable criteria can only be identified for assurance engagements relating to financial statements" is true or false?

• True

• False

For each of the following statements select whether they are true or false. Reasonable assurance is absolute assurance of the correctness of the subject matter

• True

• False

For Report on profit and cash flow forecasts, select what level of assurance you would expect to be given:

• Reasonable

• Limited

For Review of financial information, select what level of assurance you would expect to be given:

• Reasonable

• Limited