ASR CH. 1

Which three of the following are benefits of assurance work?

• an independent, professional opinion

• additional confidence given to other related parties

• testing as a result of sampling is cheaper for the responsible party

• judgements on estimates can be conclusive

• assurance may act as a deterrent to error or fraud

Assurance services are required by law.

• True

• False

Reasonable assurance is a high level of assurance.

• True

• False

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

• A user

• A subject matter

• Suitable criteria

• An assurance file

Which three of the following describe aspects of the expectation 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

In respect of given subject matter, which party determines the suitable criteria?

• User

• Practitioner

• Responsible party

In respect of given subject matter, which party provides an opinion on whether the subject matter complies with the criteria?

• User

• Practitioner

• Responsible party

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

• Sufficient appropriate evidence and a negatively worded opinion

• Sufficient and appropriate evidence and a positively worded opinion

• Low level of evidence and negatively worded opinion

• Low level of evidence and a positive we will get opinion

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

• True

• False

The negative assurance conclusion gives a limited level of assurance

• True

• False