INTRODUCTION TO AUDITING AND ASSURANCE SERVICES

The process of identifying, measuring, classifying, recording, summarizing and communicating in a logical manner for the purpose of providing financial information for decision-making is

• A. Finance.

• B. Economics.

• C. Auditing.

• D. Accounting.

Any service in which the accounting most firm issues a report about the reliability of an assertion that is made by another party is a(n)

• Tax service.

• Attestation service.

• Accounting and bookkeeping service.

• Management advisory service.

Management and other user rely on the quantitative information provided by _____________ for decision making process.

• Management information systems.

• Accounting.

• Finance

• Auditing.

The financial statements most commonly consists of:

• Balance sheets, the income statement, statement of changes of shareholders equities and the statement of cash flows.

• Balance sheets, the income statement, and the statement of changes in balance sheets.

• Income statement, the statement of changes in balance sheets, and the statement of net working capital.

• Statement of changes in balance sheets, the statement of cash flows, and the retained earnings statement.

The use of the title Chartered Accountant (CA) is regulated by

• The Securities Commission (SC).

• The federal government through the licensing department of the Ministry of Finance.

• The Malaysian Institute of Accountants (MIA).

• State law through a licensing department/agency of each state.

An examination of part of an organization's procedures and methods for the purpose of evaluating efficiency and effectiveness is known as

• Financial statement audit.

• Production audit.

• Operational audit.

• Compliance audit.

Which

of the following services provides the lowest level of assurance about a

company's financial statements?

• Audit of financial statements.

• Review of financial statements.

• These services provide no assurance about a company's financial statements.

• These services provide the same level of assurance about a company's financial statements.

Which one of the following is more difficult to be objectively evaluated?

• Efficiency and effectiveness of operations.

• Compliance with government regulations.

• Presentation of financial statements in accordance with generally accepted accounting principles.

• All three of the above are equally difficult.

In order to perform audit effectively, an internal auditor must be independent of:

• The employer-employee relationship which exists for other employees in the organization.

• The line functions of the organizations.

• The entity.

• All of the above.

The characteristics that distinguishes auditors from accountants is the:

• Auditor’s ability to interpret accounting principles generally accepted in Malaysia.

• Auditor’s ability to interpret Malaysian Financial Reporting Standards.

• Auditor’s education beyond the Bachelor's degree.

• Auditor’s accumulation and interpretation of evidence related to a company's financial statements.