Assurance CFAB (revision 1)

Practitioner expresses a conclusion to increase the confidence of intended users on the evaluation of subject matter against criteria

• Assurance engagement

• Audit engagement

• Due Diligence engagement

• Review engagement

Subject matter is prepared by _____

Limited assurance

• high level of assurance but not absolute

• low level of engagement risk

• conclusion : positive (eg. true and fair view)

• None of the above

Reasonable assurance

• low level of assurance
  

• acceptable level of engagement risk
  

• conclusion : negative (nothing has come to my attention)

• High level of assurance

Benefits of assurance is

• independent, professional verification
  

• draws users to deficiencies
  

• prevents error and fraud

• all of the above

In the limitations of assurance,

• sampling is used
  

• audit evidence are persuasive
  

• limitations of accounting system

• all of the above

Audit exemptions, the auditee must meet 2 out of 3 criterias for 2 consecutive financial years. The criteria is

• Turnover/revenue : < 10.2m

• total assets : < 5.1m

• no. of employees : < 50

• none of the above

Professional scepticism is

• questioning mind
  

• being alert to possible misstatements
  

• critical assessment of audit evidence

• all of the above

• none of the above

If client refuses permission to speak to outgoing auditors, the auditor might

• Accept the engagement

• Decline the engagement

If outgoing auditors refuse to reply and communicate with new auditors?

• The auditor can accept, no reason to decline the engagement

• The auditor should decline the engagement

• The auditor should find another audit firm to join the engagement

• none of the above