CHAPTER 1 2 3 FUNDAMENTAL AUDITING

Which three of the following constitute possible subject matter which may be evaluated for the purposes of an assurance engagement?

• A Data

• B Systems or processes

• C Corporate governance

• D IFRS

Which two of the following describe the roles of the responsible party in any assurance engagement?

• A Setting the criteria of the assurance engagement

• B Gathering evidence on the subject matter

• C Issuing an opinion on the subject matter against the criteria set

• D Preparing the subject matter

Which one of the following describes the assurance provided and conclusion given in a reasonable assurance engagement?

• A Absolute and negative

• B High and negative

• C High and positive

• D Low and positive

Which three of the following statements form part of the generally accepted definition of 'fair', in the context of 'a true and fair view'?

• A The information is free from discrimination and bias

• B The accounts have been correctly extracted from the company's books and records.

• C The information complies with generally accepted accounting practice.

• D The accounts reflect the commercial substance of the company's underlying transactions.

The following is an extract from an independent accountant's unmodified report on a profit forecast:

"Based on our examination of the evidence supporting the assumptions, nothing has come to our attention which causes us to believe that these assumptions do not provide a reasonable basis for the forecast."

Which one of the following best describes the types of wording and of assurance provided by this statement?

• A High level of assurance expressed using a negative form of words

• B Limited level of assurance expressed using a negative form of words

• C Reasonable assurance expressed using a negative form of words

• D Negative assurance expressed using a positive form of words

• A

• B

• C

• D

• E

• A

• B

• C

• D

• E

Which two of the following statements best describe the statutory audit?

• A It leads to a certification of the correctness of the financial statements.

• B It is an independent examination.

• C It is an opinion on the truth and fairness of the financial statements.

• D It may be carried out by both external and internal auditors.

ANSWER ADDITION F

• A

• B

• C

• D

• E

• A

• B

• C

• D

• E