Audit and Assurance Quiz

Which THREE of the following are on purposes of a letter of engagement?

• Setting out the form of any report to be issued

• Providing constructive suggestions to management concerning improvements in internal control

• Documenting and confirming acceptance of the appoitment

• Narrowing the expectations gap

• Providing evidence on matters where other evidence is not expected to exist

Which one of the following qualifications is required for individuals working on audits in the UK?

• University degree

• Professional qualification

• Membership of a recognised supervisory body

• Employment by a firm controlled by qualified persons

The statement: "Relevant criteria for assurance engagements relating to FSs are likely to be accounting standards" is true or false?

• True

• False

For each of the following statements select whether they are true or false. A statutory audit gives reasonable assurance that the FSs give a true and fair view?

• True

• False

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

• Sufficient appropriate evidence and a negative opinion

• A lower level of evidence and a negative opinion

• A lower level of evidence and a positive opinion

• Sufficient appropriate evidence and a positive opinion

In any assurance engagement there are three parties involved: the responsible party, the practitioner and user. In respect of given subject matter state which party provides an opinion on whether the subject matter complies with the criteria?

• User

• Practitioner

• Responsible party

The statement: "The criteria for all assurance engagements will be the same" is true or false?

• True

• False

The level of assurance given by an assurance engagement will depend on the type of engagement. For statutory audit, select what level of assurance you would expect to be given:

• Absolute

• Reasonable

In any assurance engagement there are three parties involved: the responsible party, the practitioner and user. In respect of given subject matter state which party determines the suitable criteria?

• User

• Practitioner

• Responsible party

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 type of assurance provided by this statement?

• Positive assurance expressed negatively

• Negative assurance expressed positively

• Limited level of assurance expressed negatively

• High level of assurance expressed negatively