Assurance services are required by law.

Reasonable assurance is a high level of assurance.

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

Which three of the following describe aspects of the expectation gap with respect to the external audit?

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

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

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

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

The negative assurance conclusion gives a limited level of assurance

Reasonable assurance is absolute assurance of the correctness of the subject matter

Jones LLP is the external auditor of Blue plc, a listed company. Directors of blue plc Have requested that Jones LLP carry out a review engagement assessing the effectiveness of its corporate governance policies against the UK Corporate Governance. Select which part of the engagement description constitutes the subject matter, suitable criteria and which party is the responsible party

An individual or firm is eligible for appointment as the statutory auditor if the individual or firm is a member of a recognised supervisory body and is eligible for appointment under the rules of that body

A person may not act as a statutory auditor of a company if that person is an officer or employee of the company

Which one of the following best describes the concept of assurance

Which three of the following are the benefits of assurance report and financial information

Which party prepares the subject matter

Which party gathers evidence on the subject matter

‘ 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

In the context of a statutory audit which three of the following are commonly cited examples of misunderstandings that contribute to the expectation gap

Level of assurance for statutory audit

Level of assurance for review of financial information

Level of assurance for report on profit and cash flow forecast

Small ltd has an annual turnover of £10 million, total assets of £5.1 million and 101 employees. Is Small LTD required to have an audit in the UK

Tiny LTD has an annual turnover of £15 million, total assets of £5.2 million and 99 employees

Little LTD has an annual turnover of £5 million, total assets of £4.9 million and 45 employees

Which three of the following constitutes possible subject matter which may be evaluated for the purpose of an assurance engagement

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

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

Which three of the following statements form form part of the generally accepted definition of fair in the context of ‘a true and fair view’

‘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 the statement

Assurance is an independent and professional activity that users value

The principal objective of assurance is to detect and correct fraud

Assurance assignments may take many forms

Ways to close the expectation gap: by issuing an engagement letter setting out the work to be carried out and its limitation

Ways to close the expectations gap: by reducing the audit fee

Ways to close the expectation gap: by including a caveat in the assurance report

Which two of the following statements best describes the statutory audit

Sampling is part of the audit process

The provision of assurance in itself can be a subjective process

The auditors maybe auditing that particular client for the first time

Ilford plc is a large audit client of Smith LLP. Ilford plc has approach Smith LLP to request that they carry out a review of the inventory system in operation at the Brent branch and the extent to which it operates in line with company policy. Select which is the subject matter, the suitable criteria and the responsible party.

'in our opinion, the financial statements give a true and fair view of the state of the companies affairs at 31 March 20X7, and of its profit for the year then ended'. Which of the following describes the type of insurance provided by the statement