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ACCEPTING AN ENGAGEMENT

Total questions: 6

Worksheet time: 2mins

Name
Class
Date
1.

There are three financial statement assertions, namely: Assertions about classes of transactions, Assertions about account balances and Assertions about presentation and disclosure.

a)

True

b)

False

2.

This audit procedure consists of the response to an inquiry to corroborate information contained in the accounting records.

a)

Analytical Procedure

b)

Confirmation

c)

Observation

d)

Computation

3.

This audit process is to make a decision of whether to accept or reject an audit engagement.

a)

Accepting an Engagement

b)

Issuing a report

c)

Performing Substantive test

d)

Completing the audit

4.

One of the primary considerations before accepting an audit engagement is to determine whether the auditor has the necessary skills and __________ to handle the engagement.

a)

Independence

b)

Integrity

c)

Ability

d)

Competence

5.

It refers to the information obtained by the auditor in arriving at the conclusions on which the audit opinion is based.

a)

Audit planning

b)

Audit opinion

c)

Audit evidence

6.

This term can also be used for the new auditor

a)

Successor

b)

Predecessor