Font size
WorksheetsCFAB Assurance
Total questions: 5
Worksheet time: 22mins
Keep working
Which three of the following describe aspects of the expectations gap with respect to the external audit?
Users do not understand the meaning of the audit opinion
Users are not aware of the limitations of the audit process
Users do not appreciate that reasonable assurance is a low level of assurance
Users do not understand what the audit process involves
Keep practicing! You're doing good!
Which two of the following are limitations of the provision of assurance?
Assurance work is carried out by people independent of the entity
Sampling is used in assurance work
Client systems have inherent limitations
Unqualified staff may be used on assurance engagement
In any assurance engagement, there are three parties involved: The responsible party, the practitioner and the user. Which party determines the suitable criteria?
User
Practitioner
Responsible party
In any assurance engagement, there are three parties involved: The responsible party, the practitioner and the user. Which party provides an opinion on whether the subject matter complies with the criteria?
User
Practitioner
Responsible party
A statutory audit gives reasonable assurance that the financial statements 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 negatively worded opinion
Sufficient appropriate evidence and a positively worded opinion
A lower level of evidence and a negatively worded opinion
A lower level of evidence and a positively worded opinion
A negative assurance conclusion gives a limited level of assurance.
True
False
Reasonable assurance is absolute assurance of the correctness of the subject matter.
True
False
What are the correct answers?
(a)
Which three of the following are key elements of a general assurance engagement?
A user
A subject matter
Suitable criteria
An assurance file
You're almost finished!
What are the correct answers?
(a)
Complete a few next questions and you can hit your mark!
Which one of the following best describes the concept of assurance?
Assurance refers to:
an assurance firm's high level of satisfaction as to the reliability of an assertion being made by one party for the use of another party
an assurance firm's satisfaction as to the reliability of an assertion being made by one party for the use of another party
a user's satisfaction as to the reliability of an assertion being made by another party
an assurance firm's limited level of satisfaction as to the reliability of an assertion being made by one party for the use of another party
Which three of the following are benefits of an assurance report on financial information?
An assurance report:
enhances the credibility of the information being reported on
reduces the risk of management bias in the information being reported on
attests to the correctness of the information being reported on
draws the attention of the user to deficiencies in the information being reported on
What are the correct answers?
(a)
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
High level of assurance expressed negatively
Limited level of assurance expressed negatively
In the context of a statutory audit which three of the following are commonly cited examples of misunderstandings that contribute to the expectation gap?
the auditor's report certifies the financial statements as correct
the auditor's principal duty is to detect fraud
the auditor is employed by the directors
the auditor checks all transactions
What are the correct answers?
(a)
What are the correct answers?
(a)
