WorksheetsAudit and Assurance Quiz
Total questions: 10
Worksheet time: 5mins
“Based on our review, nothing has come to our attention that causes us to believe that the
accompanying financial statements do not present fairly, in all material respects … in accordance
with International Financial Reporting Standards.”
Which 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
Which of the following best describes professional scepticism?
To disbelieve management
To not believe anything that management asserts, without obtaining supporting evidence
To apply a questioning mind to information and evidence
To be prudent and always assume the worst outcome in the case of uncertainty
Who is ultimately responsible for ensuring that the annual financial statements of a listed company are prepared in accordance with IFRS and relevant legislation?
The auditor
The board of directors
The company secretary
The listing exchange
What is the objective of an audit of financial statements of a company?
To protect the interests of minority shareholders
To detect fraud and other irregularities
To assess the effectiveness of the company’s performance
To provide assurance on credibility of the financial statements
Which of the following statements, relating to International Standards on Auditing (ISAs) are correct?1. ISAs are issued by the International Accounting Standards Board (IASB) and provide guidance on the performance and conduct of an audit 2. In the event that ISAs differ from local legislation in a specific country, auditors must comply with the requirements of the ISAs
Only 1
only 2
both
niether
Who approves the appointment of a company’s auditor?
The statutory authorities
The directors
The shareholders
The company’s bank
The International Auditing and Assurance Standards Board (IAASB) is a standard-setting board of which of the following?
Organisation for Economic Co-operation and Development
International Financial Reporting Standards Foundation
International Federation of Accountants
The World Bank
Which of the following is generally accepted as a right of an auditor?
To have access to the company’s books, accounts and records
To require from company officials any information and explanations on any matter whatsoever
To report to any legal authority any matter the auditor considers that authority needs to know
To attend any board or committee meeting
Which of the following statements relating to International Standards on Auditing (ISAs) and professional auditors is true?
All ISAs must be applied during the course of the audit
ISAs override local regulations
ISAs are rules-based and all rules must be applied
In most jurisdictions, only a statutory auditor is allowed to carry out audits of companies
What is the main purpose of providing assurance services?
To guarantee that financial statements are 100% accurate
To enhance the credibility of the information being assessed
To improve the internal control processes of the company
To reduce the overall costs of the business
