Tag: Assurance

For a limited assurance engagements, what is the assurance conclusion that is given?

Select ONE answer:

1. Positive
2. Negative
3. Limited
4. Complete

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct == > Reasonable assurance engagements include the statutory audit. The auditor’s report is phrased positively but does not give absolute assurance. With a limited assurance engagement, negative assurance indicates that nothing has come to light which would cast doubt on the subject matter being reviewed.
3. Not correct
4. Not correct

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For a reasonable assurance engagements , what is the assurance conclusion that is given?

Select ONE answer:

1. Positive
2. Negative
3. Limited
4. Complete

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct == > Reasonable assurance engagements include the statutory audit. The auditor’s report is phrased positively but does not give absolute assurance. With a limited assurance engagement, negative assurance indicates that nothing has come to light which would cast doubt on the subject matter being reviewed.
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

A colleague of Alex, an accountant, has made three statements below in respect of suitable criteria used in an assurance engagement for the external audit or statutory audit of a limited company in the UK

Statement 1 – The criteria for all assurance engagements will be the same.

Statement 2 – Suitable criteria can only be identified for assurance engagements relating to financial statements.

Statement 3 – Relevant criteria for assurance engagements relating to financial statements are likely to be accounting standards.

Identify whether the statements made above are true or false?

Select ONE answer:

1. Statement 1. True and Statement 2. False and Statement 3. False
2. Statement 1. False and Statement 2. False and Statement 3. True
3. Statement 1. True and Statement 2. True and Statement 3. False
4. Statement 1. False and Statement 2. True and Statement 3. True

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct == > Criteria used will depend on the type of engagement conducted. Suitable criteria should be available for other engagements e.g., health and safety can be measured against health and safety legislation.
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

Bash and Co LLP is the external auditor of Big Brum plc, a listed company.

The directors of Big Brum plc have requested that Bash and Co LLP carry out a review engagement assessing the effectiveness of its corporate governance policies against the UK Corporate Governance Code.

For the above review engagement, select who is the practitioner?

Select ONE answer:

1. Big Brum plc’s corporate governance policies
2. The UK Corporate Governance Code
3. The directors of Big Brum plc
4. Bash and Co LLP

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct == > The subject mater under examination are the company’s corporate governance policies. These policies are to be assessed against the UK Corporate Governance Code, which is the suitable criteria. The responsible party is Big Brum plc, the party commissioning the report, who has the responsibility to apply the UK Corporate Governance Code. Bash and Co LLP is the practitioner, responsible for gathering the appropriate evidence and issuing an appropriate opinion.

This work is licensed under a Creative Commons Attribution 4.0 International License.

Bash and Co LLP is the external auditor of Big Brum plc, a listed company.

The directors of Big Brum plc have requested that Bash and Co LLP carry out a review engagement assessing the effectiveness of its corporate governance policies against the UK Corporate Governance Code.

For the above review engagement, select who is the responsible party?

Select ONE answer:

1. Big Brum plc’s corporate governance policies
2. The UK Corporate Governance Code
3. The directors of Big Brum plc
4. Bash and Co LLP

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct == >    The subject matter under examination is the company’s corporate governance policies. These policies are to be assessed against the UK Corporate Governance Code, which is the suitable criteria. The responsible party is Big Brum plc, the party commissioning the report, which has the responsibility to apply the UK Corporate Governance Code. Bash and Co LLP is the practitioner responsible for gathering the appropriate evidence and issuing an appropriate opinion.
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.