Tag: Audit

In any assurance engagement, there are a number of parties involved.

Select which party gathers evidence on the subject matter?

Select ONE answer:

1. Responsible party
2. Practitioner
3. User
4. The public

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 == > It is the responsible party that prepares the subject matter. The practitioner is responsible for gathering evidence. The user is the party who receives the final report.
3. Not correct
4. Not correct

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

In any assurance engagement, there are a number of parties involved.

Select which party prepares the subject matter?

Select ONE answer:

1. Responsible party
2. Practitioner
3. User
4. The public

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 == > It is the responsible party that prepares the subject matter. The practitioner is responsible for gathering evidence. The user is the party who receives the final report.
2. Not correct
3. Not correct
4. Not correct

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

Which ONE of the following is NOT a benefit of an assurance report on financial information?

Select ONE answer:

1. enhances the credibility of the information being reported on
2. reduces the risk of management bias in the information being reported on
3. attests to the correctness of the information being reported on
4. draws the attention of the user to deficiencies in the information being reported on

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 == >    An assurance report does not ‘attests to the correctness of the information being reported upon’. Even a reasonable assurance engagement (which gives more assurance than a limited assurance engagement) does not provide a guarantee that the information being reported on is correct. Assurance can never be absolute as this statement implies.
4. Not correct

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

Which one of the following best describes the concept of assurance?

Assurance refers to….?

Select ONE answer:

1. 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
2. the use of another party a user’s satisfaction as to the reliability of an assertion being made by another party
3. 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
4. an assurance firm’s satisfaction as to the reliability of an assertion being made by one party for

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 == > Assurance refers to an assurance firm’s satisfaction as to the reliability of an assertion being made by one party for the use of another party. This assurance is then expressed in an assurance report with a negative or positive conclusion given as appropriate to that particular engagement.

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

A business consultant called Keith has made the two statements relating to the statutory auditor provisions of the Companies Act 2006.

Statement 1 – An individual or firm is eligible for appointment as 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.

Statement 2 – A person may NOT act as a statutory auditor if that person is an officer or employee of the audit client.

Are the statements true or false?

Select ONE answer:

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

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 == >    As per Companies Act, 2006, a statutory auditor must be a member of a recognised supervisory body and an officer or employee of the client is ineligible as auditor.
4. Not correct

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