Tag: Ethics

The following options are types of tests that might be carried out by an assurance provider.

For the example given, select the financial statement assertion that is being tested.

• Tracing non-current assets which have been observed in use back to the non-current asset register

Select ONE answer:

1. Existence
2. Classification
3. Completeness
4. Tests of controls only

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 – Tracing non-current assets back to the non-current asset register ensures that this balance is recorded accurately.
4. Not correct

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The following options are types of tests that might be carried out by an assurance provider.

For the example given, select the financial statement assertion that is being tested.

– Review of the financial statements using a Companies Act checklist

Select ONE answer:

1. Existence
2. Classification
3. Completeness
4. Tests of controls only

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 –  The Companies Act checklist ensures that all classification issues are addressed.
3. Not correct
4. Not correct

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

For each of the following situations, select the most appropriate approach which should be used by the assurance firm in the given circumstances.

-The audit of a client where controls have been assessed as strong

Select ONE answer:

1. A mix of tests of controls and substantive procedures
2. Some light analytical review
3. Substantive procedures only
4. Tests of controls only

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 – is correct, as where controls have been assessed as strong, this means that they can be relied upon. In this way, tests of controls are carried out coupled with limited substantive procedures.
2. Not correct
3. Not correct
4. Not correct

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

For each of the following situations, select the most appropriate approach which should be used by the assurance firm in the given circumstances.

– The audit of a client where controls have been assessed as deficient

Select ONE answer:

1. Tests of controls only
2. A mix of tests of controls and substantive procedures
3. Some light analytical review
4. Substantive procedures only

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 – is correct, as where the controls have been assessed as deficient, this means that reliance can not be put on these controls.

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

The level of assurance provided by an assurance engagement depends on the type of engagement.

For the following example, select the level of assurance you would expect to be given.

-Report on review of interim financial information

Select ONE answer:

1. Reasonable
2. Absolute
3. Limited
4. Unlimited

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 review engagements provide limited assurance. No engagement provides absolute assurance.
4. Not correct

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