The following conclusions have been reported on two engagements: 'The insurance claim presents a true and fair estimate of the amount of inventory lost in the warehouse fire' 'The cash flow forecast contains no assumptions that appear unreasonable'. Which of the following describes the level of assurance expressed in these conclusions?

(1) Positive assurance; (2) Negative assurance

(1) negative assurance; (2) No assurance

(1) Positive assurance; (2) No assurance

(1) negative assurance; (2) Negative assurance

Which of the following is the correct definition of an audit?

The independent examination of and expression of opinion on the financial statements of an entity by a duly appointed auditor in pursuit of that appointment

The process by which the director can state that the FS show a true and fair view.

The examination and certification of opinion on the FS of an entity by a duly appointed auditor in pursuit of that appointment

The process that produces a report stating that nothing has been found wrong in the financial statements.

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?

Limited level of assurance expressed negatively

Positive assurance expressed negatively

Negative assurance expressed positively

High level of assurance expressed negatively

Which of the following best describes professional skepticism?

To apply a questioning mind to information and evidence

To not believe anything that management asserts, without obtaining supporting evidence

To be prudent and always assume the worst outcome in the case of uncertainty

What is the objective of an audit of financial statements of a company?Obgrative of an audit of FS assurance about credibility

To provide assurance on credibility of the financial statements

To protect the interests of minority shareholders

To detect fraud and other irregularities

To assess the effectiveness of the company's performance

Which of the following could cause ADVOCACY?

Firm to represent Stark in a dispute with the tax authorities

Audit team to be offered a balloon flight entertainment

Tax fee to be based on a percentage of tax saved

You are an audit manager of Ali & Co and have just been assigned the audit of Stark Co (Stark). In an initial meeting with the finance director of Stark, you learn that the audit team will not be entertained on Stark's yacht this year, instead, he has arranged a balloon flight costing less than one-tenth of the expense of using the yacht and hopes this will be acceptable. Which of the following actions should be taken to ensure the firm complies with ACCA’s Code of Ethics and Conduct?

The gift should only be accepted if its value is trivial and inconsequential to the recipients.

The gift may be accepted as Stark has taken appropriate measures to reduce the value of the gift compared to previous years.

The value of the gift should be assessed to determine whether it is of material value to the financial statements.

Only the audit partner and audit manager should accept the gift.

The audit team being offered a 10% discount on mobile phones of the client. Which of the following statements is true in accordance with ACCA's Code of Ethics and Conduct?

Unless the value of the discount is trivial and inconsequential to the audit team members, the offer should be declined

The audit team can accept the discount as it is on the same terms as that offered to staff

Junior members of the audit team are allowed to accept the discount, but the audit manager and audit partner should not

The audit team is only allowed to accept a discount of up to 5%

Which of the following principles of ACCA’s code of ethics does this statement mention? “Auditors should not allow bias, conflicts of interest or undue influence of others to override professional or business judgements”

Professional competence and due care

Which of the following statement explains for “self-interest” threat?

The auditor’s own personal interest in client which could influence the auditor’s independence

Auditors review work that their own firm has undertaken previously during the audit, e.g. preparing accounts or making a valuation

If the auditors get involved in disputes concerning the client, they may end up acting for or against the client, which undermines the appearance of objectivity

The auditors may be intimidated by a dominant or aggressive atmosphere at the client

In which of the following situations would the auditor has duty to disclose confidential information about a client?

The auditors suspect that the client has committed money-laundering offences

Disclosure is not required by law

Disclosure is necessary for the public interest

When gaining an understanding of the specific business operations of an audit client which of the following matters would an auditor need to consider?

Products or services and markets of the client's business

Accounting principles and industry specific practices relevant to the client's business

Acquisitions or disposals of the client's business activities

Leasing of property, plant or equipment for use in the client's business

What are the two elements of the risk of material misstatement at the assertion level?

Inherent risk and detection risk

Detection risk and control risk

Who is responsible for the prevention and detection of fraud?

Those charged with governance and management

Which of the following would normally be included in the audit plan?

Nature, timing, and the extent of planned risk assessment procedures

Industry-specific financial reporting requirements

audit and assurance

Authored by ly hinh

Mathematics

7th Grade

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MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is the most appropriate definition of the external audit?

The external audit is an exercise carried out by auditors in order to give an opinion on whether the financial statements of a company are materially misstated.

The external audit is an exercise carried out in order to give an opinion on the effectiveness of a company's internal control system.

The external audit is performed by management to identify areas of deficiency within a company and to make recommendations to mitigate those deficiencies.

The external audit provides negative assurance on the truth and fairness of a company's financial statements.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Is the following statement regarding stewardship true or false? Directors are stewards of the investment made by shareholders in a company.

True

False

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which two of the following are elements of an assurance engagement?
(1) A three-party relationship
(2) Suitable criteria
(3) Determination of materiality
(4) An engagement letter

A (1) and (2) only

B (1) and (3) only

C (2) and (3) only

D (1) and (4) only

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Who normally appoints the external auditors of a company?

Directors

Shareholders

Audit committee

Senior management

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The level of assurance provided by an external audit is absolute. Is this statement true or false?

True

False

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Limited assurance engagements give what sort of assurance?

Moderate

Low

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is NOT the element of assurance service?

Sufficient appropriate audit evidence

Suitable criteria

A written report in the appropriate form

A three party relationship consisting of the responsible party, users, and subject matter

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audit and assurance

Which of the following is the most appropriate definition of the external audit?

Is the following statement regarding stewardship true or false? Directors are stewards of the investment made by shareholders in a company.

Which two of the following are elements of an assurance engagement?
(1) A three-party relationship
(2) Suitable criteria
(3) Determination of materiality
(4) An engagement letter

Who normally appoints the external auditors of a company?

The level of assurance provided by an external audit is absolute. Is this statement true or false?

Limited assurance engagements give what sort of assurance?

Which of the following is NOT the element of assurance service?

Which of the following is NOT a level of assurance provided by an assurance engagement?

Is the following statement true or false? 'Assurance engagements can relate only to financial measures and results.'

Access all questions and much more by creating a free account

Similar Resources on Wayground

Popular Resources on Wayground

Discover more resources for Mathematics

audit and assurance

Which of the following is the most appropriate definition of the external audit?

Is the following statement regarding stewardship true or false? Directors are stewards of the investment made by shareholders in a company.

Which two of the following are elements of an assurance engagement?(1) A three-party relationship(2) Suitable criteria(3) Determination of materiality(4) An engagement letter

Who normally appoints the external auditors of a company?

The level of assurance provided by an external audit is absolute. Is this statement true or false?

Limited assurance engagements give what sort of assurance?

Which of the following is NOT the element of assurance service?

Which of the following is NOT a level of assurance provided by an assurance engagement?

Is the following statement true or false? 'Assurance engagements can relate only to financial measures and results.'

Access all questions and much more by creating a free account

Similar Resources on Wayground

Popular Resources on Wayground

Discover more resources for Mathematics

Which two of the following are elements of an assurance engagement?
(1) A three-party relationship
(2) Suitable criteria
(3) Determination of materiality
(4) An engagement letter