It is considered the evaluation or measurement of the assertions provided by a responsible party wherein an independent practitioner performs procedures to establish the credibility of the assertions in relation to the suitable criteria to which the independent practitioner issues a written report....
1.1 Introduction to Audit and Assurance 100% Correct
It is considered the evaluation or measurement of the assertions provided by a responsible party wherein an independent practitioner performs procedures to establish the credibility of the assertions in relation to the suitable criteria to which the independent practitioner issues a written report.
a. Assurance engagement
b. Audit engagement
c. Assertion based engagement
d. Direct reporting engagement - ANSWER c. Assertion based engagement
Which of the following best describes the objective of an assurance engagement? a. To improve the company's outcomes. b. To compare the company's information and policies to those of other entities. c. To enhance the credibility of information in order to improve the likelihood that the information will meet the needs of an intended user. d. To implement a system that improves the processing of information. - ANSWER c. To
enhance the credibility of information in order to improve the likelihood that the information will meet the needs of an intended user.
Assurance engagements encompass the following types of services, except a. Attestation services b. Audit of historical financial statements c. Review engagements d. Management consulting - ANSWER d. Management consulting
Unlike consulting services, assurance services: a. Make recommendations to management b. Report on how to use information c. Report on quality information d. Are two party contracts - ANSWER c. Report on quality information
When providing consulting services, the CPA acts primarily as a(n): a. Independent accountant b. Technology specialist c. Expert on compliance with industry standards d. Objective advisor on the use of information - ANSWER d. Objective advisor on the use of information
Which of the following is an assurance engagement? a. Preparation of tax return where no conclusion is expressed b. Consulting engagements c. Engagement to perform agreed-upon procedures or compilation d. Engagement to perform review of prospective financial statements - ANSWER d. Engagement to perform review of prospective financial statements
The Philippine Framework for Assurance Engagements identifies two types of assurance engagement a practitioner is permitted to perform: a reasonable assurance engagement and a limited assurance engagement. Which of the following is the objective of a reasonable assurance engagement? a. A reduction in assurance engagement risk to a level that is acceptable in the circumstances of the engagement as a basis for a negative form of expression of the practitioner's conclusion. b. A reduction in assurance engagement risk to a very low level in the circumstances of the engagement as a basis for a disclaimer of the practitioner's conclusion. c. A reduction in assurance engagement risk to an acceptably low level that is acceptable in the circumstances of the engagement as a basis for a positive form of expression of the practitioner's conclusion.
d. A reduction in assurance engagement risk to a level that is acceptable in - ANSWER c. A reduction in assurance engagement risk to an acceptably low level that is acceptable in the circumstances of the engagement as a basis for a positive form of expression of the practitioner's conclusion.
The following are the elements of an assurance engagement, except a. Third party relationship b. Subject matter c. Sufficient appropriate evidence d. Suitable criteria e. Written assurance report - ANSWER a. Third party relationship
When performing an assurance service, professional accountants use standards or benchmarks to evaluate or measure the subject matter of an assurance engagement. This element of an assurance engagement is called: a. Conclusion b. GAAP c. Criteria
d. Assertion - ANSWER c. Criteria
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