100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Test Bank for Auditing: A Practical Approach, 4th Canadian Edition by Robyn Moroney CA$42.35   Add to cart
Quickly navigate to
Preview
  2.  
  3. Auditing
  4.  
  5. Auditing
  6.  
  7. Auditing

Exam (elaborations)

Test Bank for Auditing: A Practical Approach, 4th Canadian Edition by Robyn Moroney

1 review
 33 views  1 purchase

Test Bank for Auditing: A Practical Approach, 4th Canadian Edition 4ce by Robyn Moroney, Fiona Campbell, Jane Hamilton, Valerie Warren. ISBN-13: 9480 Full Chapters test bank included 1 Introduction and Overview of Audit and Assurance 1-1 1.1 Auditing and Assurance Defined 1-4 1.2 Demand...

[Show more]

Preview 1 out of 514  pages

Document information

  • July 19, 2023
  • 514
  • 2022/2023
  • Exam (elaborations)
  • Questions & answers

Subjects

Written for

All documents for this subject (141)

1  review

review-writer-avatar

By: bekindtooneanother • 1 month ago

Seller

avatar-seller
StepsSol

Reviews received

Content preview

CHAPTER 1
INTRODUCTION AND OVERVIEW OF AUDIT AND
ASSURANCE
CHAPTER LEARNING OBJECTIVES

1. Define an assurance engagement.
An assurance engagement involves an assurance provider arriving at an opinion about
some information being provided by their client to a third party. A financial statement audit is
one type of assurance engagement. This engagement involves an auditor arriving at an
opinion about the fair presentation of the financial statements. The audit report is addressed
to the shareholders of the company being audited, but other users may read the financial
statements. Learning about auditing and assurance requires an understanding of auditing
and assurance terminology, including terms such as audit risk, materiality, internal controls,
listed entity, and assertions.


2. Explain why there is a demand for audit and assurance services.
Financial statement users include investors (shareholders), suppliers, customers, lenders,
employees, governments, and the general public. These groups of users demand audited
financial statements because of their remoteness from the entity, accounting complexity,
their incentives competing with those of the entity’s managers, and their need for reliable
information on which to base decisions. The theories used to describe the demand for audit
and assurance services are agency theory, the information hypothesis, and the insurance
hypothesis.


3. Differentiate between types of assurance services.
Assurance services include financial statement audits, compliance audits, performance
audits, comprehensive audits, internal audits, and assurance on corporate social
responsibility (CSR) disclosures.


4. Explain the different levels of assurance.
The different levels of assurance include reasonable assurance, which is the highest level of
assurance, limited assurance, and no assurance. Reasonable assurance is provided on an
audit of a company’s financial statements. Limited assurance is provided in a review of a
company’s financial statements. No assurance is provided in a compilation engagement.


5. Outline different audit opinions
An auditor can issue an unmodified opinion, also known as a clean report, or an unmodified
opinion with an emphasis of matter paragraph. Alternatively, a modified opinion may be
issued as a qualified, an adverse, or a disclaimer of opinion.


6. Differentiate between the roles of the preparer and the auditor, and discuss the
different firms that provide assurance services.
It is the responsibility of a company’s governing body to ensure that its financial statements
are relevant, reliable, comparable, understandable, and true and fair. It is the responsibility
of the auditor to form an opinion on the fair presentation of the financial statements. In doing,

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller StepsSol. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for CA$42.35. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

80364 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
CA$42.35  1x  sold
  • (1)
  Add to cart