Exam (elaborations)
ACA Assurance with 100% correct answers
- Course
- Institution
ACA Assurance with 100% correct answers
[Show more]
Content preview
ACA AssuranceStatutory audit - correct answer ✔✔A legally required review of the accuracy of a company's or
government's financial statements and records
Financial statement assertions - correct answer ✔✔Claims of accuracy and valuation, existence,
completeness, rights and obligations, and presentation and disclosure made implicitly in the financial
statements by the preparer
Remittance (?) - correct answer ✔✔Any transfer of payment which completes a business transaction
Company memorandum (?) - correct answer ✔✔A legal statement signed by all initial shareholders or
guarantors agreeing to form the company
Tolerable error - correct answer ✔✔The maximum error in the population that the auditor would be
willing to accept and still conclude that the result from the sample has achieved the audit objective.
Reconciliation vs verification - correct answer ✔✔Verification is before, reconciliation is after?
Sampling risk - correct answer ✔✔The risk that the auditor's conclusions based on a sample may be
different from the conclusion if the entire population were the subject of the same audit procedure.
Lodgement - correct answer ✔✔Cheques deposited but not yet credited
Management representation letter - correct answer ✔✔A form letter written by a company's external
auditors, which is signed by senior company management (EXAMPLES)
Casts - correct answer ✔✔Totals
, Lower of cost - correct answer ✔✔Valuing inventory at whichever is lowest of its historical cost and
current market value
Net realisable value - correct answer ✔✔Expected selling price - total cost of selling
Board of directors - correct answer ✔✔A group of individuals elected by a public company's
shareholders to provide the expert and experienced guidance and oversight to ensure a company's
profitability and sustainability
Analytical procedure - correct answer ✔✔Evaluations of financial information through analysis of
plausible relationships among both financial and non-financial data
Role of internal audit - correct answer ✔✔To provide independent assurance that an organisation's risk
management, governance and internal control processes are operating effectively (EXAMPLES)
Fee dependency limits - correct answer ✔✔10% for listed companies and 15% for non-listed companies
Payroll summary - correct answer ✔✔The total wages, taxes, deductions, entitlements and employer
expenses for each selected employee
Current ratio - correct answer ✔✔The ratio of *current* assets to *current* liabilities where current
means short term (< 1 year)
Audit risk - correct answer ✔✔The risk that the auditor expresses an inappropriate opinion when the
financial statements are materiality misstated. There are 3 types:
- Detection risk
- Control risk
- Inherent risk
Rules on long association between auditor and client for listed company - correct answer ✔✔5 years for
engagement partners (then wait 5)
7 years for key partners (then wait 2) and reviewing partners (then wait 5)
The benefits of buying summaries with Stuvia:
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
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
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 Sakayobako30. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
71947 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now