Engagement risk is influenced by the risks associated with the following except a. Nature and form of the subject matterb. Nature and form of the criteria applied tothe subject matter.c. Unreasonably low professional fee.d. Nature and extent of the process used tocollect and evaluate evidence.

Engagement risk is influenced by the risks
associated with the following except
a. Nature and form of the subject matter
b. Nature and form of the criteria applied to
the subject matter.
c. Unreasonably low professional fee.
d. Nature and extent of the process used to
collect and evaluate evidence.
by

1 Answer

Answer :

Unreasonably low professional fee
by

Related questions

When performing an assurance service, professional accountants use standards or benchmarks to evaluate or measure the subject matter of an assurance engagement. This is known as: a. PFRS. b. Assertion. c. Criteria. d. Conclusion.

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Assurance engagements should exhibit the following elements except a. A subject matter b. Suitable criteria c. Evidence d. Appropriate professional fees

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Last Answer : Appropriate professional fees

Which of the following is not an element of assurance engagements? a. Subject matter b. Evidence c. Engagement process d. Suitable criteria

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Last Answer : Engagement process

Reducing assurance engagement risk to zero is very rarely attainable or cost beneficial as a result of the following factors, except a. The use of selective testing. b. The fact that much of the evidence available to the practitioner is persuasive rather than conclusive. c. The practitioner may not have the required assurance knowledge and skills to gather and evaluate evidence. d. The use of judgment in gathering and evaluating evidence and forming conclusions based on that evidence

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The practitioner’s report on an assurance engagement should always include the following, except a. A description of the engagement and identification of the subject matter b. Identification of the standards under which the engagements was conducted. c. Identification of the criteria. d. Reference to the work of an expert

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Which of the following statements is true? a. Professional standards prohibit CPAs from performing non-assurance engagements. b. Absolute assurance is attainable owing to the fact that much of the evidence available to the CPA is persuasive rather than conclusive. c. The CPA’s conclusion provides a level of assurance about the subject matter. d. The responsible party expresses a conclusion that provides a level of assurance as to whether the subject matter conforms, in all material respects, with the identified suitable criteria

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A practitioner should accept an assurance engagement only if a. The practitioner's conclusion is to be contained in a written report. b. The subject matter is the responsibility of either the intended users or the practitioner. c. The subject matter is in the form of financial information. d. The criteria to be used are not available to the intended users

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Which of the following statements is true concerning evidence in an assurance engagement? a. The reliability of evidence is influenced not by its nature but by its source. b. Sufficiency is the measure of the quantity of evidence. c. Obtaining more evidence may compensate for its poor quality. d. Appropriateness is the measure of the quality of evidence, that is, its reliability and persuasiveness.

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Which of the following statements is correct? a. Sufficiency refers to the quality of evidence, while appropriateness refers to the quantity of evidence. b. The reliability of evidence is influenced not by its nature but by its source. c. The performance of consulting services for audit clients does not, in and of itself, impair the auditor’s independence. d. A belief that management and those charged with governance are honest and have integrity relieves the auditor of the need to maintain professional scepticism.

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Which of the following is not one of the requirements before accepting an assurance engagement? a. The practitioner should be competent and independent. b. The responsible party and the intended user of assurance report should be from different organizations. c. The practitioner should accept the engagement only if the subject matter is the responsibility of another party d. The practitioner should accept the engagement only if the subject matter is identifiable and in the form that can besubjected to evidence gatheringprocedures

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A review engagement differs in scope as compared to an audit due to a. The subject matter of the audit. b. The quantity and type of evidence obtained. c. Ethical requirements with respect to independence. d. The users of the financial statements

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Assurance engagement risk is the risk a. Of expressing an inappropriate conclusion when the subject matter information is not materially misstated. b. That the practitioner expresses an inappropriate conclusion when the subject matter information is materially misstated. c. Of expressing an inappropriate conclusion when the subject matter information is either materially misstated or not materially misstated. d. Through loss from litigation, adverse publicity, or other events arising in connection with a subject matter reported on

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An engagement quality control review is required to be performed: a. Immediately after the re-assessment of control risk. b. At engagement completion after the report is issued. c. For all audits of financial statements of listed entitiesd. For all types of audits, regardless of the subject matter of the engagement..

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Management’s assertions in the financial statements are relevant to the audit process because: a. They provide evidence that auditors have prepared financial statements in accordance with GAAP b. They embody the audit procedures that will be performed by the audit engagement team. c. They include representations of financial statements in accordance with the applicable reporting criteria d. They relate to regulator’s expectations about audit results

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Management’s assertions in the financial statements are relevant to the audit process because: a. They provide evidence that auditors have prepared financial statements in accordance with GAAP b. They embody the audit procedures that will be performed by the audit engagement team. c. They include representations of financial statements in accordance with the applicable reporting criteria d. They relate to regulator’s expectations about audit results

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The subject matter of an assurance engagement can take the following forms except a. The entity’s internal control. b. Historical or prospective financial statementsc. Evaluation of a capital investment proposal. d. Performance of an entity that could indicate efficiency and effectiveness.

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In performing an assurance engagement, a professional accountant typically a. Provides management consulting advice. b. Supplies litigation support services. c. Assesses control risk at a low level. d. Expresses a conclusion about an assertion

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In an assurance engagement, this refers to the information obtained by the practitioner in arriving at the conclusions on which the conclusion is based. a. Criteria b. Assertions c. Evidence d. Generally accepted auditing standards

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PSA 315 requires: a. Obtaining an understanding of the entity and its environment b. Identifying and assessing the risks of material misstatement c. Discussion among engagement team members about the risk of material misstatement in the financial statements. d. All of the above

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Should the auditor uncover circumstances during the audit that may cause suspicions of management fraud, the auditor must a. Withdraw from engagement. b. Issue an adverse opinion. c. Issue a disclaimer. d. Evaluate their implications and consider the need to modify audit evidence

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When the continuing auditor intends to use information about the entity and its environment obtained in prior periods, the auditor shoulda. Assess control risk as "high" for theassertions affected by the prior-periodinformation.b. Seek permission with the client in usingthe prior period information obtained bythe auditor.c. Determine whether changes haveoccurred that may affect therelevance of such information in thecurrent audit.d. Determine whether to equitably reducethe audit fee due to lower audit effortexpended during the engagement

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Auditors perform analytical procedures in the planning stage of an audit for the purpose of: a. Determining which of the financial statement assertions are the most important for the client's financial statements. b. Determining the nature, timing, and extent of audit procedures for auditing the inventory. c. Deciding the matters to cover in an engagement. d. Identifying unusual conditions that deserve more auditing effort

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The extent of audit planning will vary according to the following: a. Auditor’s experience with the entity. b. The nature and complexity of the audit engagement. c. Size of the entity. d. All of the above

Description : The extent of audit planning will vary according to the following: a. Auditor’s experience with the entity. b. The nature and complexity of the audit engagement. c. Size of the entity. d. All of the above

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Which of the following best describes the purpose of the engagement letter? a. The engagement letter conveys to management the detailed steps to be applied in the audit process. b. The engagement letter relieves the auditor of some responsibility for the exercise of due care. c. By clearly defining the nature of the engagement, the engagement letter helps avoid and resolve misunderstandings between CPA andclient regarding the precise nature of the work to be performed and the type of report to be issued. d. The engagement letter should be signed by both the client and the CPA and should be used only for independent audits

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Last Answer : By clearly defining the nature of the engagement, the engagement letter helps avoid and resolve misunderstandings between CPA and client regarding the precise nature of the work to be performed and the type of report to be issued

Competence as a certified public accountant includes all of the following except a. Consulting others if additional technical information is needed. b. Possessing the ability to supervise and evaluate the quality of staff work. c. Having the technical qualifications to perform an engagement. d. Warranting the infallibility of the work performed

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Which of the following risks is entirely a quality criterion based on professional judgment? a. Inherent risk b. Control risk c. Detection risk d. Audit risk

Description : Which of the following risks is entirely a quality criterion based on professional judgment? a. Inherent risk b. Control risk c. Detection risk d. Audit risk

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Working papers prepared by a CPA in connection with an audit engagement are owned by the CPA, subject to certain limitations. The rationale for this rule is to a. Protect the working papers from, being subpoenaed. b. Provide the CPA with evidence and documentation which may be helpful in the event of a lawsuit. c. Provide the basis for excluding admission of the working papers as evidence because of the privileged communication rule. d. Establish a continuity of relationship with the client whereby indiscriminate replacement of CPAs is discouraged.

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Last Answer : Provide the CPA with evidence and documentation which may be helpful in the event of a lawsuit.

The working papers prepared by a CPA in connection with an audit engagement are owned by the CPA, subject to certain limitations. The rationale for this rule is to a. Protect the working papers from being subpoenaed. b. Provide the basis for excluding admission of the working papers as evidence because of the privileged communication rulec. Provide the CPA with evidence and documentation which may be helpful in the event of a lawsuit. d. Establish a continuity of relationship with the client whereby indiscriminate replacement of CPAs is discouraged.

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Last Answer : Provide the CPA with evidence and documentation which may be helpful in the event of a lawsuit

Which of the following statements would least likely appear in an auditor's engagement letter? a. Our engagement is subject to the risk that material errors, fraud, and defalcations, if they exist, will not be detected. b. During the course of our audit we may observe opportunities for economy in, or improved controls over, your operations. c. After performing our preliminary analytical procedures we will discuss with you the other procedures we consider necessary to complete the engagement. d. Fees for our services are based on our regular per diem rates, plus travel and other out-of-pocket expenses

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Last Answer : After performing our preliminary analytical procedures we will discuss with you the other procedures we consider necessary to complete the engagement.

A primary purpose for establishing a code of ethics within a professional organization is to: a. Demonstrate the acceptance of responsibility Jo the interest of those served by the profession. b. Reduce the likelihood that members of the profession will be sued for substandard work. c. Ensure that all members of the profession posses approximately the same level of competencyd. Require members of the profession toexhibit loyalty in all matters pertaining tothe affairs of the organization

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Last Answer : Demonstrate the acceptance of responsibility Jo the interest of those served by the profession

Professional judgment:a. Is not used in making decisions about materiality and audit risk. b. Is necessary in the evaluation of management's judgments in applying the entity's applicable financial reporting framework. c. Should be exercised in planning and performing an audit of financial statements but need not be documented. d. Can be used as the justification for the decisions made by the auditor that are not supported by the facts and circumstances of the engagement

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Last Answer : Is necessary in the evaluation of management's judgments in applying the entity's applicable financial reporting framework

Which of the following is not a potential effect of an auditor's decision that a lower acceptable audit risk is appropriate? a. More evidence is requiredb. Less evidence is required. c. Special care is required in assigning experienced staff. d. Review of the working papers by personnel who were not assigned to the engagement.

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Last Answer : Less evidence is required.

Which one of the following is not a key attribute that is essential to perform an assurance service? a. Independence b. Accounting skills c. Established criteria or standards d. Subject matter knowledge

Description : Which one of the following is not a key attribute that is essential to perform an assurance service? a. Independence b. Accounting skills c. Established criteria or standards d. Subject matter knowledge

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In assertion-based assurance engagements, the evaluation or measurement of the subject matter against criteria is performed by the a. Intended users b. Responsible party c. Practitioner d. AASC

Description : In assertion-based assurance engagements, the evaluation or measurement of the subject matter against criteria is performed by the a. Intended users b. Responsible party c. Practitioner d. AASC

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A director, an officer or an employee of the assurance client in a position to exert direct and significant influence over the subject matter of the assurance engagement has been a member of the assurance team or partner of the firm. This situation least likely create a. Self-interest threat. b. Advocacy threat. c. Intimidation threat. d. Familiarity threat

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Last Answer : Advocacy threat.

An auditor may accept an engagement to perform specified procedures on the specific subject matter of specified elements, accounts, or items of a financial statement if a. The report does not list the procedures performed. b. The auditor is also the entity's continuing auditor. c. The financial statements are prepared in accordance with a special purpose framework. d. Use of the report is restricted

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The subject matter of an assurance engagement may include I. Historical or prospective financial information II. Internal controls III. Compliance with regulation a. I and II only b. I and III only c. II and III only d. I, II, and II

Description : The subject matter of an assurance engagement may include I. Historical or prospective financial information II. Internal controls III. Compliance with regulation a. I and II only b. I and III only c. II and III only d. I, II, and II

Last Answer : I, II, and II