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

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 be
subjected to evidence gathering
procedures
by

1 Answer

Answer :

The responsible party and the
intended user of assurance report
should be from different
organizations
by

Related questions

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

Description : 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 ... of financial information. d. The criteria to be used are not available to the intended users

Last Answer : The practitioner's conclusion is to be contained in a written report.

The following statements relate to the three parties involved in an assurance engagement. Which is correct? a. The responsible party and the intended users should always be from different entities. b. A practitioner should not accept an assurance engagement when the subject matter of the engagement requires specialized skills and knowledge beyond those ordinarily possessed by the practitioner. c. A responsible party is the person who is responsible for the subject matter or the subject matter information. d. In all assurance engagements, the responsible party is the engaging party, i.e., the party that engages the practitioner

Description : The following statements relate to the three parties involved in an assurance engagement. Which is correct? a. The responsible party and the intended users should always be from different entities. b. A ... , the responsible party is the engaging party, i.e., the party that engages the practitioner

Last Answer : A responsible party is the person who is responsible for the subject matter or the subject matter information

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

Last Answer : Responsible party

The assurance report is often addressed to the intended users which may be: a. The party responsible for the subject matter. b. Established by agreement between the professional accountant and the responsible party. c. Both A and B d. Neither A nor B

Description : The assurance report is often addressed to the intended users which may be: a. The party responsible for the subject matter. b. Established by agreement between the professional accountant and the responsible party. c. Both A and B d. Neither A nor B

Last Answer : Both A and B

Which of the following statements concerning the intended user of a professional accountant's report is incorrect? a. The responsible party and the intended user may both be within the same organization. b. The intended user should never be established by agreement between the practitioner and the responsible party or those engaging or employing the practitioner. c. In some circumstances, the intended user may be established by law. d. The responsible party may also be one of the intended users

Description : Which of the following statements concerning the intended user of a professional accountant's report is incorrect? a. The responsible party and the intended user may both be within the same organization. b. ... may be established by law. d. The responsible party may also be one of the intended users

Last Answer : The intended user should never be established by agreement between the practitioner and the responsible party or those engaging or employing the practitioner

Which of the following statements concerning the intended user of a professional accountant's report is incorrect? a. The responsible party and the intended user may both be within the same organization. b. The intended user should never be established by agreement between the practitioner and the responsible party or those engaging or employing the practitioner. c. In some circumstances, the intended user may be established by law. d. The responsible party may also be one of the intended users.

Description : Which of the following statements concerning the intended user of a professional accountant's report is incorrect? a. The responsible party and the intended user may both be within the same organization. b. ... be established by law. d. The responsible party may also be one of the intended users.

Last Answer : The intended user should never be established by agreement between the practitioner and the responsible party or those engaging or employing the practitioner

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

Description : 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 ... , adverse publicity, or other events arising in connection with a subject matter reported on

Last Answer : That the practitioner expresses an inappropriate conclusion when the subject matter information is materially misstated.

In some assurance engagements, the evaluation or measurement of the subject matter is performed by the responsible party, and the subject matter information is in the form of an assertion by the responsible party that is made available to intended users. These engagements are called a. Recurring engagements b. Non-assurance engagements c. Direct reporting engagements d. Assertion-based engagements

Description : In some assurance engagements, the evaluation or measurement of the subject matter is performed by the responsible party, and the subject matter information is in the form of an ... Recurring engagements b. Non-assurance engagements c. Direct reporting engagements d. Assertion-based engagements

Last Answer : Assertion-based engagements

In some assurance engagements, the evaluation or measurement of the subject matter is performed by the responsible party, and the subject matter information is in the form of an assertion by the responsible party that is made available to intended users. These engagements are called a. Recurring engagements b. Non-assurance engagements c. Direct reporting engagements d. Assertion-based engagements

Description : In some assurance engagements, the evaluation or measurement of the subject matter is performed by the responsible party, and the subject matter information is in the form of an ... Recurring engagements b. Non-assurance engagements c. Direct reporting engagements d. Assertion-based engagements

Last Answer : Assertion-based engagements

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

Description : 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 ... to whether the subject matter conforms, in all material respects, with the identified suitable criteria

Last Answer : The CPA’s conclusion provides a level of assurance about the subject matter.

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

Description : 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 ... d. The use of judgment in gathering and evaluating evidence and forming conclusions based on that evidence

Last Answer : The practitioner may not have the required assurance knowledge and skills to gather and evaluate evidence.

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

Description : 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

Last Answer : Evidence

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

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

Last Answer : Engagement process

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

Description : 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 ... was conducted. c. Identification of the criteria. d. Reference to the work of an expert

Last Answer : Reference to the work of an expert

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

Description : 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 ... are prepared in accordance with a special purpose framework. d. Use of the report is restricted

Last Answer : Use of the report is restricted

There are fundamental principles that the professional accountant has to observe when performing assurance engagements. The requirement of which principle is of particular importance in an assurance engagement in ensuring that the conclusion of the professional accountant has value to the intended user? a. Integrity b. Confidentiality c. Professional competence d. Objectivity

Description : There are fundamental principles that the professional accountant has to observe when performing assurance engagements. The requirement of which principle is of particular importance in an assurance ... the intended user? a. Integrity b. Confidentiality c. Professional competence d. Objectivity

Last Answer : Objectivity

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

Description : 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

Last Answer : The quantity and type of evidence obtained

.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.

Description : .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.

Last Answer : The quantity and type of evidence obtained.

An attestation engagement is one in which a CPA is engaged to: a. Assemble prospective financial statements based on the assumptions of the entity's management without expressing any Testify as an expert witness in accounting, auditing or tax matters, given certain stipulated facts. b. assurance. c. Issue a written communication expressing a conclusion about the reliability of a written assertion that is the responsibility of another party. d. Provide tax advice or prepare a tax return based on financial information the CPA has not audited or reviewed.

Description : An attestation engagement is one in which a CPA is engaged to: a. Assemble prospective financial statements based on the assumptions of the entity's management without expressing any Testify as an expert ... or prepare a tax return based on financial information the CPA has not audited or reviewed.

Last Answer : Issue a written communication expressing a conclusion about the reliability of a written assertion that is the responsibility of another party

Which of the following statements is true? a. Assurance engagements do not require independence. b. The term “auditor” is broader in scope compared to the term “practitioner.” c. Assurance engagements performed by professional accountants are intended to enhance the credibility of information. d. The degree or level of assurance that may be provided by the practitioner is inversely related to the scope of procedures performed and their results

Description : Which of the following statements is true? a. Assurance engagements do not require independence. b. The term auditor is broader in scope compared to the term practitioner. c. Assurance ... be provided by the practitioner is inversely related to the scope of procedures performed and their results

Last Answer : Assurance engagements performed by professional accountants are intended to enhance the credibility of information.

Which of the following factors would most likely cause a CPA to decide not to accept a new audit engagement? a. The CPA’s lack of understanding of the prospective client’s internal auditor’s computer-assisted audit techniques. b. Management’s disregard of its responsibility to maintain an adequate internal control environment. c. The CPA’s inability to determine whether related-party transactions were consummated on terms equivalent to arm’s-length transactions. d. Management’s refusal to permit the CPA to perform substantive tests before the year-end.

Description : Which of the following factors would most likely cause a CPA to decide not to accept a new audit engagement? a. The CPA's lack of understanding of the prospective client's internal auditor's ... . d. Management's refusal to permit the CPA to perform substantive tests before the year-end.

Last Answer : Management’s disregard of its responsibility to maintain an adequate internal control environment

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

The primary deliverable of an engagement to perform based on procedures prescribed by the intended user of the report is/are: a. The Review Report b. Report of Factual Findings c. Management Letter d. The financial statements

Description : The primary deliverable of an engagement to perform based on procedures prescribed by the intended user of the report is/are: a. The Review Report b. Report of Factual Findings c. Management Letter d. The financial statements

Last Answer : Report of Factual Findings

What type of assurance engagement is involved when the practitioner expresses a negative form of conclusion? a. Negative assurance engagement b. Assertion-based assurance engagement c. Limited assurance engagement d. Reasonable assurance engagement

Description : What type of assurance engagement is involved when the practitioner expresses a negative form of conclusion? a. Negative assurance engagement b. Assertion-based assurance engagement c. Limited assurance engagement d. Reasonable assurance engagement

Last Answer : Limited assurance engagement

What type of assurance engagement is involved when the practitioner expresses a positive form of conclusion? a. Positive assurance engagement b. Limited assurance engagement c. Reasonable assurance engagement d. Absolute assurance engagement

Description : What type of assurance engagement is involved when the practitioner expresses a positive form of conclusion? a. Positive assurance engagement b. Limited assurance engagement c. Reasonable assurance engagement d. Absolute assurance engagement

Last Answer : Reasonable assurance engagement

What type of assurance engagement is involved when the practitioner expresses a negative form of conclusion? a. Negative assurance engagement b. Assertion-based assurance engagement c. Limited assurance engagement d. Reasonable assurance engagement

Description : What type of assurance engagement is involved when the practitioner expresses a negative form of conclusion? a. Negative assurance engagement b. Assertion-based assurance engagement c. Limited assurance engagement d. Reasonable assurance engagement

Last Answer : Limited assurance engagement

What type of assurance engagement is involved when the practitioner expresses a positive form of conclusion? a. Positive assurance engagement b. Limited assurance engagement c. Reasonable assurance engagement d. Absolute assurance engagement

Description : What type of assurance engagement is involved when the practitioner expresses a positive form of conclusion? a. Positive assurance engagement b. Limited assurance engagement c. Reasonable assurance engagement d. Absolute assurance engagement

Last Answer : Reasonable assurance engagement

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

Description : 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 ... create a. Self-interest threat. b. Advocacy threat. c. Intimidation threat. d. Familiarity threat

Last Answer : Advocacy threat.

Assurance engagement include the following, except a. An engagement conducted to provide a high level of assurance that the subject matter conforms in all material respects with identified suitable criteria. b. An engagement conducted to provide a moderate level of assurance that the subject matter is plausible in the circumstances. c. An engagement in accordance with the Philippine Standard on Assurance Engagement(s). d. An engagement to perform agreedupon procedures

Description : Assurance engagement include the following, except a. An engagement conducted to provide a high level of assurance that the subject matter conforms in all material respects with identified suitable ... Philippine Standard on Assurance Engagement(s). d. An engagement to perform agreedupon procedures

Last Answer : An engagement to perform procedures.

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.

Description : 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.

Last Answer : Criteria.

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.

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

Last Answer : Evaluation of a capital investment proposal.

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

Description : 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 ... be signed by both the client and the CPA and should be used only for independent audits

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

Assurance engagements involve: a. Two separate parties: a professional accountant and intended users. b. Two separate parties: a professional accountant and a responsible partyc. Three separate parties: apractitioner, a responsible party andintended users.d. Three separate parties: a professionalaccountant, a responsible party, andintended users

Description : Assurance engagements involve: a. Two separate parties: a professional accountant and intended users. b. Two separate parties: a professional accountant and a responsible party c. Three separate ... . d. Three separate parties: a professional accountant, a responsible party, and intended users

Last Answer : Three separate parties: a practitioner, a responsible party and intended users

Assurance engagements involve: a. Two separate parties: a professional accountant and intended users. b. Two separate parties: a professional accountant and a responsible partyc. Three separate parties: apractitioner, a responsible party andintended users.d. Three separate parties: a professionalaccountant, a responsible party, andintended users

Description : Assurance engagements involve: a. Two separate parties: a professional accountant and intended users. b. Two separate parties: a professional accountant and a responsible party c. Three separate ... . d. Three separate parties: a professional accountant, a responsible party, and intended users

Last Answer : Three separate parties: a practitioner, a responsible party and intended users.

Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding the predecessor's a. Evaluation of all matters of continuing accounting significance. b. Understanding as to the reasons for the change of auditors. c. Awareness of the consistency in the application of GAAP between periods. d. Opinion of any subsequent events occurring since the predecessor's audit report was issued

Description : Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding the predecessor's a. Evaluation of all matters of continuing accounting ... . Opinion of any subsequent events occurring since the predecessor's audit report was issued

Last Answer : Understanding as to the reasons for the change of auditors

When the professional accountant has obtained sufficient appropriate evidence to conclude that the subject matter conforms in all material respects with identified suitable criteria, he or she can provide what level of assurance? a. None b. High c. Absolute d. Moderate

Description : When the professional accountant has obtained sufficient appropriate evidence to conclude that the subject matter conforms in all material respects with identified suitable criteria, he or she can provide what level of assurance? a. None b. High c. Absolute d. Moderate

Last Answer : High

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

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

Last Answer : Appropriate professional fees

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.

Description : 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.

Last Answer : Unreasonably low professional fee

Which of the following is incorrect regarding the Philippine Standards on Assurance Engagements (PSAE)? a. It provides an overall framework for assurance engagements intended to provide either a high or moderate level of assurance. b. When a professional accountant is engaged to perform an assurance engagement for which specific standards exist, those standards apply. c. It provides basic principles and essential procedures for engagements intended to provide a moderate level of assurance. d. If no specific standards exist for an assurance engagement, PSAE apply

Description : Which of the following is incorrect regarding the Philippine Standards on Assurance Engagements (PSAE)? a. It provides an overall framework for assurance engagements intended to provide either a high or ... level of assurance. d. If no specific standards exist for an assurance engagement, PSAE apply

Last Answer : It provides basic principles and essential procedures for engagements intended to provide a moderate level of assurance.

The purpose of an audit of financial statements is to a. Obtain an absolute level of assurance that the financial statements as a whole are free from material misstatement. b. Relieve management or those charged with governance of the responsibility for the preparation and presentation of the financial statements in accordance with the applicable financial reporting framework. c. Enhance the degree of confidence of intended users in the financial statements. d. Assure the future viability of the entity by expressing an opinion on the entity's financial statements.

Description : The purpose of an audit of financial statements is to a. Obtain an absolute level of assurance that the financial statements as a whole are free from material misstatement. b. Relieve management ... the future viability of the entity by expressing an opinion on the entity's financial statements.

Last Answer : Enhance the degree of confidence of intended users in the financial statements.

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..

Description : 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 ... listed entities. d. For all types of audits, regardless of the subject matter of the engagement.

Last Answer : For all audits of financial statements of listed entities

Which of the following is correct concerning requirements about auditor's communications about fraud? a. Fraud that involves senior management should be reported directly to the audit committee regardless of the amounts involved. b. All fraud with a material effect on the financial statements should be reported directly by the auditor to the SEC c. Fraud with a material effect on the financial statements should ordinarily be disclosed by the auditor through the use of an emphasis of a matter paragraph added to the audit report. d. The auditor has no responsibility to disclose fraud outside the entity under any circumstances

Description : Which of the following is correct concerning requirements about auditor's communications about fraud? a. Fraud that involves senior management should be reported directly to the audit committee ... . The auditor has no responsibility to disclose fraud outside the entity under any circumstances

Last Answer : Fraud that involves senior management should be reported directly to the audit committee regardless of the amounts involved

The firm should establish a system of quality control designed to provide it with reasonable assurance regarding: a. Compliance with professional standards b. Compliance with regulatory and legal requirements c. Appropriateness of reports issued by the firm or engagement partners d. All of the above

Description : The firm should establish a system of quality control designed to provide it with reasonable assurance regarding: a. Compliance with professional standards b. Compliance with regulatory and legal requirements c. Appropriateness of reports issued by the firm or engagement partners d. All of the above

Last Answer : All of the above

The Philippine Framework for Assurance Engagements a. Provides a frame of reference for CPAs in public practice when performing audits, reviews, and compilations of historical financial information. b. Contains basic principles, essential procedures, and related guidance for the performance of assurance engagements. c. Establishes standards and provides procedural requirements for the performance of assurance engagements. d. Defines and describes the elements and objectives of an assurance engagement, and identifies engagements to which PSAs, PSREs, and PSAEs apply

Description : The Philippine Framework for Assurance Engagements a. Provides a frame of reference for CPAs in public practice when performing audits, reviews, and compilations of historical financial information. b. ... of an assurance engagement, and identifies engagements to which PSAs, PSREs, and PSAEs apply

Last Answer : Defines and describes the elements and objectives of an assurance engagement, and identifies engagements to which PSAs, PSREs, and PSAEs apply