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AT Quiz 1 - B2

1. The document contains 10 multiple choice questions about assurance engagements, audits, and related concepts. The questions cover topics such as reasonable assurance, review engagements, audit objectives, types of audits including compliance and operational audits, and the work performed by auditors. 2. Key aspects addressed include the difference between reasonable and limited assurance, the use of criteria in assurance engagements, the objectives of a financial statement audit versus other types of audits, and the role of internal versus external auditing. 3. Several questions ask the reader to identify which answer choices relate to or characterize certain assurance concepts or audit types.

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75 views2 pages

AT Quiz 1 - B2

1. The document contains 10 multiple choice questions about assurance engagements, audits, and related concepts. The questions cover topics such as reasonable assurance, review engagements, audit objectives, types of audits including compliance and operational audits, and the work performed by auditors. 2. Key aspects addressed include the difference between reasonable and limited assurance, the use of criteria in assurance engagements, the objectives of a financial statement audit versus other types of audits, and the role of internal versus external auditing. 3. Several questions ask the reader to identify which answer choices relate to or characterize certain assurance concepts or audit types.

Uploaded by

AM
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1. The following are the example of reasonable assurance, except?

a. Information is factual and conforms with reality


b. Complies with accounting standards and any relevant legislation
c. Data is correctly transferred from accounting records to the FS
d. Reflects plainly the commercial substance of the transactions
2. Which of the following statements relate to review engagements?
1. Subject matter is plausible
2. Reasonable assurance
3. Nothing has come to our attention which would indicate that the subject matter contains
material misstatements
4. Positive assurance

a. 1 and 3
b. 2 and 4
c. 2 and 3
d. 1 and 4
3. _________ is where there is sufficient evidence that the subject matter agrees to certain
criteria.
a. Reasonable Assurance
b. Limited Assurance
c. Audit
d. Low Level Assurance
4. Statement 1. An Audit Report gives Positive Assurance
Statement 2.A Review Engagement gives Negative Assurance
a. Statement 1 is false
b. Both statements are false
c. Both statements are true
d. Statement 2 is false
5. The following are not the elements of assurance engagement, except?
a. Internal auditing
b Income Tax auditing
c. Government auditing
d. Criteria
6. Most of the independent auditor’s work in formulating an opinion on the financial statements
consists of
a. Obtaining and examining evidence
b. Examining cash transactions
c. Comparing recorded accountability with assets
d. Studying and evaluating internal control
7. An audit of financial statements is conducted to determine if the
a. Organization is operating efficiently and effectively
b. Client is following specific procedures or rules set down by some higher authority
c. Overall financial statements are stated in accordance with the applicable financial reporting
framework.
d. Client’s internal control is functioning as intended
8. Which of the following types of audit uses laws and regulations as its criteria?
a. Operational audit
b. Financial Statement Audit
c. Compliance Audit
d. Performance Audit
9. One objective of an operational Audit is to:
a. Determine whether the financial statements fairly present the entity’s operations.
b. Evaluate the feasibility of attaining the entity’s operational objectives.
c. Make recommendations for improving performance.
d. Report on the entity’s relative success in attaining profit maximization
10. Which of the following types of auditing is performed most commonly by CPA’s on a
contractual basis?
a. Internal auditing
b. Income Tax auditing
c. Government auditing
d. External Auditing

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