Fundamentals of Auditing and Assurance Engagements

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Who are the parties involved in an assurance engagement?

Practitioner, Responsible Party, Intended Users

The type of audit conducted to determine whether an entity complies with laws and regulations is:

Compliance audit

What is the main objective of an audit? A. To prepare the client’s financial statements B. To prevent fraud and error C. To express an opinion on the fairness of financial statements D. To detect all misstatements

C

Which of the following best defines auditing? A. Preparation of financial statements by management B. Systematic process of objectively obtaining and evaluating evidence C. Providing accounting services to the client D. Management’s assessment of internal control

B

Which of the following is not a type of audit? A. Compliance audit B. Feasibility audit C. Financial statement audit D. Operational audit

B

Internal auditors are primarily responsible to: A. Management B. The shareholders C. The SEC D. The public

A

Which of the following is not an element of an assurance engagement? A. Three party relationship B. Suitable criteria C. Financial reporting framework D. Sufficient appropriate evidence

C

The output of an assurance engagement is called: A. Management report B. Internal memo C. Assurance report D. Audit plan

C

Who are the parties involved in an assurance engagement? A. Auditor, Government, Public B. Auditor, Regulatory Body, Management C. Practitioner, Responsible Party, Intended Users D. Practitioner, Accountant, Shareholders

C

The type of audit conducted to determine whether an entity complies with laws and regulations is: A. Compliance audit B. Operational audit C. Financial audit D. Environmental audit

A

Which of the following best describes an assurance engagement? A. Provides accounting services to clients B. Provides an independent conclusion to enhance confidence of users C. Provides tax compliance services D. Provides management advice

B