13. An engagement is classified as a limited assurance engagement if:A. The objective is a reduction in assurance engagement risk to anacceptably low level as the basis for a positive form of expression of thepractitioner's conclusion.B. The objective is a reduction in assurance engagement risk to a level thatis acceptable in the circumstances of the engagement, but where thatrisk is greater than for a reasonable assurance engagement, as the basisfor a negative form of expression of the practitioner's conclusion.C. The evaluation or measurement of the subject matter is performed bythe responsible party, and the subject matter information is in the formof assertion by the responsible party that is made available to theintended users.D. The practitioner either directly performs the evaluation or measurementof the subject matter, or obtains a representation from the responsibleparty that has performed the evaluation or measurement that is notavailable to the intended users. The subject matter information isprovided to the intended users in the assurance repot.

Step 1 The Scope of Assurance Engagement is based on what type of assurance services is to be given,…

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an engagement is classified as a limited assurance engage ic a roduuction in assurance engagement risk to

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter17: Other Services Provided By Audit Firms

Section: Chapter Questions

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Question

13. An engagement is classified as a limited assurance engagement if:
A. The objective is a reduction in assurance engagement risk to an
acceptably low level as the basis for a positive form of expression of the
practitioner's conclusion.
B. The objective is a reduction in assurance engagement risk to a level that
is acceptable in the circumstances of the engagement, but where that
risk is greater than for a reasonable assurance engagement, as the basis
for a negative form of expression of the practitioner's conclusion.
C. The evaluation or measurement of the subject matter is performed by
the responsible party, and the subject matter information is in the form
of assertion by the responsible party that is made available to the
intended users.
D. The practitioner either directly performs the evaluation or measurement
of the subject matter, or obtains a representation from the responsible
party that has performed the evaluation or measurement that is not
available to the intended users. The subject matter information is
provided to the intended users in the assurance repot.

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