Chapter 1- Fundamental Principles of Assur 14. Which of the following is most likely a form of conclusion for a reasonable assurance engagement? A. "In our opinion, internal control is effective, in all material respects. based on XYZ criteria." B. "Based on our work described in this report, nothing has come to our attention that causes us to believe that internal control is not effective, in all material respects, based on XYZ criteria." C. Both A and B. D. Neither A nor B.

Chapter 1- Fundamental Principles of Assur 14. Which of the following is most likely a form of conclusion for a reasonable assurance engagement? A. "In our opinion, internal control is effective, in all material respects. based on XYZ criteria." B. "Based on our work described in this report, nothing has come to our attention that causes us to believe that internal control is not effective, in all material respects, based on XYZ criteria." C. Both A and B. D. Neither A nor B.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

5 ___________ is a tool for planning, directing, and controlling the audit work. a. Engagement letter b. Audit programme c. Audit report d. Audit evidence
29. This term means an engagement in which a practitioner expresses a conclusion designed to enhance the degree of confidence of the intended users other than the responsible party about the outcome of the evaluation or measurement of a subject matter against criteria. Group of answer choices Assurance Internal Audit None of the choices Operations Audit Consultancy
Q3. Auditing involves the following except___ a. Systematic process b. Objectively obtaining evidence c. Assertions and established criteria d. Investment decisions
9 Which of the following audit does an independent person usually carry out? a. Internal audit b. None of the options c. External Audit d. Bothe internal and external audit Clear my choice
Determine whether statement 1 and 2 are true or false 5. S1 -Objectives are the overall plans for the entity, while strategies are the operational approaches by which managements intends to achieve its objectives S2- Not all controls are relevant to the auditor’s risk assessment a. False, False b. True, False c. False, True d. True, True
1. The levels of assurance are (a) Reasonable, (b) negative, and (c) agreed-upon procedure.Select one:TrueFalse
Identify how each of the following statements relates to the performance principle by considering which element(s) of the principle are related to that statement. (A statement may be related to more than one element.) Use the following elements in providing your response: Reasonable assurance • Planning and supervision • Materiality ⚫ Risk assessment • Audit evidence a. Evaluating the effectiveness of the client's internal control in preventing or detecting misstatements. b. Obtaining an understanding of the client's business and industry. c. Acknowledging that the risk of failing to detect a material misstatement cannot be reduced to zero. d. Obtaining confirmations from the client's customers as to the ending balances in accounts receivable. e. Preparing a written audit plan. f. Designing audit procedures to identify misstatements that would have a significant effect on financial statement users' decisions. g. Considering the likelihood that the account balance contains a material…
For a compliance engagement, three conditions must be met. Which of the following is notone of the three conditions?a. Management accepts responsibility for compliance.b. Management’s evaluation of compliance is capable of evaluation and is measured againstreasonable criteria.c. Sufficient evidence is available to support management’s evaluation.d. Management provides a report attesting to satisfactory compliance
Question 8 Rule 201, General Standards, requires a member to comply with standards and interpretations. Which of the following is NOT a standard covered by Rule 201. Sufficient relevant data Due Professional Care Independence Planning & Supervision. 9 ) Which of the following situations would most likely be in conflict with the responsibilities principle? Auditors document their assessment of control risk following their study of internal control. Auditors perform the engagement with the performance level expected of competent auditors. Auditors obtain expertise in their client's industry as they are conducting the audit examination. Auditors are directly involved with a client manager in a strategic decision-making capacity.
4. Many organizations implement assurance layering strategies to mitigate the risks they face to acceptable levels. One such strategy is the Three Lines of Defense model. a. Describe the first and second lines of defense included in this model. b. Explain what distinguishes the third line of defense from the first two. c. Discuss how the three lines of defense are coordinated. d. Identify the external sources of assurance that organizations use to augment their internal lines of defense.
14. When performing an attestation examination engagement, the standards do not require which of the following? Group of answer choices Assertion. Practitioner independence. Subject matter. Suitable criteria.
Which of the following is NOT an element of an assurance engagement? A. Audit assertion B. Responsible party C. Suitable criteria D. Independent auditor