Exam 1: The Demand for Audit and Other Assurance Services

What is the nature of the service provided when an auditor evaluates information using suitable criteria and issues a report that attests to the reliability of the information?

To operate effectively,an internal auditor must be independent of the

The underlying conditions that create demand by users for reliable financial information include the fact that

An example of a forensic accounting assignment might be

Auditing should be done by a qualified

How does a financial statement audit affect a bank manager's decisions in providing loans to a corporate client?

The auditor and the entities being audited should agree on the criteria to be used in the audit

When do individuals and organizations typically need assurance services?

George had a conversation with the accounting personnel and documented information about how the accounting systems function.He has also placed copies of accounting forms in his files.George is performing which task?

Which of the following is an example of an attestation engagement?

A typical objective of an operational audit is for the auditor to

As an external auditor is paid a fee by a client company,he or she

The risk that financial statements may be materially false and misleading is called

A shareholder of a public Canadian firm can have access to the audited financial statements

What impact is the presence of factors such as real-time information (such as via the Internet)expected to have upon the demand for assurance services?

Which of the following is an example of a financial statement audit?

It is important for the auditor to be independent because

As a PA,you have been asked to prepare your sister Betty's year-end financial statements.Betty is a photographer and is the sole shareholder of a small company called Best Weddings Ltd.She photographs weddings,graduations,and schools,and earns about $75 000 per year.Betty has said that she only needs the financial statements for her tax returns and would like you to prepare the tax returns too. Required:A)Would you be able to prepare the financial statements for your sister? Why or why not? B)If yes,what type of report would you prepare to accompany the financial statements? C)Would you be able to prepare the tax returns for your sister? Why or why not?

What is the primary difference between internal and external auditors?

Jordan set up a not-for-profit corporation several years ago to provide scholarships to disadvantaged youth in his community.Scholarships Get Up and Go Foundation now has assets of over $5 million and provides about ten university scholarships every year.Jordan is proud of the new doctors,dentists,and other healthcare practitioners that his foundation has funded. Jordan is thinking of starting another foundation in an old building that he has purchased.It would be a youth drop-in centre offering music lessons,art facilities,and gym facilities,and would have links to local high schools to offer homework clubs to encourage good grades. Required:A)Why should Jordan have the financial statements of both of these foundations audited? B)Who would be the users of the financial statements of the foundations? C)What other types of services could PAs provide to Jordan and the foundations?