Exam 1: The Demand for Audit and Other Assurance Services

A review of any part of an organization's procedures and methods for the purpose of evaluating efficiency and effectiveness is classified as a(n)

In auditing accounting data, the concern is with

In the audit of an individual's tax return, the criteria used would be

The No-Name Agency conducts an independent service for a company to determine if its suppliers have complied with health and safety regulations, child labour guidelines, and other employee welfare issues. What type of service is No-Name providing?

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?

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

The Sarbanes-Oxley Act requires the auditor to attest to the

What is the primary difference between internal and external auditors?

Which of the following is an example of auditing rather than accounting?

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

What type of information is available from www.sedar.com (System for Electronic Document Analysis and Retrieval)?

Mega Manufacturing Company (Mega) is thinking about acquiring Localized Small Producer Inc. (LSP), a small manufacturing company that produces related products. Mega has examined the financial statements of LSP, which show only a small profit in the last five years. Management of LSP has taken reasonable salaries, and cost of goods sold is higher than the industry average for LSP. Mega believes that it will be able to introduce operational efficiencies at LSP, improving the profitability of the small company, if acquired. Required: A) What type of engagement should be conducted to assess the operational efficiencies of LSP? Justify your response. B) Who should be engaged to conduct the engagement? C) What major problems might the auditors encounter when conducting the audit and writing the report?

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

Joe is recording sales transactions in the accounting system so that they can be summarized in a logical manner for the purpose of providing financial information for decision-making. Joe is performing

It is important for the auditor to be independent because

Auditors General are responsible for auditing which types of organizations?

Auditing should be done by a qualified

Who is responsible for developing financial statement audit and assurance standards in Canada?

What is the most appropriate method for an organization to lower information risk related to its financial statements?

The independent auditor's report is the