Exam 1: The Demand for Audit and Other Assurance Services

Use your knowledge of the definition of auditing and Figure 1-1: Audit of a Tax Return to explain how an auditor would conduct a privacy audit.

Herbert Zora is having financial statements prepared by his PA to accompany his tax return. His primary concern is cost. Of the following, the lowest-cost engagement that the PA can perform for Zora's financial statements is

Which of the following illustrates the definition of auditing with respect to the reporting process?

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

Frederic is an account manager at a large Canadian bank. Frederic has to decide if the bank will make a loan to Frost Corp, a snow removal company. Further, Frederic has to decide how much they will lend to Frost and at what rate. Assuming that Frederic makes the loan, what factors will he use to decide the rate of interest? What factors are impacted by auditing and how?

Discuss the differences and similarities between the roles of accountants and auditors. What additional expertise must an auditor possess beyond that of an accountant?

Trust Services principles and criteria for controls relate to ensuring that

A PA is attempting to sell a service to clients that will provide assurance on the accuracy, availability, and security of information systems.The PA is attempting to sell a(n)

Which of the following audits can be regarded as being solely "compliance" audits?

Which of the following is most difficult to evaluate objectively?

As part of its loan agreement, Big Bank requires that only accounts receivable less than 60 days old be used as collateral. An auditor has been engaged to provide assurance that the accounts receivable on the list provided to the bank are indeed less than 60 days old. What type of engagement is the auditor conducting?

Two types of services provided by public accounting firms are audits and reviews. Discuss the similarities and differences between these two types of services. Which type provides the most assurance?

Which of the following is not a cause of information risk?

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

There is an increasing demand for assurance about computer controls surrounding financial information transacted electronically and the security of the information related to the transaction. This is in large part due to

We discuss four types of auditors: public accountants, government auditors, Canada Revenue Agency auditors, and internal auditors. Briefly describe the work and responsibilities of each type of auditor.

Which of the following illustrates the definition of auditing with respect to the evidence analysis process?

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?

A major type of assurance service performed by large public accounting firms is

The need to implement philosophies and practices commonly referred to as "improved business practices" comes from