Question 1

The expectation gap can be reduced by:

Accepted Answer

A) assurance providers reporting accurately the level of assurance being provided. 
B) enhanced reporting to explain what processes have been followed in arriving at an audit or a review opinion. 
C) auditors performing their duties properly. 
D) all of the above. 
A) assurance providers reporting accurately the level of assurance being provided. 
B) enhanced reporting to explain what processes have been followed in arriving at an audit or a review opinion. 
C) auditors performing their duties properly. 
D) all of the above.

Question 2

Which of the following would be an example of a reasonable assurance engagement?

Accepted Answer

A) the reporting of procedures performed by the auditor as agreed by the client. 
B) the audit of annual financial statements. 
C) the review of annual financial statements. 
D) all of the above. 
A) the reporting of procedures performed by the auditor as agreed by the client. 
B) the audit of annual financial statements. 
C) the review of annual financial statements. 
D) all of the above.

Question 3

Insurance hypothesis is a means whereby the investor can guarantee the success of their investment.

Accepted Answer

A) True 
 B)False

Question 4

The most common types of assurance engagements are financial report audits,confirmation audits,performance audits,comprehensive audits and assurance on corporate social responsibility (CSR)disclosures.

Accepted Answer

A) True 
 B)False

Question 5

An assurance engagement is performed by an auditor or consultant to enhance the reliability of the subject matter.

Accepted Answer

A) True 
 B)False

Question 6

A negative expression of opinion is only given when there is a disagreement with management and the auditor.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is in? A government can be considered to be a user of the general purpose financial reports because:

Accepted Answer

A) it can determine whether certain regulations have been complied with. 
B) it is the basis for the calculation of taxes owed to the government. 
C) to assess the entity so that it can provide the entity with grants that will benefit society. 
D) to gain a better understanding of the entities activities. 
A) it can determine whether certain regulations have been complied with. 
B) it is the basis for the calculation of taxes owed to the government. 
C) to assess the entity so that it can provide the entity with grants that will benefit society. 
D) to gain a better understanding of the entities activities.

Question 8

Under CLERP9,which of the following is not relating to specific disclosures in the directors report?

Accepted Answer

A) if the directors are satisfied that auditor independence has not been impacted by the provision of non-audit services,a statement of the directors' reasons for being satisfied. 
B) details of the amount paid or payable to the company's auditor for non-audit services (each non-audit service must be listed separately along with the amount paid or payable for that service). 
C) a statement whether the directors are satisfied that the provision of non-audit services by the auditor impacts the auditor's independence. 
D) disclosure of material transactions between auditor and entity during the period under audit. 
A) if the directors are satisfied that auditor independence has not been impacted by the provision of non-audit services,a statement of the directors' reasons for being satisfied. 
B) details of the amount paid or payable to the company's auditor for non-audit services (each non-audit service must be listed separately along with the amount paid or payable for that service). 
C) a statement whether the directors are satisfied that the provision of non-audit services by the auditor impacts the auditor's independence. 
D) disclosure of material transactions between auditor and entity during the period under audit.

Question 9

International Auditing and Assurance Standards Board (IAASB)is not responsible for the redrafting of International Auditing Standards (ISAs)to Australian Auditing Standards (ASAs).

Accepted Answer

A) True 
 B)False

Question 10

You must complete further study after a bachelor's degree to become a member of the CAANZ,CPA Australia or the IPA.

Accepted Answer

A) True 
 B)False

Question 11

The main assurance service the general public are familiar with are financial report audits.Briefly describe the other services that an auditor can provide.

Accepted Answer

A compliance audit involves gathering ev

Question 12

An audit of a financial report by the contracted auditors will give absolute assurance that the financial reports give a true and fair view of the financial performance of the entity.

Accepted Answer

A) True 
 B)False

Question 13

The wording of a negative expression of opinion generally states that:

Accepted Answer

A) there is something wrong with the subject matter. 
B) there is nothing wrong with the subject matter. 
C) there is something that has come to the auditor's attention that would lead them to believe that the information being assured is not true and fair. 
D) there is nothing that has come to the auditor's attention that would lead them to believe that the information being assured is not true and fair. 
A) there is something wrong with the subject matter. 
B) there is nothing wrong with the subject matter. 
C) there is something that has come to the auditor's attention that would lead them to believe that the information being assured is not true and fair. 
D) there is nothing that has come to the auditor's attention that would lead them to believe that the information being assured is not true and fair.

Question 14

Which of the following is ? The Accounting Professional Ethical Standards Board (APESB):

Accepted Answer

A) issue technical standards to the members of the CAANZ,CPA Australia and IPA. 
B) standards are required to be complied with by members of each of CAANZ,CPA and IPA. 
C) have not approved any standards that are required by law. 
D) follows pronouncements issued by the International Accountants Ethics Standards Board (IAES
B) . 
A) issue technical standards to the members of the CAANZ,CPA Australia and IPA. 
B) standards are required to be complied with by members of each of CAANZ,CPA and IPA. 
C) have not approved any standards that are required by law. 
D) follows pronouncements issued by the International Accountants Ethics Standards Board (IAES
B) .

Question 15

The expectation gap is caused by unrealistic user expectations such as the auditor providing a moderate level of assurance.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is NOT true about Corporate Social Responsibility assurance?

Accepted Answer

A) disclosures include environmental,employee and social reporting. 
B) includes both financial and non-financial information. 
C) reporting is voluntary and is becoming more widespread. 
D) is required to be performed by an auditor. 
A) disclosures include environmental,employee and social reporting. 
B) includes both financial and non-financial information. 
C) reporting is voluntary and is becoming more widespread. 
D) is required to be performed by an auditor.

Question 17

Only current investors (not potential investors)are considered to be users of the financial statements.

Accepted Answer

A) True 
 B)False

Question 18

An auditor can provide a reasonable level of assurance on information other than historical financial information.

Accepted Answer

A) True 
 B)False

Question 19

Auditor rotation in CLERP9 states that an auditor cannot perform a significant role in the audit of a client in more than

Accepted Answer

A) two out of seven years. 
B) six out of seven years. 
C) five out of seven years. 
D) two out of five years. 
A) two out of seven years. 
B) six out of seven years. 
C) five out of seven years. 
D) two out of five years.

Question 20

The following can be said about an emphasis of matter:

Accepted Answer

A) it cannot be used when expressing audit opinion that has pervasive misstatements. 
B) it is only used in unqualified audit opinions. 
C) it is included when the auditors opinion has changed and the auditor wants to bring the users' attention to a particular matter. 
D) it is included when the auditor's opinion has not changed and the auditor wants to bring the users' attention to a particular matter. 
A) it cannot be used when expressing audit opinion that has pervasive misstatements. 
B) it is only used in unqualified audit opinions. 
C) it is included when the auditors opinion has changed and the auditor wants to bring the users' attention to a particular matter. 
D) it is included when the auditor's opinion has not changed and the auditor wants to bring the users' attention to a particular matter.

The expectation gap can be reduced by:

Which of the following would be an example of a reasonable assurance engagement?

Insurance hypothesis is a means whereby the investor can guarantee the success of their investment.

The most common types of assurance engagements are financial report audits,confirmation audits,performance audits,comprehensive audits and assurance on corporate social responsibility (CSR)disclosures.

An assurance engagement is performed by an auditor or consultant to enhance the reliability of the subject matter.

A negative expression of opinion is only given when there is a disagreement with management and the auditor.

Which of the following is in? A government can be considered to be a user of the general purpose financial reports because:

Under CLERP9,which of the following is not relating to specific disclosures in the directors report?

International Auditing and Assurance Standards Board (IAASB)is not responsible for the redrafting of International Auditing Standards (ISAs)to Australian Auditing Standards (ASAs).

You must complete further study after a bachelor's degree to become a member of the CAANZ,CPA Australia or the IPA.

The main assurance service the general public are familiar with are financial report audits.Briefly describe the other services that an auditor can provide.

An audit of a financial report by the contracted auditors will give absolute assurance that the financial reports give a true and fair view of the financial performance of the entity.

The wording of a negative expression of opinion generally states that:

Which of the following is ? The Accounting Professional Ethical Standards Board (APESB):

The expectation gap is caused by unrealistic user expectations such as the auditor providing a moderate level of assurance.

Which of the following is NOT true about Corporate Social Responsibility assurance?

Only current investors (not potential investors)are considered to be users of the financial statements.

An auditor can provide a reasonable level of assurance on information other than historical financial information.

Auditor rotation in CLERP9 states that an auditor cannot perform a significant role in the audit of a client in more than

The following can be said about an emphasis of matter:

Ethics,legal Liability and Client Acceptance

Risk Assessment I

Risk Assessment II

Audit Evidence

Gaining an Understanding of the Clients System of Internal Controls

Sampling and Overview of the Risk Response Phase of the Audit

Execution of the Audit Testing of Controls

Execution of the Audit Performing Substantive Procedures

Substantive Testing and Balance Sheet Accounts

Substantive Testing and Income Statement Accounts

Completing and Reporting on the Audit

Filters

Exam 1: Introduction and Overview of Audit and Assurance

The expectation gap can be reduced by:

Which of the following would be an example of a reasonable assurance engagement?

Insurance hypothesis is a means whereby the investor can guarantee the success of their investment.

The most common types of assurance engagements are financial report audits,confirmation audits,performance audits,comprehensive audits and assurance on corporate social responsibility (CSR)disclosures.

An assurance engagement is performed by an auditor or consultant to enhance the reliability of the subject matter.

A negative expression of opinion is only given when there is a disagreement with management and the auditor.

Which of the following is in? A government can be considered to be a user of the general purpose financial reports because:

Under CLERP9,which of the following is not relating to specific disclosures in the directors report?

International Auditing and Assurance Standards Board (IAASB)is not responsible for the redrafting of International Auditing Standards (ISAs)to Australian Auditing Standards (ASAs).

You must complete further study after a bachelor's degree to become a member of the CAANZ,CPA Australia or the IPA.

The main assurance service the general public are familiar with are financial report audits.Briefly describe the other services that an auditor can provide.

An audit of a financial report by the contracted auditors will give absolute assurance that the financial reports give a true and fair view of the financial performance of the entity.

The wording of a negative expression of opinion generally states that:

Which of the following is ? The Accounting Professional Ethical Standards Board (APESB):

The expectation gap is caused by unrealistic user expectations such as the auditor providing a moderate level of assurance.

Which of the following is NOT true about Corporate Social Responsibility assurance?

Only current investors (not potential investors)are considered to be users of the financial statements.

An auditor can provide a reasonable level of assurance on information other than historical financial information.

Auditor rotation in CLERP9 states that an auditor cannot perform a significant role in the audit of a client in more than

The following can be said about an emphasis of matter:

Ethics,legal Liability and Client Acceptance

Risk Assessment I

Risk Assessment II

Audit Evidence

Gaining an Understanding of the Clients System of Internal Controls

Sampling and Overview of the Risk Response Phase of the Audit

Execution of the Audit Testing of Controls

Execution of the Audit Performing Substantive Procedures

Substantive Testing and Balance Sheet Accounts

Substantive Testing and Income Statement Accounts

Completing and Reporting on the Audit

Filters