Question 1

The nature of audit procedures refers to the reliance on evidence provided by the client and its management.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

The answer of The main assurance service the general public...

Question 3

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 4

An operational audit is an example of a compliance audit.

Accepted Answer

A) True 
 B)False

Question 5

Matt Stairs performed work for a client in the real estate business and issued a Notice to Reader. What degree of assurance does a Notice to Reader provide to the user of the statements?

Accepted Answer

A)  reasonable assurance 
B)  moderate assurance 
C)  no assurance 
D)  none of the above

Question 6

Ming Yao reviewed the operations of a basketball academy. His objectives were to determine how effectively the academy delivered its many programs. What kind of an audit did he perform?

Accepted Answer

A)  operational 
B)  compliance 
C)  financial 
D)  comprehensive

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

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

Question 9

Vera Sobczyk spent a week at a client's wholesale operation determining whether the client's remittances to the tax authorities were in accordance with tax regulations. This is an example of a(n)

Accepted Answer

A)  taxes payable mandate 
B)  financial audit 
C)  operational audit 
D)  none of these

Question 10

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

Exam 1: Introduction and Overview of Audit and Assurance

The nature of audit procedures refers to the reliance on evidence provided by the client and its management.

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

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

An operational audit is an example of a compliance audit.

Matt Stairs performed work for a client in the real estate business and issued a Notice to Reader. What degree of assurance does a Notice to Reader provide to the user of the statements?

Ming Yao reviewed the operations of a basketball academy. His objectives were to determine how effectively the academy delivered its many programs. What kind of an audit did he perform?

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

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

Vera Sobczyk spent a week at a client's wholesale operation determining whether the client's remittances to the tax authorities were in accordance with tax regulations. This is an example of a(n)

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