Test Bank for
Auditing A Practical
Approach 3e
(Australia) Robyn
Moroney, Fiona
Campbell, Jane
Hamilton (All
Chapters Download
link at the end of
this file)
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,Chapter 1: Introduction and overview of audit and assurance
True/False
1. The nature of audit procedures refers to the reliance on evidence provided by the
client and its management.
*a. True
b. False
Correct answer: a
Learning Objective 1.2 ~ Discriminate between different types of assurance services
2. A compliance audit involves gathering evidence to ascertain whether the person or
entity under review has followed the rules, policies, procedures, laws and regulations
with which they must conform.
*a. True
b. False
Correct answer: a
Learning Objective 1.2 ~ Discriminate between different types of assurance services
3. An operational audit is an example of a compliance audit.
a. True
*b. False
Correct answer: b
Learning Objective 1.2 ~ Discriminate between different types of assurance services
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.
a. True
*b. False
Correct answer: b
Learning Objective 1.2 ~ Discriminate between different types of assurance services
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, Chapter 1: Introduction and overview of audit and assurance
5. An assurance engagement is performed by an auditor or consultant to enhance the
reliability of the subject matter.
*a. True
b. False
Correct answer: a
Learning Objective 1.2 ~ Discriminate between different types of assurance services
6. 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.
a. True
*b. False
Correct answer: b
Learning Objective 1.3 ~ Discriminate between different levels of assurance
7. An audit engagement is performed by an Auditor to provide a reasonable assurance
that the financial report gives a true and fair view of the business activities for the
period.
*a. True
b. False
Correct answer: a
Learning Objective 1.3 ~ Discriminate between different levels of assurance
8. A no assurance engagement is of little use as no assurance is given to the client.
a. True
*b. False
Correct answer: b
Learning Objective 1.3 ~ Discriminate between different levels of assurance
Downloaded by: tutorsection | Want to earn $1.236
Distribution of this document is illegal extra per year?
Auditing A Practical
Approach 3e
(Australia) Robyn
Moroney, Fiona
Campbell, Jane
Hamilton (All
Chapters Download
link at the end of
this file)
Downloaded by: tutorsection | Want to earn $1.236
Distribution of this document is illegal extra per year?
,Chapter 1: Introduction and overview of audit and assurance
True/False
1. The nature of audit procedures refers to the reliance on evidence provided by the
client and its management.
*a. True
b. False
Correct answer: a
Learning Objective 1.2 ~ Discriminate between different types of assurance services
2. A compliance audit involves gathering evidence to ascertain whether the person or
entity under review has followed the rules, policies, procedures, laws and regulations
with which they must conform.
*a. True
b. False
Correct answer: a
Learning Objective 1.2 ~ Discriminate between different types of assurance services
3. An operational audit is an example of a compliance audit.
a. True
*b. False
Correct answer: b
Learning Objective 1.2 ~ Discriminate between different types of assurance services
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.
a. True
*b. False
Correct answer: b
Learning Objective 1.2 ~ Discriminate between different types of assurance services
Downloaded by: tutorsection | Want to earn $1.236
Distribution of this document is illegal extra per year?
, Chapter 1: Introduction and overview of audit and assurance
5. An assurance engagement is performed by an auditor or consultant to enhance the
reliability of the subject matter.
*a. True
b. False
Correct answer: a
Learning Objective 1.2 ~ Discriminate between different types of assurance services
6. 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.
a. True
*b. False
Correct answer: b
Learning Objective 1.3 ~ Discriminate between different levels of assurance
7. An audit engagement is performed by an Auditor to provide a reasonable assurance
that the financial report gives a true and fair view of the business activities for the
period.
*a. True
b. False
Correct answer: a
Learning Objective 1.3 ~ Discriminate between different levels of assurance
8. A no assurance engagement is of little use as no assurance is given to the client.
a. True
*b. False
Correct answer: b
Learning Objective 1.3 ~ Discriminate between different levels of assurance
Downloaded by: tutorsection | Want to earn $1.236
Distribution of this document is illegal extra per year?
