Auditing: a practical approach
4e
by
Moroney et al.
© John Wiley & Sons Australia, Ltd 2020
,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
General Feedback:
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
General Feedback:
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
General Feedback:
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
General Feedback:
Correct answer: b
Learning Objective 1.2 ~ Discriminate between different types of assurance services
, 5. An assurance engagement is performed by an auditor or consultant to enhance the reliability of the
subject matter.
*a. True
b. False
General Feedback:
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
General Feedback:
Correct answer: b
Learning Objective 1.3 ~ Discriminate between different levels of assurance
7. An audit engagement is performed by an Auditor to provide reasonable assurance that the financial
report gives a true and fair view of the business activities for the period.
*a. True
b. False
General Feedback:
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
General Feedback:
Correct answer: b
Learning Objective 1.3 ~ Discriminate between different levels of assurance
9. An auditor can provide a reasonable level of assurance on information other than historical financial
information.
4e
by
Moroney et al.
© John Wiley & Sons Australia, Ltd 2020
,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
General Feedback:
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
General Feedback:
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
General Feedback:
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
General Feedback:
Correct answer: b
Learning Objective 1.2 ~ Discriminate between different types of assurance services
, 5. An assurance engagement is performed by an auditor or consultant to enhance the reliability of the
subject matter.
*a. True
b. False
General Feedback:
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
General Feedback:
Correct answer: b
Learning Objective 1.3 ~ Discriminate between different levels of assurance
7. An audit engagement is performed by an Auditor to provide reasonable assurance that the financial
report gives a true and fair view of the business activities for the period.
*a. True
b. False
General Feedback:
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
General Feedback:
Correct answer: b
Learning Objective 1.3 ~ Discriminate between different levels of assurance
9. An auditor can provide a reasonable level of assurance on information other than historical financial
information.
