Test Bank for Auditing And Assurance Services In Australia, 8th Edition by Grant Gay

Answers Included ✅
Chap 01 8e
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question.
1) Which of the following is not an element of an assurance engagement?
1) ______
A) Three-party relationship.
B) Approved assurance standards.
C) Sufficient appropriate evidence.
D) A written assurance report.

Question Details
Business Competency : Analytic
Difficulty : Easy
Learning Objective : 01.01 Understand the framework for assurance engagements and the types of assura
Topic : The framework for assurance engagements and the types of assurance engagements
Source : Chapter 01 Test Bank > MC Qu. 01-01 Which of the following is...


2) Who is the responsible party for the adequacy of the disclosure in the financial report and
accompanying notes?
2) ______
A) Auditor in charge of fieldwork.
B) The entity's board of directors.
C) Auditor who signs the auditor's report.
D) The Australian Securities and Investments Commission.

Question Details
Business Competency : Analytic
Difficulty : Easy
Learning Objective : 01.01 Understand the framework for assurance engagements and the types of assura
Topic : The framework for assurance engagements and the types of assurance engagements
Source : Chapter 01 Test Bank > MC Qu. 01-02 Who is the responsible party...




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,3) At what levels can assurance be provided under the assurance services framework?
3) ______
A) Reasonable assurance and limited assurance.
B) High assurance and reasonable assurance.
C) Assurance can be provided on a continuum from 0% to 100%.
D) Assurance can be provided on a continuum from absolute to limited.

Question Details
Business Competency : Analytic
Difficulty : Easy
Learning Objective : 01.01 Understand the framework for assurance engagements and the types of assura
Topic : The framework for assurance engagements and the types of assurance engagements
Source : Chapter 01 Test Bank > MC Qu. 01-03 At what levels can assurance...


4) Independent auditors are referred to as "independent" because:
4) ______
A) their offices are not at the entity's place of business.
B) they are not employees of the entity being audited.
C) they are paid by parties outside of the audited entity.
D) they report to users outside of the audited entity.

Question Details
Business Competency : Analytic
Difficulty : Easy
Learning Objective : 01.01 Understand the framework for assurance engagements and the types of assura
Topic : The framework for assurance engagements and the types of assurance engagements
Source : Chapter 01 Test Bank > MC Qu. 01-04 Independent auditors are referred to...


5) The highest level of assurance is provided by:
5) ______
A) compiling financial reports.
B) agreed-upon procedures.
C) review.
D) audit.

Question Details
Business Competency : Analytic
Difficulty : Easy
Learning Objective : 01.01 Understand the framework for assurance engagements and the types of assura
Topic : The framework for assurance engagements and the types of assurance engagements
Source : Chapter 01 Test Bank > MC Qu. 01-05 The highest level of assurance...




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,6) Which of the following can be the underlying subject matter of the audit?
6) ______
A) The financial report of a company.
B) The Australian accounting standards.
C) The Australian auditing standards.
D) The auditor's report.

Question Details
Business Competency : Analytic
Difficulty : Easy
Learning Objective : 01.01 Understand the framework for assurance engagements and the types of assura
Topic : The framework for assurance engagements and the types of assurance engagements
Source : Chapter 01 Test Bank > MC Qu. 01-06 Which of the following can...


7) An audit establishes the conformity of assertions with suitable criteria. In an audit of a
financial report, the criteria by which financial report assertions are judged are:
7) ______
A) the ethical rules of conduct.
B) Australian Auditing Standards.
C) listing rules of the Australian Securities and Investments Commission.
D) applicable accounting standards.

Question Details
Business Competency : Analytic
Difficulty : Easy
Learning Objective : 01.01 Understand the framework for assurance engagements and the types of assura
Topic : The framework for assurance engagements and the types of assurance engagements
Source : Chapter 01 Test Bank > MC Qu. 01-07 An audit establishes the conformity...


8) An assurance engagement involves a three-party relationship. Which of the following is one
of those three parties for an audit of financial statements undertaken in Australia?
8) ______
A) The Australian Accounting Standards Board.
B) The Australian Auditing Standards Board.
C) The Australian Securities and Investments Commission.
D) The Board of Directors.

Question Details
Business Competency : Analytic
Difficulty : Medium
Learning Objective : 01.01 Understand the framework for assurance engagements and the types of assura
Topic : The framework for assurance engagements and the types of assurance engagements
Source : Chapter 01 Test Bank > MC Qu. 01-08 An assurance engagement involves a...




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, 9) To which assurance engagements does the Framework for Assurance Engagements apply?
9) ______
A) Audits of historical financial information.
B) Reviews of historical financial information.
C) Assurance engagements other than audits or reviews of historical financial
information.
D) All of the given answers are correct.

Question Details
Business Competency : Analytic
Difficulty : Medium
Learning Objective : 01.01 Understand the framework for assurance engagements and the types of assura
Topic : The framework for assurance engagements and the types of assurance engagements
Source : Chapter 01 Test Bank > MC Qu. 01-09 To which assurance engagements does...


10) What is a direct engagement?
10) ______
A) The assurance provider is directly appointed by the responsible party.
B) The assurance engagement contains both financial report and performance
engagement elements.
C) Shareholders directly appoint the auditor, rather than the company.
D) The auditor directly measures or evaluates the underlying subject matter against the
criteria.

Question Details
Business Competency : Analytic
Difficulty : Medium
Learning Objective : 01.01 Understand the framework for assurance engagements and the types of assura
Topic : The framework for assurance engagements and the types of assurance engagements
Source : Chapter 01 Test Bank > MC Qu. 01-10 What is a direct engagement?...




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