ASSURANCE ENGAGEMENTS

1. The auditors satisfaction as to the reliability of an assertion being made by one party for
use by another is called:
a.
Assurance
b.
Reliance factor
c.
Precision
d.
Materiality
2. An engagement in which a practitioner expresses a conclusion designed to enhance the
degree of confidence of the intended users other than the responsibe party about the
outcome of the evaluation or measurement of a subject matter against criteria
a.
Assurance engagement
b.
Attestation engagement
c.
Audit engagement
d.
Management consulting engagement
3. The three commonly-sought types of assurance services are:
a.
Audits, review, and compilation
b.
Audits, compilations, and other assurance services.
c.
Reviews, compilations and other assurance service
d.
Audits, reviews and other assurance services
4. When a CPA has obtained sufficient appropriate evidence to conclude that the subject
matter conforms, in all material respects, with identified suitable criteria, he /she can
provide a(n):
a.
Limited level of assurance
b,
Absolute assurance
c.
Reasonable level of Assurance
d.
No assurance
5. When a CPA has obtained sufficient appropriate evidence to conclude that the subject
matter is plausible in the circumstances, he/she can provide a(n):
a.
Limited level of assurance
b.
Absolute assurance
c.
Reasonable level of Assurance
d.
No assurance
6. This assurance engagement provides reasonable assurance that the financial statements
are free of material misstatement:
a.
Financial statements audit
b.
Review of historical financial statements
c.
Compilation of financial information
d.
Agreed-upon procedures engagement.
An independent audit is the communication of economic data because the audit
a.
Confirms the accuracy of managements financial representations.
b.
Lends credibility to the financial statements.
c.
Guarantees that financial data fairly presented.
d.
Assures the readers of financial statements that any fraudulent activity has been
corrected.
Select the statement that exemplifies negative assurance:
a.
In our opinion internal control if effective, in all material respects, based on XYZ
criteria.
b.
Based on our work described in this report, nothing has come to our attention that
causes us to believe that internal control is not effective, in all material respects, based
on XYZ criteria.
c.
We do not express an opinion on the financial statements.
d.
All of the statements illustrate negative assurance.

This assurance engagement provides a limited level of assurance about the clients
historical financial statements:
a.
Financial statement audit.
b.
Review of historical financial statements.
c.
Forecast and projections.
d.
agreed upon procedures engagement