1 Fundamental Principles Of Assurance Services

Question 1

Chap 1
Please provide types of opinion and its common phrase used

Answer 1

Unmodified opinion - Present fairly, in all material respect

Qualified - Except for

Adverse - Do no present fairly, in all material respect

Disclaimer of opinion - We do not express a conclusion

Question 2

C1
Reasonable vs. Limited Assurance Engagement as to:
1. Level of assurance provided
2. Form
3. Example
4. Procedures performed

Answer 2

1. Level of assurance provided:
   R - Reasonable or High, but not absolute
   L - Limited or Moderate
2. Form:
   R - Positive
   L - Negative
3. Example:
   R - Audit
   L - Review
4. Procedures performed
   R - Inquiry, Observation, Inspection, Analytical Procedures, confirmation, reperformance, recalculation

L - inquiry, analytical procedures

Question 3

C1
There are 2 types of Assurance Engagements as t0 structure:
1. Attestation Engagements
2. Direct Engagements

Please provide common types of attestation engagements.

And define direct engagement

Answer 3

Types of attestation:
Audit Engagement - high/reasonable but not absolute

Review Engagement - moderate level of assurance

Direct Engagements: residual definition of assurance engagement. The responsible party does not present the subject matter. Instead, the practitioner reports directly on the subject matter and provides the intended users with an assurance.

*Independece is required
*Threeparty contract

Question 4

C1
Common Examples of Non-Assurance Emgagements

Answer 4

1. Agreed upon procedures
   -users must form their own conclusions from the report of auditor
   -report is restricted to those parties who agreed to the procedures performed
2. Compilation
3. Tax Services
4. Management Advisory

*Non Assurance Engagement do not provide assurance tp the users

*Independence is not required
*two party contract

Question 5

C1
Who is the Global Organizations and Standard Setting Boards of the Accountancy Profession?

Answer 5

International Federation of Accountants (IFAC)

Which supports 4 independent standard setting boards:
1.

Question 6

C1
Sufficiency and appropriateness of evidence are considered complements?

Answer 6

F. They are interrelated but separated.

Sufficiency - Quantity
Appropriate - Quality