ACCA 1 Audit and other assurance engagements Questions

Question 1

what is the IFAC definition of an audit?

Answer 1

The objective of an audit of financial statements is to enable the auditor to express an opinion on whether the financial statements prepared, in all material respects, in accordance with an identified reporting framework

Question 2

Definition of ‘accountable’

Answer 2

Being required or expected to justify actions or decisions

Question 3

Definition of ‘Steward’

Answer 3

A person employed to manage other peoples property

Question 4

Definition of ‘Agent’

Answer 4

A person employed to provide a particular service

Question 5

Definition of ‘True’

Answer 5

Factual and conforming with reality. In conformity with relevant standards and law and correctly extracted from accounting records

Question 6

Definition of ‘Fair’

Answer 6

Free from discrimination and bias and in compliance with expected standards and rules. Reflecting the commercial substance of underlying transactions

Question 7

Definition of ‘Materiality’

Answer 7

An expression of the relevant significance or importance of a particular matter in the context of the financial statements as a whole.

Question 8

What level of assurance is provided by a review engagement?

Answer 8

Negative Assurance

Question 9

Which of the following is NOT an assurance engagement?

External Audit
Compilation Engagement
Review Engagement
Agreed Upon Procedures

Answer 9

Compilation Engagement and Agreed Upon Procedures