chapter 1 questions Flashcards
T/F
Assurance engagements require independence on the part of the auditor.
T
T/F
The degree of satisfaction achieved (the level of assurance which may be provided) is directly related to the scope of procedures performed and their results.
T
T/F
Assurance refers to the responsible party’s satisfaction as to the reliability of an assertion being made by one party for use by another party.
F
Assurance refers to the practitioner’s satisfaction
T/F
Assurance engagements performed by professional accountants are intended to enhance the credibility of information.
T
T/F
An engagement may be classified as an assurance
engagement once it meets all six elements required by
the Framework for Assurance Engagements.
F
five elements only (3SECC)
T/F
The responsible party and the intended user need to be from separate organizations.
F
he responsible party and the intended user need not be from separate organizations.
T/F
The term practitioner is broader in scope compared to the term auditor
T
T/F
A professional accountant may agree to perform an
assurance engagement which they are not competent to
carry out.
F
A professional accountant shall not agree to perform an assurance engagement which they are not competent to carry out.
T/F
The responsible party is always the one who engages the professional accountant.
F
The intended user may be the one who engages the professional accountant.
T/F
The responsible party or parties is the person(s)
responsible for the subject matter.
T
T/F
The intended user is the person or class of persons who engages the professional accountant/CPA.
F
T/F
The responsible party may also be one of the intended
users.
T
T/F
The subject matter of an assurance engagement may
be presented as a point in time or covering a period of
time.
T
T/F
Criteria are the standards or benchmarks used to evaluate or measure the subject matter of an assurance engagement.
T
T/F
In the case of an audit of. financial statements, the suitable criteria. to be used are Philippine Standards on Auditing (PSAS).
F
The criteria in an FS audit is PFRS or GAAP.
T/F
Appropriateness refers to quantity, while sufficiency refers to quality, of evidential matter.
F
T/F
Evidence obtained directly by the practitioner is less reliable than evidence. obtained indirectly or by inference.
F
T/F
The responsible party expresses a conclusion that provides a level of assurance as to whether the subject
matter conforms, in all material respects, with the identified suitable criteria.
F
The practitioner expresses a conclusion that provides a level of assurance..