Chapter 14

Question 1

What assurance conclusion would you give if there is an misstatement disagreement but it is not pervasive?

Answer 1

Express a qualified opinion of negative assurance

Question 2

What assurance conclusion would you give if there is an misstatement disagreement but it is pervasive?

Answer 2

Express an adverse opinion that the financial statements do not give a true and fair view

Question 3

What assurance conclusion would you give if there is an inability to obtain sufficient and appropriate evidence but it is not pervasive?

Answer 3

Express a qualified opinion of negative assurance due to amendments which might be required if limitation did not exist

Question 4

What assurance conclusion would you give if there is an inability to obtain sufficient and appropriate evidence but it is pervasive?

Answer 4

Do not provide any assurance

The engagement wouldn’t be even taken up

Question 5

What is the difference between and audit and other assurance engagements?

Answer 5

• Reasonable assurance vs limited assurance
• Very extensive meaning more work vs less extensive meaning less work
• Positive opinion vs negative conclusion
• High level of assurance vs Moderate level of assurance

Question 6

What does the planning stage include in an assurance engagement?

Answer 6

• Agree terms of engagement
• Understand subject matter (F/S)
• Identify criteria (measure against)
• Identify sources of evidence
• Understand the entity and its environment
• Identify intended users
• Consider personnel requirements

Question 7

What does the conclusion stage include in an assurance engagement?

Answer 7

The ISAE does not require a standardised formal report.

Due to risk, usually a negative conclusion.

“Nothing has come to our attention that causes us to believe the subject matter is not fairly stated”