Fundamentals Principles of Assurance Services Flashcards
[True/False]
Assurance services help enhance the reliability of financial information throughout the capital markets.
True
[True/False]
Assurance refers to the practitioner’s contentment that the information made by an entity is reliable.
True
[True/False]
Assurance services refers to engagements in which a practitioner expresses a conclusion designed to enhance the degree of confidence of the practitioner about the outcome of evaluation of a subject matter.
False, to enhance the degree of confidence of the INTENDED USERS.
[True/False]
The practitioner must be independent to the responsible party and to the public.
True
[True/False]
The responsible party may not be from the same organization with the intended users but may be one of the intended users.
True
[True/False]
The intended users must have at least one responsible party to constitute as an assurance engagement.
False, assurance engagement requires a three-party relationship: the practitioner, the responsible party, and the intended users
[True/False]
Subject matter information relates to the nature of assertion with which the practitioner gathers sufficient evidence.
True
[True/False]
A subject matter is considered appropriate if it can be subject to audit procedures on a test basis.
False, an appropriate subject matter can be subject to audit procedures on a test basis AND identifiable, and capable of consistent evaluation or measurement against the identified criteria
[True/False]
The criteria serve as the yardstick to measure or evaluate the subject matter.
True
[True/False]
The criteria used to evaluate a subject matter must be included in any document that contains the assurance report issued on such subject matter.
True
[True/False]
Sufficiency and appropriateness of evidence are interrelated factors and, as such, are considered complements.
True
[True/False]
The determination of materiality is a mathematical exercise which is a vital process in planning the nature, timing and extent of assurance engagement procedures.
False, the auditor’s determination of materiality is a matter of PROFESSIONAL JUDGMENT
[True/False]
Inherent risk refers to the susceptibility of the subject matter information to misstatements before consideration of controls.
True
[True/False]
A practitioner may consider a procedure not applicable if it would entail high level of costs to the assurance service.
False, high level of costs is NOT a valid basis for omitting an evidence gathering procedures.
The practitioner may:
a) identify and perform alternative procedures that can minimize the cost; or
b) in the absence of alternative procedures, the practitioner is still required to perform the procedures as long as he believes that it is necessary and beneficial to the entire engagement
[True/False]
The more the practitioner intends to exhibit the attitude of professional skepticism, the more engagement procedures will be required.
True
[True/False]
A practitioner is not expected to be an expert in the verification of authenticity of documentation of audit evidences.
False, he is expected to be an expert in the verification of authenticity of documentation of audit evidences
[True/False]
Generally, evidence that is generated internally is more reliable than those from independent sources when the related controls are effective.
True
[True/False]
Only limited procedures are performed by the practitioner on limited assurance engagements as a basis for a negative form of conclusion.
True
[True/False]
Audits and reviews are assurance-based engagements as both the subject matter information and the practitioner’s assurance report are available to the intended users.
True
[True/False]
The three-party relationship still exists in non-assurance engagements which includes the practitioner, the responsible party and the public.
False, there’s only a TWO-PARTY RELATIONSHIP which includes the practitioner and the responsible party
[True/False]
IAASB sets high-quality international standards for assurance engagements and enhances quality control that promote public confidence to the accountancy profession.
True
[True/False]
Engagement standards are issued to provide interpretative guidance and practical assistance to professional accountants that promote good practice in performing assurance engagements.
False, it is the PRACTICE STATEMENTS, not the engagement standards
[True/False]
The report issued on non-assurance engagements must be expressed in a negative form.
False, the report is issued whether negative form OR other form of assurance
[True/False]
Procedures to be done in performing audits and reviews are exclusively determined by the auditor.
True