Consulting Services Quiz: Assurance Engagements MCQs

Questions and Answers

Which of the following procedures is normally performed in connection with a compilation engagement?

Making inquiries of management concerning actions taken at board meeting

Inquire of management about subsequent events

Applying analytical review procedures

Collect, classify and summarize financial information (correct)

The procedures employed in doing compilation are:

Designed to enable the accountant to express a negative assurance

Less extensive than review procedures but more extensive than agreed-upon procedures

Not designed to enable the accountant to express any form of assurance (correct)

Designed to enable the accountant to express a limited assurance

An engagement to apply agreed-upon procedure engagement may be accepted, provided:

The CPA has audited the financial statements of the client.

The CPA is independent with respect to the client. (correct)

The adequacy of the procedures to be performed will be determined by the CPA.

The distribution of the report will be limited only to specified parties involved. (correct)

Pronouncements of Auditing and Assurance Standards Council (AASC) do not cover:

Consultancy Signup and view all the answers

Which of the following is an example of an assurance engagement?

Reporting on financial statements prepared using other comprehensive basis of accounting. Signup and view all the answers

Which of the following statements about assurance engagements is not correct?

The Philippine Standards on Assurance Engagements issued by AASC describe the objectives and elements of assurance engagements to provide either a high, moderate or low level of assurance. Signup and view all the answers

Which of the following services provides a moderate level of assurance about the client's financial statements?

Review Signup and view all the answers

The form of attestation that provides the highest form of assurance is a(n):

Examination Signup and view all the answers

In an engagement to perform agreed-upon procedures, an auditor is engaged to:

Carry out those procedures of an audit nature to which the auditor and the entity and any appropriate third parties have agreed and to report on factual findings. Signup and view all the answers

The report on an agreed-upon procedures engagement should contain:

A statement that the auditor is independent of the entity. Signup and view all the answers

A report may be based upon applying agreed-upon procedures to specified elements, accounts, or items of a financial statement. The users of the report should participate in establishing the procedures to be performed. If the auditor cannot discuss the procedures with all the parties who will receive the report, he/she may:

All of the above Signup and view all the answers

Which of the following statements concerning consulting services is false?

Consulting services ordinarily involve external reporting. Signup and view all the answers

Which of the following is the most appropriate action to be taken by a CPA who has been asked to perform a consulting services engagement concerning the analysis of a potential merger if he/she has little experience with the industry involved?

Accept the engagement but he/she should conduct research or consult with others to obtain sufficient competence. Signup and view all the answers

The form of communication with a client in a consulting services engagement should be:

Either written or oral. Signup and view all the answers

The Philippine Standards on Auditing (PSA) require that a report be issued whenever a CPA firm:

Performs an audit. Signup and view all the answers

A practitioner is associated with financial information when:

Either I or II. Signup and view all the answers

If the auditor learns that an entity is inappropriately using the auditor’s name in association with financial information, he/she should:

Inform any known third party users of the inappropriate use of his/her name in connection with the information. Signup and view all the answers

Assurance engagements encompass the following types of services, except:

Management consulting Signup and view all the answers

A report on factual findings is the end product of the auditor when performing:

Agreed-upon procedures Signup and view all the answers

What assurance is provided by the auditor in an agreed-upon procedures engagement?

No assurance Signup and view all the answers

The term 'accountant' has been used by Auditing and Assurance Standards Council to refer to a CPA in public practice who is engaged to:

Audit financial statements Signup and view all the answers

Which of the following best describes relationships among auditing, attest, and assurance services?

Auditing and attest services represent two distinctly different types of services Signup and view all the answers

When providing consulting services, the CPA acts primarily as a(n):

Objective advisor on the use of information Signup and view all the answers

Which of the following statements concerning consulting services is incorrect?

Consulting services ordinarily involve external reporting Signup and view all the answers

In an engagement to perform agreed-upon procedures, an auditor is engaged to:

Carry out those procedures of an audit nature to which the auditor and the entity and any appropriate third parties have agreed and to report on factual findings Signup and view all the answers

Compilation is an example of which one of the following types of services?

Accounting Signup and view all the answers

Non-assurance engagements include all of the following except:

Agreed-upon procedures Signup and view all the answers

In performing an assurance engagement, a professional accountant typically:

Expresses a conclusion about an assertion Signup and view all the answers

Which of the following is not an assurance engagement?

Management Consulting Service Signup and view all the answers

Assurance engagements should exhibit the following elements except:

Appropriate professional fees Signup and view all the answers

Which of the following forms may be the subject matter of assurance engagements?

All of the above Signup and view all the answers

Which of the following is not an element of assurance engagements?

Engagement process Signup and view all the answers

Engagement risk is influenced by the risks associated with the following except:

Unreasonably low professional fee Signup and view all the answers

Absolute assurance is not attainable as a result of such factors as:

All of the above Signup and view all the answers

A CPA should not submit unaudited financial statements of a non-public entity to a client or others unless, as a minimum, the CPA complies with the provisions applicable to:

Compilation engagements Signup and view all the answers

This tax service includes the determination of the tax consequences of planned or potential transactions, followed by making suggestions on the most desirable course of action such as to legally minimize the tax liability while achieving the client’s objectives:

Tax planning Signup and view all the answers

You own Dude, Inc., which manufactures wooden tables. You need to hire some accountants to prepare your monthly financial statements. The preparation of your financial statements is referred to as a(n):

Compilation Signup and view all the answers

Distribution of a report is always restricted when:

Agreed-upon procedures have been performed Signup and view all the answers

The need for assurance services arises because:

There is a potential bias in providing information Signup and view all the answers

Assurance services involve which of the following?

All of the above Signup and view all the answers

Which of the following statements is true?

Assurance engagements performed by professional accountants are intended to enhance the credibility of information Signup and view all the answers

Which of the following statements is true?

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 Signup and view all the answers

Assurance engagements include the following, except:

An engagement conducted to provide a moderate level of assurance that the subject matter is plausible in the circumstances Signup and view all the answers

The subject matter of an assurance engagement may include:

All of the above Signup and view all the answers

Which of the following statements is true concerning evidence in an assurance engagement?

Appropriateness is the measure of the quality of evidence, that is, its reliability and persuasiveness Signup and view all the answers

An unqualified conclusion is not appropriate for either reasonable or limited assurance engagement when:

Either I or II Signup and view all the answers

The following statements relate to the performance of an assurance engagement other than an audit or review of historical financial information covered by PSAs and PSREs. Which is incorrect?

The practitioner is not allowed to use the work of persons from other professional disciplines Signup and view all the answers

Reducing assurance engagement risk to zero is very rarely attainable or cost beneficial as a result of the following factors, except:

The practitioner may not have the required assurance knowledge and skills to gather and evaluate evidence Signup and view all the answers

Which of the following standards are to be applied, as appropriate, in the audit of historical financial information?

PSAs Signup and view all the answers

Which of the following standards are to be applied to compilation engagements and engagements to perform agreed-upon procedures to information?

PSAEs Signup and view all the answers

The Philippine Standards on Review Engagements (PSREs) are to be applied in:

The review of both historical and prospective financial information Signup and view all the answers

PSRE 2400 (Engagements to Review Financial Statements), as amended by the AASC in February 2008, applies to:

Reviews of historical financial or other information of an audit client Signup and view all the answers

The Philippine Standards on Assurance Engagements (PSAEs) are to be applied in:

Assurance engagements dealing with historical financial information Signup and view all the answers

The Philippine Standards on Quality Control (PSQCs) are to be applied to:

All services that fall under the AASC's engagement standards Signup and view all the answers

These statements are issued by the AASC to provide interpretive guidance and practical assistance to auditors in the implementation of PSAs and to promote good practice.

PREPSs Signup and view all the answers

For the purpose of expressing negative assurance in the review report, the practitioner should obtain sufficient appropriate evidence primarily through:

Inquiry and analytical procedures Signup and view all the answers

A practitioner's review of an entity's financial statements does not provide assurance that he/she will become aware of all significant matters that would be disclosed in an audit. However, if the practitioner has become aware that information coming to his/her attention may be materially misstated, the practitioner should:

Carry out additional or more extensive procedures as are necessary to achieve limited assurance Signup and view all the answers

The following statements relate to a review of financial statements. Which is incorrect?

A review comprises inquiry and analytical procedures are designed to review the reliability of an assertion that is the responsibility of one party for use by another party Signup and view all the answers

The following statements relate to a review of interim financial information performed by the entity's independent auditor. Which is incorrect?

Similar to a financial statement audit, a review of interim financial information is designed to obtain reasonable assurance that the interim financial information is free from material misstatement Signup and view all the answers

When performing a compilation engagement, the accountant is required to:

Obtain a general knowledge of the business and operations of the entity Signup and view all the answers

Each page of the financial information compiled by the accountant should include the following reference, except:

'Compiled, Negative Assurance Expressed' Signup and view all the answers

An auditor may accept an engagement to perform specified procedures on the specific subject matter of specified elements, accounts, or items of a financial statement if:

Use of the report is restricted Signup and view all the answers

An engagement to perform agreed-upon procedures may involve the auditor in performing certain procedures concerning:

All of the above Signup and view all the answers

The following contain basic principles, essential procedures and related guidance, consistent with the concepts in the Framework, for the performance of assurance engagements, except:

PSRSs Signup and view all the answers

CPAs in public practice who perform assurance engagements are governed by the following, except:

Philippine Standards on Quality Control Signup and view all the answers

These are independent professional services that improve the quality of information for decision-making.

Assurance services Signup and view all the answers

Which of the following statements best describes assurance services?

Independent professional services that are intended to enhance the credibility of information to meet the needs of an intended user. Signup and view all the answers

Which of the following best describes the objective of an assurance engagement?

To enhance the credibility of information in order to improve the likelihood that the information will meet the needs of an intended user. Signup and view all the answers

The degree of certainty that the practitioner has attained and wishes to convey is:

An assurance. Signup and view all the answers

What level of assurance is provided by the auditor in an audit engagement?

High, but not absolute, level of assurance Signup and view all the answers

The level of assurance provided by an audit of detecting a material misstatement is referred to as:

Reasonable assurance. Signup and view all the answers

Of the following, which is the broadest concept?

Assurance services. Signup and view all the answers

In performing attestation services, a CPA will normally:

State a conclusion about a written assertion. Signup and view all the answers

Which of the following is the single feature that most clearly distinguishes auditing, attestation, and assurance?

Type of service. Signup and view all the answers

Which of the following services provides the highest level of assurance to third parties about a company's financial statements?

Audit. Signup and view all the answers

For assurance engagements regarding historical financial information, reasonable assurance engagements are called:

Review engagements. Signup and view all the answers

In some assurance engagements, the evaluation or measurement of the subject matter is performed by the responsible party. These engagements are called:

Assertion-based engagements. Signup and view all the answers

The following are characteristics of 'direct reporting' assurance engagements, except:

The representation of the responsible party that has performed the evaluation or measurement of the subject matter is not available to the intended users. Signup and view all the answers

What type of assurance engagement is involved when the practitioner expresses a positive form of conclusion?

Positive assurance engagement. Signup and view all the answers

What type of assurance engagement is involved when the practitioner expresses a negative form of conclusion?

Limited assurance engagement. Signup and view all the answers

Assurance engagements involve:

Three separate parties: a practitioner, a responsible party and intended users. Signup and view all the answers

Which of the following statements concerning the assurance engagement’s three party relationships is incorrect?

An entity's senior management (the responsible party) may engage a practitioner to perform an assurance engagement on a particular aspect of the entity's activities that is the immediate responsibility of a lower level of management (the intended user). Signup and view all the answers

Which of the following statements concerning the intended user of a professional accountant's report is incorrect?

The intended user should never be established by agreement between the practitioner and the responsible party or those engaging or employing the practitioner. Signup and view all the answers

Which of the following is not one of the requirements before accepting an assurance engagement?

The responsible party and the intended user of assurance report should be from different organizations. Signup and view all the answers

The following statements relate to the three parties involved in an assurance engagement. Which is correct?

A responsible party is the person who is responsible for the subject matter or the subject matter information. Signup and view all the answers

Suitable criteria are required for reasonably consistent evaluation or measurement of the subject matter of an assurance engagement. Which of the following statements concerning the characteristics of suitable criteria is correct?

Relevant criteria allow reasonably consistent evaluation or measurement of the subject matter including, where relevant, presentation and disclosure, when used in similar circumstances by similarly qualified practitioners. Signup and view all the answers

Criteria that are embodied in laws or regulations, or issued by authorized or recognized bodies of experts that follow a transparent due process are called:

Established criteria Signup and view all the answers

Which of the following is not a characteristic of suitable criteria?

Comparability Signup and view all the answers

The criteria to be used for a particular engagement can either be established or specifically developed. Established criteria are those:

Embodied in laws or regulations or issued by authorized or recognized bodies of experts that follow a transparent due process. Signup and view all the answers

A practitioner should accept an assurance engagement only if:

The practitioner's conclusion is to be contained in a written report. Signup and view all the answers

In an assurance engagement, this refers to the information obtained by the practitioner in arriving at the conclusions on which the conclusion is based.

Evidence Signup and view all the answers

Assurance engagement risk is the risk:

That the practitioner expresses an inappropriate conclusion when the subject matter information is materially misstated. Signup and view all the answers

The following are components of assurance engagement risk, except:

Business risk Signup and view all the answers

The predominant type of attestation service performed by CPAs is:

Audit. Signup and view all the answers

Which of the following characteristics is not considered necessary in determining whether the criteria are suitable?

Sufficiency Signup and view all the answers

The assurance report is often addressed to the intended users which may be:

Both A and B Signup and view all the answers

When performing an assurance service, professional accountants use standards or benchmarks to evaluate or measure the subject matter of an assurance engagement. This is known as:

Criteria. Signup and view all the answers

Which of the following services provides positive assurance through attestation?

Auditing Signup and view all the answers

The three commonly-sought types of assurance services are:

Audits, reviews, and compilations. Signup and view all the answers

Positive assurance is expressed through:

Conclusion Signup and view all the answers

The subject matter of an assurance engagement can take the following forms except:

The entity’s internal control. Signup and view all the answers

Which of the following statements best describes review services?

Review engagements focus on providing limited assurance on financial statements of a private company. Signup and view all the answers

A review of a company's financial statements by a CPA firm:

Is significantly less in scope than an audit and results in a report which provides positive assurance, although not absolute assurance. Signup and view all the answers

The objective of a review of financial statements is to:

State whether anything has come to the auditor's attention that indicates that the financial statements are not presented fairly. Signup and view all the answers

Which of the following is incorrect regarding a compilation engagement?

The CPA uses his auditing expertise to collect, classify and summarize financial information. Signup and view all the answers

The type of assurance that is provided by the CPA on a compilation report is:

No assurance. Signup and view all the answers

Which of the following statements concerning compilation engagement is incorrect?

The procedures employed in a compilation engagement enable the accountant to express a moderate level of assurance on the compiled financial information. Signup and view all the answers

Assurance services differ from consulting services in that they:

Involve monitoring of one party by another. Signup and view all the answers

For assurance engagements which are neither audits nor reviews of historical financial information, the following standard applies:

PSAEs Signup and view all the answers

Unlike consulting services, in assurance services:

There is confirmation that financial statement assertions are accurate. Signup and view all the answers

The attest function:

Includes the preparation of a written report of the CPA's conclusion. Signup and view all the answers

Which of the following is an assurance service?

Performance measurement Signup and view all the answers

Non-assurance engagements include all of the following services, except:

Agreed-upon procedures engagements. Signup and view all the answers

Unlike consulting services, assurance services:

Report on the quality of information. Signup and view all the answers

Identify the correct statement.

Accounting services do not provide attestation. Signup and view all the answers

An attestation engagement is one in which a CPA is engaged to:

Issue a written communication expressing a conclusion about the reliability of a written assertion that is the responsibility of another party. Signup and view all the answers

Study Notes

Fundamentals of Assurance Engagements

Assurance services are independent professional services aimed at enhancing the quality of information for decision-making.
The primary objective of assurance engagements is to enhance the credibility of information for intended users.
Assurance engagement risk involves the risk of expressing an inappropriate conclusion regarding the subject matter information, potentially impacting decision-making.

Types of Assurance Services

Audits provide a positive level of assurance, focusing on the fairness of financial statements.
Reviews provide limited assurance and are less comprehensive than audits.
Compilation engagements involve summarizing financial information without providing any assurance.
Attestation services involve a written conclusion about the reliability of a written assertion made by another party.

Levels of Assurance

High assurance is provided in audit engagements, while reasonable assurance applies to audits detecting material misstatement.
Positive assurance indicates higher certainty, while limited or negative assurance indicates less certainty regarding conclusions drawn.

Components of Assurance Engagements

Engagements typically involve three parties: a practitioner, a responsible party, and intended users.
Suitable criteria are essential for consistent evaluation or measurement, including relevance, reliability, and neutrality.

Characteristics of Criteria

Established criteria come from laws or recognized bodies and follow a transparent process, ensuring reliability.
Characteristics of suitable criteria encompass completeness, neutrality, comparability, and relevance.

Engagement Acceptance Criteria

Practitioners must ensure competency and independence and that the subject matter can be subjected to evidence-gathering procedures.
The responsible party is primarily accountable for the subject matter in assurance engagements.

Relationships in Assurance Engagements

The responsible party may also be an intended user; however, their roles can be within the same entity or different entities.
The CPA is engaged to provide assurance and should not accept engagements requiring skills beyond their expertise.

Attest Function

The attest function is critical; it includes preparing a written report and verifying the conclusions drawn by the CPA.
Positive assurance is expressed through attestation, while negative conclusions fall under limited assurance categories.

Distinction Between Services

Assurance services emphasize evaluation of information quality, while consulting services generally provide recommendations without direct content evaluation.
A clear distinction exists between the roles of an auditor (assurance) and a consultant, as the former provides attestation on reliability.

Engagement Products

The end product of an agreed-upon procedures engagement is a report on factual findings, whereas an assurance report addresses conclusions regarding the subject matter.
A compilation engagement does not provide assurance, focusing instead on gathering and summarizing financial data with due care.

Conclusion

Understanding the different service types, levels of assurance, criteria characteristics, and regulatory distinction between assurance and consulting services is vital for practice in auditing and assurance engagements.### CPA Services Overview
CPAs often provide a combination of audit, tax, and consulting services to clients.

Engagement Types and Assurances

Agreed-Upon Procedures: Involves executing predefined audit procedures and reporting factual findings.
Compilation: Represents an accounting service rather than auditing, compiling financial information without providing assurance.
Non-Assurance Engagements: Includes management consulting and preparation of tax returns without expressing a conclusion.

Assurance Engagement Characteristics

Assurance engagements result in a conclusion about assertions made by a responsible party.
Elements of Assurance Engagements: Must include subject matter, suitable criteria, and evidence. Professional fees are not a requisite element.
Subject Matter: Can consist of historical financial information, systems, processes, and behaviors.

Assurance Level Insights

Levels of assurance in engagements vary from low (compilation) to high (audit).
Absolute assurance is elusive due to selective testing and limitations of control systems.

Professional Standards and Framework

Philippine Standards on Assurance Engagements (PSAEs) apply to historical financial information audits while PSREs focus on review engagements.
Philippine Standards on Quality Control are applicable across various services by CPAs.

Procedures and Principles

Compilation engagements require accountants to gather and summarize financial data, though no assurance is provided.
Assurance engagements are not limited to financial data; they also encompass non-financial information and processes.

Reporting and Communications

Agreed-upon procedures limit report distribution to specified parties and focus solely on factual findings.
Review engagements provide negative assurance, indicating the lack of material misstatements without comprehensive verification found in audits.

Other Key Regulations

CPA engagements must adhere to the framework set by the AASC, including comprehensive standards for audits, reviews, and compilations.
Disclosure of an engagement's nature (i.e., "unaudited") is crucial in maintaining transparency regarding the level of assurance provided.

Auditing and Assurance Scope

Effective assurance services address potential biases in information, providing users with credible insights through evaluations against suitable criteria.
Various forms of evidence contribute to assessments in assurance engagements, balancing relevance, reliability, and appropriateness.

Conclusion

Assurance engagements facilitate enhanced credibility of information, addressing the complexities and biases inherent in financial reporting and operational processes.### Procedures and Reports
Agreed-upon procedures involve a general description of the procedures performed and an expression of positive assurance.
Auditors must state their independence from the entity being audited and identify the purpose of the procedures.

User Involvement

Users of the report should participate in establishing the procedures to be performed.
If the auditor cannot discuss procedures with all parties, they can:
- Discuss with representatives of involved parties.
- Review correspondence from those parties.
- Distribute a draft report to involved parties.

Consulting Services Independence

Providing consulting services for audit clients does not automatically impair auditor independence.
Consulting services are distinct from the auditor's role in attestation to the assertions of other parties.
Many CPAs offer both audit/tax services and consulting services.

Communication in Consulting Engagements

Communication in consulting engagements can be either written or oral.
Written communication should involve sending copies to both management and the board of directors for transparency.

CPA Engagement in Consulting Services

For consulting on a potential merger, if lacking experience, a CPA may:
- Accept the engagement but conduct research or seek advice for competence.
- Decline if lacking sufficient knowledge.

Reporting Requirements

Philippine Standards on Auditing (PSA) mandate a report whenever a CPA firm performs an audit, is associated with financial statements, or performs SEC regulated work.

Association with Financial Information

A practitioner is associated with financial information if they attach a report to it or consent to the use of their name professionally.

Inappropriate Use of Auditor's Name

If an auditor discovers inappropriate use of their name with financial information, they should:
- Require management to cease this practice.
- Inform third-party users of the misuse.
- Seek legal advice if necessary.

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Description

Test your knowledge of auditing theory through this multiple-choice quiz on the fundamentals of assurance engagements. Each question is designed to assess your understanding of independent professional services that enhance decision-making quality.

Auditing Theory: Assurance Engagements MCQ

Questions and Answers

Which of the following procedures is normally performed in connection with a compilation engagement?

The procedures employed in doing compilation are:

An engagement to apply agreed-upon procedure engagement may be accepted, provided:

Pronouncements of Auditing and Assurance Standards Council (AASC) do not cover:

Which of the following is an example of an assurance engagement?

Which of the following statements about assurance engagements is not correct?

Which of the following services provides a moderate level of assurance about the client's financial statements?

The form of attestation that provides the highest form of assurance is a(n):

In an engagement to perform agreed-upon procedures, an auditor is engaged to:

The report on an agreed-upon procedures engagement should contain:

Which of the following statements concerning consulting services is false?

Which of the following is the most appropriate action to be taken by a CPA who has been asked to perform a consulting services engagement concerning the analysis of a potential merger if he/she has little experience with the industry involved?

The form of communication with a client in a consulting services engagement should be:

The Philippine Standards on Auditing (PSA) require that a report be issued whenever a CPA firm:

A practitioner is associated with financial information when:

If the auditor learns that an entity is inappropriately using the auditor’s name in association with financial information, he/she should:

Assurance engagements encompass the following types of services, except:

A report on factual findings is the end product of the auditor when performing:

What assurance is provided by the auditor in an agreed-upon procedures engagement?

The term 'accountant' has been used by Auditing and Assurance Standards Council to refer to a CPA in public practice who is engaged to:

Which of the following best describes relationships among auditing, attest, and assurance services?

When providing consulting services, the CPA acts primarily as a(n):

Which of the following statements concerning consulting services is incorrect?

In an engagement to perform agreed-upon procedures, an auditor is engaged to:

Compilation is an example of which one of the following types of services?

Non-assurance engagements include all of the following except:

In performing an assurance engagement, a professional accountant typically:

Which of the following is not an assurance engagement?

Assurance engagements should exhibit the following elements except:

Which of the following forms may be the subject matter of assurance engagements?

Which of the following is not an element of assurance engagements?

Engagement risk is influenced by the risks associated with the following except:

Absolute assurance is not attainable as a result of such factors as:

A CPA should not submit unaudited financial statements of a non-public entity to a client or others unless, as a minimum, the CPA complies with the provisions applicable to:

This tax service includes the determination of the tax consequences of planned or potential transactions, followed by making suggestions on the most desirable course of action such as to legally minimize the tax liability while achieving the client’s objectives:

You own Dude, Inc., which manufactures wooden tables. You need to hire some accountants to prepare your monthly financial statements. The preparation of your financial statements is referred to as a(n):

Distribution of a report is always restricted when:

The need for assurance services arises because:

Assurance services involve which of the following?

Which of the following statements is true?

Which of the following statements is true?

Assurance engagements include the following, except:

The subject matter of an assurance engagement may include:

Which of the following statements is true concerning evidence in an assurance engagement?

An unqualified conclusion is not appropriate for either reasonable or limited assurance engagement when:

The following statements relate to the performance of an assurance engagement other than an audit or review of historical financial information covered by PSAs and PSREs. Which is incorrect?

Reducing assurance engagement risk to zero is very rarely attainable or cost beneficial as a result of the following factors, except:

Which of the following standards are to be applied, as appropriate, in the audit of historical financial information?

Which of the following standards are to be applied to compilation engagements and engagements to perform agreed-upon procedures to information?

The Philippine Standards on Review Engagements (PSREs) are to be applied in:

PSRE 2400 (Engagements to Review Financial Statements), as amended by the AASC in February 2008, applies to:

The Philippine Standards on Assurance Engagements (PSAEs) are to be applied in:

The Philippine Standards on Quality Control (PSQCs) are to be applied to:

These statements are issued by the AASC to provide interpretive guidance and practical assistance to auditors in the implementation of PSAs and to promote good practice.

For the purpose of expressing negative assurance in the review report, the practitioner should obtain sufficient appropriate evidence primarily through:

The following statements relate to a review of financial statements. Which is incorrect?

The following statements relate to a review of interim financial information performed by the entity's independent auditor. Which is incorrect?

When performing a compilation engagement, the accountant is required to:

Each page of the financial information compiled by the accountant should include the following reference, except:

An auditor may accept an engagement to perform specified procedures on the specific subject matter of specified elements, accounts, or items of a financial statement if:

An engagement to perform agreed-upon procedures may involve the auditor in performing certain procedures concerning:

The following contain basic principles, essential procedures and related guidance, consistent with the concepts in the Framework, for the performance of assurance engagements, except:

CPAs in public practice who perform assurance engagements are governed by the following, except:

These are independent professional services that improve the quality of information for decision-making.

Which of the following statements best describes assurance services?

Which of the following best describes the objective of an assurance engagement?

The degree of certainty that the practitioner has attained and wishes to convey is:

What level of assurance is provided by the auditor in an audit engagement?

The level of assurance provided by an audit of detecting a material misstatement is referred to as:

Of the following, which is the broadest concept?

In performing attestation services, a CPA will normally:

Which of the following is the single feature that most clearly distinguishes auditing, attestation, and assurance?

Which of the following services provides the highest level of assurance to third parties about a company's financial statements?

For assurance engagements regarding historical financial information, reasonable assurance engagements are called:

In some assurance engagements, the evaluation or measurement of the subject matter is performed by the responsible party. These engagements are called:

The following are characteristics of 'direct reporting' assurance engagements, except:

What type of assurance engagement is involved when the practitioner expresses a positive form of conclusion?

What type of assurance engagement is involved when the practitioner expresses a negative form of conclusion?