2.0
• Question 1 of 3: / 2.0 Points
Your colleague asks you to explain to him what a reasonable assurance engagement is in terms of
the International Standards on Auditing. Which option below represents the correct explanation of a
reasonable assurance engagement?
o A. A reduction in assurance engagement risk to an acceptably low level; a
positive form of expression of the practitioner’s conclusion; procedures for
gathering sufficient, appropriate evidence are deliberately limited.
o B. A reduction in assurance engagement risk to a level that is acceptable in the
circumstances of the engagement but where that risk is greater than for a reasonable
assurance engagement; a positive form of expression of the practitioner’s
conclusion.
o C. A reduction in assurance engagement risk to an acceptably low level; a
positive form of expression of the practitioner’s conclusion; sufficient, appropriate
evidence is gathered as part of a systematic engagement process; a moderate level
of assurance is given.
o D. A reduction in assurance engagement risk to an acceptably low level; a
positive form of expression of the practitioner’s conclusion; sufficient, appropriate
evidence is gathered as part of a systematic engagement process; the auditor gives
reasonable assurance regarding the fair presentation of the financial statements.
Answer Key:D
0.0
• Question 2 of 3: / 2.0 Points
Which one of the following statements is true with regard to the elements of an assurance
engagement in terms of the International Framework for Assurance Engagements?
, o A. A written assurance report is issued when sufficient, appropriate evidence is
gathered as part of a systematic engagement process providing absolute assurance
about the fair presentation of the annual financial statements.
o B. One of the elements is a three-party relationship involving a practitioner, a
responsible party and a suitable criterion.
o C. International Financial Reporting Standards (IFRS) are suitable criteria to
evaluate the subject matter.
o D. The intended users of the subject matter are the directors of the company.
Answer Key:C
0.0
• Question 3 of 3: / 2.0 Points
The auditing firm RA Auditors would like to accept a new client engagement within the mining
industry. They do not have any other clients or experience within this industry. When determining
whether to accept the client, the auditor must consider, amongst others, the following criteria in
terms of the International Standards of Quality Control 1 (ISQC 1). The following statements are
possible criteria:
o The firm personnel have knowledge of the mining industry and related subject matter,
including regulatory and reporting requirements.
o The firm have access to experts in the field, if required.
1. The firm have access to quality control reviewers who meet the criteria and eligibility
requirements.
2. The firm is able to complete the engagement within the reporting deadline.
Choose the option that indicates correct criteria the auditor must consider when accepting the
above-mentioned new client in the mining industry in terms of ISQC 1:
o A.
2, 3 and 4
o B.
1, 2 and 3
o C.
1, 2 and 4
• Question 1 of 3: / 2.0 Points
Your colleague asks you to explain to him what a reasonable assurance engagement is in terms of
the International Standards on Auditing. Which option below represents the correct explanation of a
reasonable assurance engagement?
o A. A reduction in assurance engagement risk to an acceptably low level; a
positive form of expression of the practitioner’s conclusion; procedures for
gathering sufficient, appropriate evidence are deliberately limited.
o B. A reduction in assurance engagement risk to a level that is acceptable in the
circumstances of the engagement but where that risk is greater than for a reasonable
assurance engagement; a positive form of expression of the practitioner’s
conclusion.
o C. A reduction in assurance engagement risk to an acceptably low level; a
positive form of expression of the practitioner’s conclusion; sufficient, appropriate
evidence is gathered as part of a systematic engagement process; a moderate level
of assurance is given.
o D. A reduction in assurance engagement risk to an acceptably low level; a
positive form of expression of the practitioner’s conclusion; sufficient, appropriate
evidence is gathered as part of a systematic engagement process; the auditor gives
reasonable assurance regarding the fair presentation of the financial statements.
Answer Key:D
0.0
• Question 2 of 3: / 2.0 Points
Which one of the following statements is true with regard to the elements of an assurance
engagement in terms of the International Framework for Assurance Engagements?
, o A. A written assurance report is issued when sufficient, appropriate evidence is
gathered as part of a systematic engagement process providing absolute assurance
about the fair presentation of the annual financial statements.
o B. One of the elements is a three-party relationship involving a practitioner, a
responsible party and a suitable criterion.
o C. International Financial Reporting Standards (IFRS) are suitable criteria to
evaluate the subject matter.
o D. The intended users of the subject matter are the directors of the company.
Answer Key:C
0.0
• Question 3 of 3: / 2.0 Points
The auditing firm RA Auditors would like to accept a new client engagement within the mining
industry. They do not have any other clients or experience within this industry. When determining
whether to accept the client, the auditor must consider, amongst others, the following criteria in
terms of the International Standards of Quality Control 1 (ISQC 1). The following statements are
possible criteria:
o The firm personnel have knowledge of the mining industry and related subject matter,
including regulatory and reporting requirements.
o The firm have access to experts in the field, if required.
1. The firm have access to quality control reviewers who meet the criteria and eligibility
requirements.
2. The firm is able to complete the engagement within the reporting deadline.
Choose the option that indicates correct criteria the auditor must consider when accepting the
above-mentioned new client in the mining industry in terms of ISQC 1:
o A.
2, 3 and 4
o B.
1, 2 and 3
o C.
1, 2 and 4
