Solutions for AUDITING ASSUMPTIONS
AND PRINCIPLES 15th Canadian Edition
Arens
Which statement does not accurately describe an assurance engagement?
A. The objective of an assurance engagement is for a professional accountant to evaluate or
measure a subject matter that uses the responsibility of another party against identified suitable
criteria, and to express a conclusion that provides the intended user with a level of assurance
about that subject matter.
B Not all engagements performed by professional accountants are assurance engagement.
C. A particular engagement, to be an assurance engagement, depends upon whether it exhibits
all the following elements: a two-party relationship, a subject matter, suitable criteria, and a
conclusion.
D. An engagement in the form of agreed-upon procedures results in the expression of factual
findings. - ANSC. A particular engagement, to be an assurance engagement, depends upon
whether it exhibits all the following elements: a two-party relationship, a subject matter, suitable
criteria, and a conclusion.
The Philippine Framework for assurance engagements is a standard that establishes basic
principles and essential procedures for the performance of assurance engagements.
A. Contains basic principles, essential procedures, and related guidance for the performance of
assurance engagements.
B. Defines and describes the elements and objectives of an assurance engagement, and
identifies engagements to which PSAs, PSREs, and PSAEs apply.
C. Provides a frame of references for CPAs in public practice when performing audits, reviews,
and compilations of historical financial information.
D. Establishes standards and provides procedural requirements for the performance of
assurance engagement. - ANSB. Defines and describes the elements and objectives of an
assurance engagement, and identifies engagements to which PSAs, PSREs, and PSAEs apply.
The independence auditor lends credibility to client financial statements by:
A. Stating in the auditor's management letter that the examination was made in accordance with
PSAs.
,B. Maintaining a clear-cut distinction between the managements and the auditor's
representations.
C. Attaching an auditor's opinion to the client's FSs.
D. Testifying under oath about client financial information. - ANSC. Attaching an auditor's
opinion to the client's FSs.
Assurance services can be best described as
A. Is broader than attestation but lesser in scope than an audit
B. Processes that measure and communicate financial data to intended users.
C. Independent professional services intended to enhance the credibility of information to meet
the needs of an intended user
D. Engagement is design to enable an independent practitioner to express an opinion as to the
fairness of historical financial information. - ANSC. Independent professional services intended
to enhance the credibility of information to meet the needs of an intended user
Practitioners who perform assurance engagements are governed by the following, except
A. Code of Ethics for Professional Accountants in the' Philippines
B. The Framework to Assurance Engagements
C. Philippines Standards on Quality Control
D. Philippine Financial Reporting Standards - ANSD. Philippine Financial Reporting Standards
The Philippine Standards on Assurance Engagements (PSAEs) are to be applied in
A. Assurance engagements dealing with subject matters other than historical financial
information.
B. Compilation engagements and agreements to apply agreed-upon procedures to information.
C. The audit or review of historical financial information.
D. Assurance engagements dealing with historical financial information. - ANSA. Assurance
engagements dealing with subject matters other than historical financial information.
Which of the following statements best describes assurance services?
, A. Independent professional services that are intended to enhance the credibility of information
to meet the needs of an Intended user
B. Services designed to express an opinion on the fairness of historical financial statements
based on the result of an audit.
C, The preparation of financial statements or the collection, classification, and summarization of
other financial information.
D. Services designed for the improvement of operations, resulting in better outcomes. - ANSA.
Independent professional services that are intended to enhance the credibility of information to
meet the needs of an Intended user
The risk that the information presented may; be materiality false and misleading is referred to as
the
A. Business risk
B. Information risk
C. Client risk
D. Risk assessment - ANSB. Information risk
Which of the following statements is/are correct?
I. Assurance engagement means an engagement in which a practitioner expresses a conclusion
designed to enhance the degree of confidence of the intended users other than the responsible
party about the outcome of the evaluation or measurement of a subject matter against criteria.
II. Assurance refers to the practitioner's satisfaction with the reliability of an assertion being
made by one party for use by another party
A. I only
B. Both I and II
C. II only
D. Neither I nor II - ANSB. Both I and II
Financial statements need to be prepared in accordance with one, or a combination of:
I. PSAs
II. IFRS
III. Other financial reporting framework
IV. GAAP in the Philippines
A. I, III and IV only
B. II & IV only
AND PRINCIPLES 15th Canadian Edition
Arens
Which statement does not accurately describe an assurance engagement?
A. The objective of an assurance engagement is for a professional accountant to evaluate or
measure a subject matter that uses the responsibility of another party against identified suitable
criteria, and to express a conclusion that provides the intended user with a level of assurance
about that subject matter.
B Not all engagements performed by professional accountants are assurance engagement.
C. A particular engagement, to be an assurance engagement, depends upon whether it exhibits
all the following elements: a two-party relationship, a subject matter, suitable criteria, and a
conclusion.
D. An engagement in the form of agreed-upon procedures results in the expression of factual
findings. - ANSC. A particular engagement, to be an assurance engagement, depends upon
whether it exhibits all the following elements: a two-party relationship, a subject matter, suitable
criteria, and a conclusion.
The Philippine Framework for assurance engagements is a standard that establishes basic
principles and essential procedures for the performance of assurance engagements.
A. Contains basic principles, essential procedures, and related guidance for the performance of
assurance engagements.
B. Defines and describes the elements and objectives of an assurance engagement, and
identifies engagements to which PSAs, PSREs, and PSAEs apply.
C. Provides a frame of references for CPAs in public practice when performing audits, reviews,
and compilations of historical financial information.
D. Establishes standards and provides procedural requirements for the performance of
assurance engagement. - ANSB. Defines and describes the elements and objectives of an
assurance engagement, and identifies engagements to which PSAs, PSREs, and PSAEs apply.
The independence auditor lends credibility to client financial statements by:
A. Stating in the auditor's management letter that the examination was made in accordance with
PSAs.
,B. Maintaining a clear-cut distinction between the managements and the auditor's
representations.
C. Attaching an auditor's opinion to the client's FSs.
D. Testifying under oath about client financial information. - ANSC. Attaching an auditor's
opinion to the client's FSs.
Assurance services can be best described as
A. Is broader than attestation but lesser in scope than an audit
B. Processes that measure and communicate financial data to intended users.
C. Independent professional services intended to enhance the credibility of information to meet
the needs of an intended user
D. Engagement is design to enable an independent practitioner to express an opinion as to the
fairness of historical financial information. - ANSC. Independent professional services intended
to enhance the credibility of information to meet the needs of an intended user
Practitioners who perform assurance engagements are governed by the following, except
A. Code of Ethics for Professional Accountants in the' Philippines
B. The Framework to Assurance Engagements
C. Philippines Standards on Quality Control
D. Philippine Financial Reporting Standards - ANSD. Philippine Financial Reporting Standards
The Philippine Standards on Assurance Engagements (PSAEs) are to be applied in
A. Assurance engagements dealing with subject matters other than historical financial
information.
B. Compilation engagements and agreements to apply agreed-upon procedures to information.
C. The audit or review of historical financial information.
D. Assurance engagements dealing with historical financial information. - ANSA. Assurance
engagements dealing with subject matters other than historical financial information.
Which of the following statements best describes assurance services?
, A. Independent professional services that are intended to enhance the credibility of information
to meet the needs of an Intended user
B. Services designed to express an opinion on the fairness of historical financial statements
based on the result of an audit.
C, The preparation of financial statements or the collection, classification, and summarization of
other financial information.
D. Services designed for the improvement of operations, resulting in better outcomes. - ANSA.
Independent professional services that are intended to enhance the credibility of information to
meet the needs of an Intended user
The risk that the information presented may; be materiality false and misleading is referred to as
the
A. Business risk
B. Information risk
C. Client risk
D. Risk assessment - ANSB. Information risk
Which of the following statements is/are correct?
I. Assurance engagement means an engagement in which a practitioner expresses a conclusion
designed to enhance the degree of confidence of the intended users other than the responsible
party about the outcome of the evaluation or measurement of a subject matter against criteria.
II. Assurance refers to the practitioner's satisfaction with the reliability of an assertion being
made by one party for use by another party
A. I only
B. Both I and II
C. II only
D. Neither I nor II - ANSB. Both I and II
Financial statements need to be prepared in accordance with one, or a combination of:
I. PSAs
II. IFRS
III. Other financial reporting framework
IV. GAAP in the Philippines
A. I, III and IV only
B. II & IV only
