ACCA - Audit and Assurance (AA) Exam (Latest 2026/2027 Update) Questions with Verified Answers |100% Correct.

ACCA - Audit and Assurance (AA) Exam
(Latest 2026/2027 Update) Questions
with Verified Answers |100% Correct.
Question:

Accountability?
Answer:
The quality or state of being accountable; that is, being required or
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expected to justify actions and decisions. It suggests an application or
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willingness to accept responsibility for one's actions.
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Question:
Stewardship?

Answer:

Refers to the duties and obligations of a person who manages another
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persons property.
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Question:

Agents?

Answer:

,Are people who are employed or used to provide a particular service. In
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the case of a company, the people being used to provide the service or
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managing the business also have the second role of trying to maximise
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their personal wealth in their own right.
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Question:

Assurance engagement? i,-




Answer:

A practitioner that aims to obtain sufficient appropriate evidence in order
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to express a conclusion designed to enhance the degree of confidence of
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the intended users other than the responsible party about the outcome of
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the measurement or evaluation of an underlying subject matter against
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criteria.




Question:
Elements of an assurance engagement?
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Answer:
A three party relationship. The three parties are the intended user, the
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responsible party and the practitioner. i,- i,- i,- i,- i,-




A subject matter, where the data to be evaluated has been prepared by
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the responsible party. It can take many forms, including the financial
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performance, non-financial performance, process and behaviour.
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Suitable criteria, where the subject matter is evaluated or measured
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against criteria in order to reach an opinion.
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,Evidence, where sufficient appropriate evidence needs to be gathered to
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support the required level of assurance.
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An assurance report, where a written report containing the practitioners
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opinion is issued to the intended user in the form appropriate to
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reasonable assurance engagement or a limited assurance engagement.
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Question:
Intended users? i,-




Answer:
The individual or organisation, or group thereof that the practitioner
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expects will use the assurance repot.
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Question:

Objective of an external audit? i,- i,- i,- i,-




Answer:
The objective of an audit of financial statements is to enable the auditor
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to express an opinion on whether the financial statements are prepared,
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in all material respects, in accordance with applicable financial reporting
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framework. An audit of financial statements is an example of an assurance
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engagement.




Question:
Advantages of a non-statutory audit? i,- i,- i,- i,-

, Answer:
It can provide a means of settling accounts between the partners.
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Where audited accounts are available this may make the accounts more
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acceptable to taxation authorities. i,- i,- i,- i,-




The sale of the business or the negotiation of loan or overdraft facilities
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may be facilitated if the firm is able to produce audited accounts.
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An audit on behalf of a sleeping partner is useful since generally such a
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personal have you have a means of checking the accounts of the business
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or confirming the share of profits due to them.
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Question:

Reasonable party? i,-




Answer:
The party responsible for the underlying subject matter.
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Question:

Practitioner?

Answer:
The individual conducting the engagement which will usually be the
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engagement partner or other members of the engagement team, or as i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-


applicable, the firm. i,- i,-