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

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

What is an assurance engagement??
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Answer:

An engagement in which a practitioner obtains sufficient appropriate
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evidence in order to express a conclusion designed to enhance the degree
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of confidence of the intended users other than the responsible party
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about the outcome of the evaluation or measurement of a subject matter
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against criteria i,-




[International Framework for Assurance Engagements, 7]
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Question:
Elements of an Assurance Engagement?
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Answer:
(1) Three party involvement:
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Practitioner - the reviewer of the subject matter who provides the
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assurance
Intended users - the people using the subject matter to make economic
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decisions

Responsible party - the party responsible for preparing the subject matter
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,(2) Appropriate subject matter - The information subject to examination
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by the practitioner
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(3) Suitable criteria - The criteria against which the subject matter is
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evaluated, i.e. standards, guidance, laws and regulations
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(4) Sufficient appropriate evidence - needed to provide a basis for the
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opinion/conclusion
(5) Written assurance report - The output of the assurance engagement
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expressing a conclusion/opinion about the subject matter
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[International Framework for Assurance Engagements, 20] i,- i,- i,- i,- i,-




Question:
Reasonable assurance engagements? i,- i,-




Answer:

The practitioner:
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Gathers sufficient appropriate evidence to be able to draw reasonable
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conclusions
- Performs very thorough procedures to obtain sufficient appropriate
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evidence including tests of controls and substantive procedures
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- Concludes that the subject matter conforms in all material respects with
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identified suitable criteria i,- i,-




- Gives a positively worded assurance opinion
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- Gives a high level of assurance e.g. an audit report for a company
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,Question:
Limited assurance engagements?
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Answer:

The practitioner:
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- Gathers sufficient appropriate
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evidence to be able to draw limited conclusions
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- Performs significantly fewer procedures, mainly enquiries and analytical
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procedures

- Concludes that the subject matter, with respect to identified suitable
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criteria, is plausible in the
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circumstances

- Gives a negatively worded assurance conclusion
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- Gives a moderate or lower level of assurance than that of an audit
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Question:
External audit engagements?
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Answer:
An external audit is an example of a reasonable assurance engagement
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ISA 200 Overall Objectives of the Independent Auditor and the Conduct of
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an Audit in Accordance with International Standards on Auditing states
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the purpose of an external audit engagement is to 'enhance the degree of
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confidence of intended users in the financial statements
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, This is achieved by the auditor expressing an opinion on whether the
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financial statements: i,-




- Give a true and fair view (or present fairly in all material respects)
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- Are prepared, in all material respects, in accordance with an applicable
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financial reporting framework i,- i,-




[ISA 200, 3] i,- i,-




Question:
Objectives of the auditor? i,- i,- i,-




Answer:
- Obtain reasonable assurance about whether the financial statements as
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a whole are free from material misstatement, whether due to fraud or error
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- Express an opinion on whether the financial statements are prepared, in
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all material respects, in accordance with an applicable financial reporting
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framework
- Report on the financial statements, and communicate as required by
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ISAs, in accordance with the auditor's findings
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[ISA 200, 11]i,- i,-




Question:
Benefits of an audit (HIRED)? i,- i,- i,- i,-




Answer: