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

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

what is the purpose of an assurance engagement??
i,- i,- i,- i,- i,- i,- i,-




Answer:
to increase the confidence of the user in the subject matter being relied
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-


upon




Question:

what is the acronym for the elements of an assurance engagement??
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-




Answer:

CREST




Question:

detail the elements of an assurance engagement?
i,- i,- i,- i,- i,- i,-




Answer:

C = suitable CRITERIA
i,- i,- i,- i,-




R = written assurance REPORT
i,- i,- i,- i,-

,E = sufficient and appropriate EVIDENCE
i,- i,- i,- i,- i,-




S = SUBJECT matter
i,- i,- i,- i,-




T = THREE parties
i,- i,- i,-




Question:

explain 'criteria' as an element of an assurance engagement?
i,- i,- i,- i,- i,- i,- i,- i,-




Answer:

the subject matter is judged against suitable criteria e.g. IFRS
i,- i,- i,- i,- i,- i,- i,- i,- i,-




Question:

explain 'report' as an element of an assurance engagement?
i,- i,- i,- i,- i,- i,- i,- i,-




Answer:
a report will be written, which expresses a conclusion or opinion
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-




Question:

explain 'evidence' as an element of an assurance engagement?
i,- i,- i,- i,- i,- i,- i,- i,-




Answer:

evidence is gathered to provide a basis for the conclusion
i,- i,- i,- i,- i,- i,- i,- i,- i,-

,Question:
explain 'subject matter' as an element of an assurance engagement?
i,- i,- i,- i,- i,- i,- i,- i,- i,-




Answer:

this is the information being examined e.g. the FS
i,- i,- i,- i,- i,- i,- i,- i,-




Question:
explain 'three parties' as an element of an assurance engagement?
i,- i,- i,- i,- i,- i,- i,- i,- i,-




Answer:

there are three parties who would use an assurance engagement: the
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-


intended user, responsible party and the practitioner
i,- i,- i,- i,- i,- i,-




Question:

relate the elements of an assurance engagement to an audit of financial
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-


statements?
Answer:

criteria = accounting standards,
i,- i,- i,-




report = audit report
i,- i,- i,-




evidence = by testing i,- i,- i,- i,-




subject matter = financial statements
i,- i,- i,- i,-




three parties = shareholders, auditor and directors
i,- i,- i,- i,- i,- i,-

, Question:

what is an intended user??
i,- i,- i,- i,-




Answer:

the user of the subject matter
i,- i,- i,- i,- i,-




Question:

what is a practitioner??
i,- i,- i,-




Answer:
they perform an independent examination of the subject matter against
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-


the suitable criteria and provides a written assurance report
i,- i,- i,- i,- i,- i,- i,- i,-




Question:
what is a responsible party??
i,- i,- i,- i,-




Answer:
preparer of the subject matter
i,- i,- i,- i,-




Question:

the Framework only permits two types of assurance engagement to be
i,- i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-


performed; what are they?? i,- i,- i,-