ACA Assurance EXAM, comprehensive
questions and verified answers QUESTIONS
WITH ACCURATE ANSWERS | GET IT RIGHT
|2025\2026!
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Terms in this set (94)
5 key elements of audit 1. 3 party involvement
2. subject matter (f/s)
3. suitable criteria (e.g. UK CGC)
4. evidence
5. written report
ISA 200 - what are the objectives of - obtain reasonable assurance f/s are free from
auditors? material misstatement (fraud or error)
- express opinion whether f/s prepared in
accordance w/ financial reporting framework
Exemption from statutory audit - CA 2006 exempts small p. ltd. if 2/3:
-> 50 employees or less
-> turnover £10.2m or less
-> gross assets £5.1m or less
, Auditor requirements basic:
- employment by firm controlled by qualified
persons
- CA2006 no officers/employees of company or
partner of above
qualified auditors:
- membership of recognised supervisory body
Money laundering check (client due - req. per. Money Laundering Regulations 2007
diligence) - client id docs retained 5 yrs
ISA 210: mandatory contents of - auditor's and management's responsibilities
engagement letter (6) - scope of work (stat/non-stat)
- form of reports (reasonable/limited)
- written confirmation of firm's acceptance of
engagement
- level of access to books & records (full = audit &
limited = review engagement)
- reporting framework
ISA 210: optional contents of - limitations of engagement
engagement letter (5) - confidentiality/restricted use of report
- reliance on internal controls
- basis of fee calculations
- restrictions on auditor's liability
Key components of audit strategy - understanding the entity and its environment
- materiality
- risk assessment
- nature, extent & timing of audit procedures
- direction, supervision & review of work
questions and verified answers QUESTIONS
WITH ACCURATE ANSWERS | GET IT RIGHT
|2025\2026!
Leave the first rating
Save
Students also studied
Terms in this set (94)
5 key elements of audit 1. 3 party involvement
2. subject matter (f/s)
3. suitable criteria (e.g. UK CGC)
4. evidence
5. written report
ISA 200 - what are the objectives of - obtain reasonable assurance f/s are free from
auditors? material misstatement (fraud or error)
- express opinion whether f/s prepared in
accordance w/ financial reporting framework
Exemption from statutory audit - CA 2006 exempts small p. ltd. if 2/3:
-> 50 employees or less
-> turnover £10.2m or less
-> gross assets £5.1m or less
, Auditor requirements basic:
- employment by firm controlled by qualified
persons
- CA2006 no officers/employees of company or
partner of above
qualified auditors:
- membership of recognised supervisory body
Money laundering check (client due - req. per. Money Laundering Regulations 2007
diligence) - client id docs retained 5 yrs
ISA 210: mandatory contents of - auditor's and management's responsibilities
engagement letter (6) - scope of work (stat/non-stat)
- form of reports (reasonable/limited)
- written confirmation of firm's acceptance of
engagement
- level of access to books & records (full = audit &
limited = review engagement)
- reporting framework
ISA 210: optional contents of - limitations of engagement
engagement letter (5) - confidentiality/restricted use of report
- reliance on internal controls
- basis of fee calculations
- restrictions on auditor's liability
Key components of audit strategy - understanding the entity and its environment
- materiality
- risk assessment
- nature, extent & timing of audit procedures
- direction, supervision & review of work
