ACA – Assurance Exam Questions and Answers 100% Pass

ACA – Assurance Exam Questions and Answers 100% Pass What are the five elements of an assurnace engagement? - Answer- Criteria, Report, Evidence, Subject matter, Thrid Patry Relationship Who is a practitioner? - Answer- The person or party carrying out the assurance engagement. What are the two types of assurnace engagement identified under the international framework for assurnace engagement? - Answer- 1. Resaonable Assurance 2. Limited Assurance What constitues a reasonable assurance? - Answer- A high level of assurance, suggests that the engagement risk has been reduced to an acceptably low level, which allows a conclusion to be expressed positively. What constitues a limited assurance? - Answer- A low level of assurance, suggest that the engament risk has been reduced to an acceptable level, which allows the the conclusion to be expressed negatively. What kind of evidence do we need to gather for a reasonable assurance level engagment? - Answer- Sufficent (enough in volume) and Appropirate(enough in quality). What kind of evidence do we need to gather for a limited level of assurnace level engagement? - Answer- The evidence is typiaclly limited, for example by simply conducting analytical procedures. Would an assessment of the effectiveness of internal controls only bring us a reasonable assurance? - Answer- No, because internal controls are based on internal procedures. There is no guantee that outside of our inspection the controls are working effectively. What does is typicaly mean that the financial statements present a true and fair view? - Answer- It means that the information itself is factual and correct(true), and that the information is free from bias and discrimiation (fair). Fairness also imply that the transcations reflects the commerical substance (ie what they do) of the business. Are there any legal definitions for True and Fair? - Answer- No, there are not. What are the legal and professional reuqiremnets to be an auditor? - Answer- Legal Requirements (Company Acts 2006): The auditor must hold appropirate qualification and be a member of a recongised supervisory body (RSB) and eligible to sign audit reports. Professional Requirment: Be qualified by a recongised qualifying body (RQ