ACA Assurance.pdf file:///C:/Users/HP/Desktop/New%20folder/ACA%20Assurance
ACA Assurance Questions & Answers
1. 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
2. ISA 200 - what are the objectives of auditors?: - obtain reasonable assurance f/s
are free from material misstatement (fraud or error)
- express opinion whether f/s prepared in accordance w/ financial reporting frame-
work
3. 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
4. Auditor requirements: basic:
- employment by firm controlled by qualified persons
1/
1 of 21 12/16/2024, 5:01
,ACA Assurance.pdf file:///C:/Users/HP/Desktop/New%20folder/ACA%20Assurance
- CA2006 no officers/employees of company or partner of above
qualified auditors:
- membership of recognised supervisory body
5. Money laundering check (client due diligence): - req. per. Money Laundering
Regulations 2007
- client id docs retained 5 yrs
6. ISA 210: mandatory contents of engagement letter (6): - auditor's and man-
agement's responsibilities
- 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
7. ISA 210: optional contents of engagement letter (5): - limitations of engage-
ment
- confidentiality/restricted use of report
- reliance on internal controls
- basis of fee calculations
2/
2 of 21 12/16/2024, 5:01
,ACA Assurance.pdf file:///C:/Users/HP/Desktop/New%20folder/ACA%20Assurance
- restrictions on auditor's liability
8. Key components of audit strategy: - understanding the entity and its environ-
ment
- materiality
- risk assessment
3/
3 of 21 12/16/2024, 5:01
ACA Assurance Questions & Answers
1. 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
2. ISA 200 - what are the objectives of auditors?: - obtain reasonable assurance f/s
are free from material misstatement (fraud or error)
- express opinion whether f/s prepared in accordance w/ financial reporting frame-
work
3. 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
4. Auditor requirements: basic:
- employment by firm controlled by qualified persons
1/
1 of 21 12/16/2024, 5:01
,ACA Assurance.pdf file:///C:/Users/HP/Desktop/New%20folder/ACA%20Assurance
- CA2006 no officers/employees of company or partner of above
qualified auditors:
- membership of recognised supervisory body
5. Money laundering check (client due diligence): - req. per. Money Laundering
Regulations 2007
- client id docs retained 5 yrs
6. ISA 210: mandatory contents of engagement letter (6): - auditor's and man-
agement's responsibilities
- 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
7. ISA 210: optional contents of engagement letter (5): - limitations of engage-
ment
- confidentiality/restricted use of report
- reliance on internal controls
- basis of fee calculations
2/
2 of 21 12/16/2024, 5:01
,ACA Assurance.pdf file:///C:/Users/HP/Desktop/New%20folder/ACA%20Assurance
- restrictions on auditor's liability
8. Key components of audit strategy: - understanding the entity and its environ-
ment
- materiality
- risk assessment
3/
3 of 21 12/16/2024, 5:01
