AUDITING THEORY QUESTIONS AND
CORRECT ANSWERS
Society has attached a special meaning to the term "professional". A professional is
a. someone who has passed a qualifying exam to enter the job market
b. a person who is expected to conduct himself or herself at a higher level than the requirements of
society's laws or regulations.
c. Any person who receives pay for services performed
d. Someone who has both an education in the trade and on the job experience received under an
experienced supervisor. ANSW✅✅b. a person who is expected to conduct himself or herself at a
higher level than the requirements of society's laws or regulations.
Which of the following is not an assurance engagement?
a. Compilation
b. Financial statements audit
c. Information reliability services
d. Reviews of prospective financial statements ANSW✅✅a. Compilation
Non-assurance engagements include all of the following except
a. agreed-upon procedures
b. management consulting services
c. preparing of tax returns where no conclusion is expressed
d. compliance audit ANSW✅✅d. compliance audit
Independence auditing can best be described as
a. a branch of accounting
b. a discipline that attests to the results of accounting and other functional operations and data
c. a professional activity that measures and communicates financial and business data
d. a regulatory function that prevents the issuance of improper financial information ANSW✅✅c.
a professional activity that measures and communicates financial and business data
Which of the following professional services would be considered an attestation engagement?
CORRECT ANSWERS
Society has attached a special meaning to the term "professional". A professional is
a. someone who has passed a qualifying exam to enter the job market
b. a person who is expected to conduct himself or herself at a higher level than the requirements of
society's laws or regulations.
c. Any person who receives pay for services performed
d. Someone who has both an education in the trade and on the job experience received under an
experienced supervisor. ANSW✅✅b. a person who is expected to conduct himself or herself at a
higher level than the requirements of society's laws or regulations.
Which of the following is not an assurance engagement?
a. Compilation
b. Financial statements audit
c. Information reliability services
d. Reviews of prospective financial statements ANSW✅✅a. Compilation
Non-assurance engagements include all of the following except
a. agreed-upon procedures
b. management consulting services
c. preparing of tax returns where no conclusion is expressed
d. compliance audit ANSW✅✅d. compliance audit
Independence auditing can best be described as
a. a branch of accounting
b. a discipline that attests to the results of accounting and other functional operations and data
c. a professional activity that measures and communicates financial and business data
d. a regulatory function that prevents the issuance of improper financial information ANSW✅✅c.
a professional activity that measures and communicates financial and business data
Which of the following professional services would be considered an attestation engagement?
