Auditing and Assurance Module A
2025/2026 Exam Questions with 100%
Correct Answers | Latest Update
Nonaudit clients sometime engage public accounting firms to perform a
specified set of audit procedures rather than a complete audit of the
financial statements taken as a whole. This type of engagement is called - -
🧠ANSWER ✔✔Agreed-upon procedures Engagement.
Even though Sarbanes-Oxley only applies to publicly traded companies,
private companies and organizations may request that public accounting
firms attest to the effectiveness of their internal controls. Several conditions
must be met before a public accounting firm can undertake such an
engagement. Which of the following is NOT one of the necessary
, conditions? - 🧠ANSWER ✔✔Management's evaluation of control is to be
supported by an internal audit review.
Which of the following statements is true concerning a compliance audit? -
🧠ANSWER ✔✔Materiality is difficult to measure in a compliance audit.
A review of unaudited financial statements consists of: - 🧠ANSWER ✔✔1.
Conducting Inquiry of Management
2. Performing Analytical Procedures
3. Obtaining a Management Representation Letter
A compilation report should include all of the following EXCEPT: -
🧠ANSWER ✔✔A statement that adequate disclosure has been made
concerning accounting policy and practice.....there is no requirement to
comment on footnotes that are included with the financial statements.
Which of the following statements is true concerning interim financial
information? - 🧠ANSWER ✔✔The accountant needs to obtain sufficient
knowledge of the entity's business and industry before undertaking an
engagement on interim financial information.
According to AU 915, "Reports on Application of Requirements of an
Appropriate Financial Reporting Framework", which of the following is NOT
2025/2026 Exam Questions with 100%
Correct Answers | Latest Update
Nonaudit clients sometime engage public accounting firms to perform a
specified set of audit procedures rather than a complete audit of the
financial statements taken as a whole. This type of engagement is called - -
🧠ANSWER ✔✔Agreed-upon procedures Engagement.
Even though Sarbanes-Oxley only applies to publicly traded companies,
private companies and organizations may request that public accounting
firms attest to the effectiveness of their internal controls. Several conditions
must be met before a public accounting firm can undertake such an
engagement. Which of the following is NOT one of the necessary
, conditions? - 🧠ANSWER ✔✔Management's evaluation of control is to be
supported by an internal audit review.
Which of the following statements is true concerning a compliance audit? -
🧠ANSWER ✔✔Materiality is difficult to measure in a compliance audit.
A review of unaudited financial statements consists of: - 🧠ANSWER ✔✔1.
Conducting Inquiry of Management
2. Performing Analytical Procedures
3. Obtaining a Management Representation Letter
A compilation report should include all of the following EXCEPT: -
🧠ANSWER ✔✔A statement that adequate disclosure has been made
concerning accounting policy and practice.....there is no requirement to
comment on footnotes that are included with the financial statements.
Which of the following statements is true concerning interim financial
information? - 🧠ANSWER ✔✔The accountant needs to obtain sufficient
knowledge of the entity's business and industry before undertaking an
engagement on interim financial information.
According to AU 915, "Reports on Application of Requirements of an
Appropriate Financial Reporting Framework", which of the following is NOT
