Audit and Assurance (CIPFA) – 60 Exam Questions with Verified Answers – Ethics, ISAs, Governance – 2025/2026

This document presents 60 expertly verified questions and answers for the CIPFA Audit and Assurance module, designed for the 2025/2026 academic year. It is structured to help students grasp essential theoretical and practical knowledge across auditing and assurance disciplines, with a focus on professional standards, ethical compliance, and public sector governance. Topics include: Core audit principles: assurance engagement, external and internal audit, stewardship, and types of opinions (positive, negative) Ethical standards: threats to independence, auditor conduct, conflict of interest, ES1 & ES2, long association, audit partner rotation Audit regulation: International Standards on Auditing (ISA), ISQC 1, FRC, IAASB, PSIAS, SOPP, Proceeds of Crime Act Governance and reporting: role of audit committees, UK Corporate Governance Code, financial reporting frameworks, acceptance and resignation procedures Public sector auditing: value for money (VFM), Practice Notes (PN10 & PN11), responsibilities of management and auditors, rights of access, civil and criminal liabilities This resource is highly valuable for: CIPFA students preparing for exams in the Audit and Assurance stream Public sector audit trainees and finance professionals working under UK and international frameworks ACCA, ICAEW, or CIMA candidates seeking supplementary practice material aligned with UK audit standards Tutors and lecturers creating formative or summative assessments based on current ISA and FRC guidelines Every question is paired with a direct, exam-focused answer, ensuring alignment with both exam structure (objective and scenario-based questions) and professional expectations. Keywords: CIPFA audit, assurance engagement, external audit, ISAs, ISA 210, ISQC, FRC, IAASB, PSIAS, SOPP, ethical threats, ES1, ES2, auditor independence, public sector audit, corporate governance, UK code, audit committees, VFM, management threats, Proceeds of Crime Act, audit opinion, financial reporting framework, audit resignation, internal controls, statutory audit, audit acceptance