CIPFA: A&A 2025/2026 Exam Questions
and Answers | A+ Score Assured
Outline the function of an assurance engagement - 🧠ANSWER ✔✔An
assurance engagement typically provides improved or additional
information that enhances stakeholders' confidence in an organisation /
process and may allow senior management to make better decisions.
List the tree parties of an assurance engagement - 🧠ANSWER ✔✔- The
responsible party: owners/ management
- The users: stakeholders
- The practitioner: the firm or individual who will conduct the assurance
work
,One of both of the RP / User may engage the practitioner
Define: Audit - 🧠ANSWER ✔✔The systematic process of obtaining and
then objectively evaluating the accounts or financial records of an
organisation
Define: Internal audit - 🧠ANSWER ✔✔An independent, objective assurance
and consulting activity designed to add value and improve an
organisation's operations.
It helps an organisation accomplish its objectives by bringing a systematic,
disciplined approach to evaluate and improve the effectiveness of risk
management, control and governance processes.
Define: Reasonable assurance - 🧠ANSWER ✔✔A high level of assurance
obtained through sufficient and appropriate audit evidence to reduce audit
risk (risk of an inappropriate opinion when the financial statements are
materially misstated) to an acceptably low level.
,Conclusion expressed positively (found to be the case). Opinion persuasive
but not conclusive.
Define: Limited assurance - 🧠ANSWER ✔✔A lower but meaningful level of
assurance that the risk of material misstatement has been reduced to an
acceptable level, enabling a conclusion to be expressed negatively (nothing
to indicate that something is not the case).
What is the purpose of an audit? - 🧠ANSWER ✔✔To enhance the degree
of confidence of intended users in the financial statements. This is
achieved by the expression of an opinion by the auditor on whether the
financial statements are prepared, in all material respects, in accordance
with an applicable financial reporting framework.
Distinguish between 'True' and 'Fair' - 🧠ANSWER ✔✔True
- Factually correct and prepared in accordance with applicable framework
- Free of material misstatement
Fair
- Faithful without bias
- Reflect the economic substance of transactions rather than legal form
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
, What legal requirements exist surrounding true and fair - 🧠ANSWER ✔✔-
Companies act 2006 states that a company's auditor must make a report to
the company's members on all annual accounts of the company,
expressing a true and fair opinion
- Government Resources and Accounts Act 2000
Outline functions auditors are not expected to do - 🧠ANSWER ✔✔- Correct
Financial statements
- Prevent fraud or error
- Detect all cases of fraud or error
The financial statements subject to audit are those of the entity, prepared
by management of the entity with oversight from those charged with
governance and does not relive them of their responsibilities.
Define: those charged with governance and management - 🧠ANSWER
✔✔Those charged with governance:
- The person or organisation responsible for overseeing the strategic
direction of the entity and obligations relating to accountability.
and Answers | A+ Score Assured
Outline the function of an assurance engagement - 🧠ANSWER ✔✔An
assurance engagement typically provides improved or additional
information that enhances stakeholders' confidence in an organisation /
process and may allow senior management to make better decisions.
List the tree parties of an assurance engagement - 🧠ANSWER ✔✔- The
responsible party: owners/ management
- The users: stakeholders
- The practitioner: the firm or individual who will conduct the assurance
work
,One of both of the RP / User may engage the practitioner
Define: Audit - 🧠ANSWER ✔✔The systematic process of obtaining and
then objectively evaluating the accounts or financial records of an
organisation
Define: Internal audit - 🧠ANSWER ✔✔An independent, objective assurance
and consulting activity designed to add value and improve an
organisation's operations.
It helps an organisation accomplish its objectives by bringing a systematic,
disciplined approach to evaluate and improve the effectiveness of risk
management, control and governance processes.
Define: Reasonable assurance - 🧠ANSWER ✔✔A high level of assurance
obtained through sufficient and appropriate audit evidence to reduce audit
risk (risk of an inappropriate opinion when the financial statements are
materially misstated) to an acceptably low level.
,Conclusion expressed positively (found to be the case). Opinion persuasive
but not conclusive.
Define: Limited assurance - 🧠ANSWER ✔✔A lower but meaningful level of
assurance that the risk of material misstatement has been reduced to an
acceptable level, enabling a conclusion to be expressed negatively (nothing
to indicate that something is not the case).
What is the purpose of an audit? - 🧠ANSWER ✔✔To enhance the degree
of confidence of intended users in the financial statements. This is
achieved by the expression of an opinion by the auditor on whether the
financial statements are prepared, in all material respects, in accordance
with an applicable financial reporting framework.
Distinguish between 'True' and 'Fair' - 🧠ANSWER ✔✔True
- Factually correct and prepared in accordance with applicable framework
- Free of material misstatement
Fair
- Faithful without bias
- Reflect the economic substance of transactions rather than legal form
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
, What legal requirements exist surrounding true and fair - 🧠ANSWER ✔✔-
Companies act 2006 states that a company's auditor must make a report to
the company's members on all annual accounts of the company,
expressing a true and fair opinion
- Government Resources and Accounts Act 2000
Outline functions auditors are not expected to do - 🧠ANSWER ✔✔- Correct
Financial statements
- Prevent fraud or error
- Detect all cases of fraud or error
The financial statements subject to audit are those of the entity, prepared
by management of the entity with oversight from those charged with
governance and does not relive them of their responsibilities.
Define: those charged with governance and management - 🧠ANSWER
✔✔Those charged with governance:
- The person or organisation responsible for overseeing the strategic
direction of the entity and obligations relating to accountability.
