ACCA - Audit and Assurance (AA)
2025/2026 Exam Questions and Verified
Answers | Already Graded A+
Objective of an external audit - 🧠ANSWER ✔✔The objective of an audit of
financial statements is to enable the auditor to express an opinion on
whether the financial statements are prepared, in all material respects, in
accordance with applicable financial reporting framework. An audit of
financial statements is an example of an assurance engagement.
Advantages of a non-statutory audit - 🧠ANSWER ✔✔It can provide a
means of settling accounts between the partners.
Where audited accounts are available this may make the accounts more
acceptable to taxation authorities.
,The sale of the business or the negotiation of loan or overdraft facilities
may be facilitated if the firm is able to produce audited accounts.
An audit on behalf of a sleeping partner is useful since generally such a
personal have you have a means of checking the accounts of the business
or confirming the share of profits due to them.
Accountability - 🧠ANSWER ✔✔The quality or state of being accountable;
that is, being required or expected to justify actions and decisions. It
suggests an application or willingness to accept responsibility for one's
actions.
Stewardship - 🧠ANSWER ✔✔Refers to the duties and obligations of a
person who manages another persons property.
Agents - 🧠ANSWER ✔✔Are people who are employed or used to provide a
particular service. In the case of a company, the people being used to
provide the service or managing the business also have the second role of
trying to maximise their personal wealth in their own right.
Assurance engagement - 🧠ANSWER ✔✔A practitioner that aims to obtain
sufficient appropriate evidence in order to express a conclusion designed to
enhance the degree of confidence of the intended users other than the
,responsible party about the outcome of the measurement or evaluation of
an underlying subject matter against criteria.
Elements of an assurance engagement - 🧠ANSWER ✔✔A three party
relationship. The three parties are the intended user, the responsible party
and the practitioner.
A subject matter, where the data to be evaluated has been prepared by the
responsible party. It can take many forms, including the financial
performance, non-financial performance, process and behaviour.
Suitable criteria, where the subject matter is evaluated or measured against
criteria in order to reach an opinion.
Evidence, where sufficient appropriate evidence needs to be gathered to
support the required level of assurance.
An assurance report, where a written report containing the practitioners
opinion is issued to the intended user in the form appropriate to reasonable
assurance engagement or a limited assurance engagement.
Intended users - 🧠ANSWER ✔✔The individual or organisation, or group
thereof that the practitioner expects will use the assurance repot.
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
, Reasonable party - 🧠ANSWER ✔✔The party responsible for the underlying
subject matter.
Practitioner - 🧠ANSWER ✔✔The individual conducting the engagement
which will usually be the engagement partner or other members of the
engagement team, or as applicable, the firm.
Objective of a reasonable assurance engagement - 🧠ANSWER ✔✔Is a
reduction in assurance engagement risk to an acceptably low level in the
circumstances of engagement as the basis for the insurance practitioners
conclusion. The conclusion would usually be expressed in a positive forum.
Objective of a review engagement - 🧠ANSWER ✔✔Is obtain limited
assurance about whether the subject matter information is free from
material misstatement.
An attestation engagement - 🧠ANSWER ✔✔Where underlying subject
matter has not been measured or evaluated by the practitioner, and the
practitioner concludes whether or not the subject matter information is free
from material misstatement.
2025/2026 Exam Questions and Verified
Answers | Already Graded A+
Objective of an external audit - 🧠ANSWER ✔✔The objective of an audit of
financial statements is to enable the auditor to express an opinion on
whether the financial statements are prepared, in all material respects, in
accordance with applicable financial reporting framework. An audit of
financial statements is an example of an assurance engagement.
Advantages of a non-statutory audit - 🧠ANSWER ✔✔It can provide a
means of settling accounts between the partners.
Where audited accounts are available this may make the accounts more
acceptable to taxation authorities.
,The sale of the business or the negotiation of loan or overdraft facilities
may be facilitated if the firm is able to produce audited accounts.
An audit on behalf of a sleeping partner is useful since generally such a
personal have you have a means of checking the accounts of the business
or confirming the share of profits due to them.
Accountability - 🧠ANSWER ✔✔The quality or state of being accountable;
that is, being required or expected to justify actions and decisions. It
suggests an application or willingness to accept responsibility for one's
actions.
Stewardship - 🧠ANSWER ✔✔Refers to the duties and obligations of a
person who manages another persons property.
Agents - 🧠ANSWER ✔✔Are people who are employed or used to provide a
particular service. In the case of a company, the people being used to
provide the service or managing the business also have the second role of
trying to maximise their personal wealth in their own right.
Assurance engagement - 🧠ANSWER ✔✔A practitioner that aims to obtain
sufficient appropriate evidence in order to express a conclusion designed to
enhance the degree of confidence of the intended users other than the
,responsible party about the outcome of the measurement or evaluation of
an underlying subject matter against criteria.
Elements of an assurance engagement - 🧠ANSWER ✔✔A three party
relationship. The three parties are the intended user, the responsible party
and the practitioner.
A subject matter, where the data to be evaluated has been prepared by the
responsible party. It can take many forms, including the financial
performance, non-financial performance, process and behaviour.
Suitable criteria, where the subject matter is evaluated or measured against
criteria in order to reach an opinion.
Evidence, where sufficient appropriate evidence needs to be gathered to
support the required level of assurance.
An assurance report, where a written report containing the practitioners
opinion is issued to the intended user in the form appropriate to reasonable
assurance engagement or a limited assurance engagement.
Intended users - 🧠ANSWER ✔✔The individual or organisation, or group
thereof that the practitioner expects will use the assurance repot.
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
, Reasonable party - 🧠ANSWER ✔✔The party responsible for the underlying
subject matter.
Practitioner - 🧠ANSWER ✔✔The individual conducting the engagement
which will usually be the engagement partner or other members of the
engagement team, or as applicable, the firm.
Objective of a reasonable assurance engagement - 🧠ANSWER ✔✔Is a
reduction in assurance engagement risk to an acceptably low level in the
circumstances of engagement as the basis for the insurance practitioners
conclusion. The conclusion would usually be expressed in a positive forum.
Objective of a review engagement - 🧠ANSWER ✔✔Is obtain limited
assurance about whether the subject matter information is free from
material misstatement.
An attestation engagement - 🧠ANSWER ✔✔Where underlying subject
matter has not been measured or evaluated by the practitioner, and the
practitioner concludes whether or not the subject matter information is free
from material misstatement.
