AUDITING AND ASSURANCE SERVICES
EXAM SCRIPT COMPLETE QUESTIONS AND
ANSWERS GRADED A+
●● Assurance services
Answer: Independent professional services that improve the quality of
information, or its context, for decision makers.
●● Attestation
Answer: A professional service resulting in a report on an assertion (or
assertions) about subject matter that is the responsibility of another
party.
●● Attestation engagement
Answer: An engagement where a practitioner is requested to examine
whether management's assertions about some type of subject matter can
be relied upon.
●● Auditing
Answer: The systematic process of objectively obtaining and evaluating
evidence regarding assertions about economic actions and events to
ascertain the degree of correspondence between the assertions and
established criteria and communicating the results to interested users.
, ●● Business risk
Answer: Those factors, events, and conditions that could prevent the
organization from achieving its business objectives.
●● Completeness
Answer: Management assertion that all of the transactions, events,
assets, liabilities, equity interests, and other disclosures that should have
been recorded in the financial statements have been recorded.
●● Cutoff
Answer: Management assertion that refers to accounting for revenue,
expense, and other transactions in the proper period. The cutoff date
generally refers to the audit client's year-end balance sheet date.
●● Existence
Answer: Management assertion that all assets, liabilities, and equity
interests do actually exist.
●● Financial reporting
Answer: Process of providing statements of financial position (balance
sheets), results of operations (income statements, statements of
shareholders' equity, and statements of comprehensive income), changes
in cash flows (statements of cash flows), and accompanying disclosures
to outside decision makers who do not have access to management's
EXAM SCRIPT COMPLETE QUESTIONS AND
ANSWERS GRADED A+
●● Assurance services
Answer: Independent professional services that improve the quality of
information, or its context, for decision makers.
●● Attestation
Answer: A professional service resulting in a report on an assertion (or
assertions) about subject matter that is the responsibility of another
party.
●● Attestation engagement
Answer: An engagement where a practitioner is requested to examine
whether management's assertions about some type of subject matter can
be relied upon.
●● Auditing
Answer: The systematic process of objectively obtaining and evaluating
evidence regarding assertions about economic actions and events to
ascertain the degree of correspondence between the assertions and
established criteria and communicating the results to interested users.
, ●● Business risk
Answer: Those factors, events, and conditions that could prevent the
organization from achieving its business objectives.
●● Completeness
Answer: Management assertion that all of the transactions, events,
assets, liabilities, equity interests, and other disclosures that should have
been recorded in the financial statements have been recorded.
●● Cutoff
Answer: Management assertion that refers to accounting for revenue,
expense, and other transactions in the proper period. The cutoff date
generally refers to the audit client's year-end balance sheet date.
●● Existence
Answer: Management assertion that all assets, liabilities, and equity
interests do actually exist.
●● Financial reporting
Answer: Process of providing statements of financial position (balance
sheets), results of operations (income statements, statements of
shareholders' equity, and statements of comprehensive income), changes
in cash flows (statements of cash flows), and accompanying disclosures
to outside decision makers who do not have access to management's
