AUDITING & ASSURANCE SERVICES 4TH
CANADIAN EDITION COMPREHENSIVE
EXAM 2026 SOLVED QUESTIONS AND
SOLUTIONS GRADED A+
◉ b. Completeness
Answer: An auditor selected items for test counts from the client's
warehouse during the physical inventory observation. The auditor
then traced these test counts into the detailed inventory listing that
agreed to the financial statements. This procedure most likely
provided evidence concerning management's assertion of
a. Rights and obligations.
b. Completeness.
c. Existence.
d. Valuation.
◉ c. Presentation and disclosure
,Answer: An auditor's purpose in auditing the information contained
in the pension footnote most likely is to obtain evidence concerning
management's assertion about
a. Rights and obligations.
b. Existence.
c. Presentation and disclosure.
d. Valuation.
◉ a. Performance
Answer: Which of the following categories of principles is most
closely related to gathering audit evidence?
a. Performance.
b. Reasonable assurance.
c. Reporting.
,d. Responsibilities.
◉ d. Professional Judgement
Answer: Which of the following is not related to ethical
requirements of auditors?
a. Due care.
b. Independence in appearance.
c. Independence in fact.
d. Professional judgment.
◉ b. Standards within a system of quality control
Answer: One of an accounting firm's basic objectives is to provide
professional services that conform to professional standards.
Reasonable assurance of achieving this objective can be obtained by
following
a. Generally accepted auditing standards.
b. Standards within a system of quality control.
, c. Generally accepted accounting principles.
d. International auditing standards.
◉ c. Critically assessing verbal evidence received from the entity's
management
Answer: Which of the following best demonstrates the concept of
professional skepticism?
a. Relying more extensively on external evidence rather than internal
evidence.
b. Focusing on items that have a more significant quantitative effect
on the entity's financial statements.
c. Critically assessing verbal evidence received from the entity's
management.
d. Evaluating potential financial interests held by auditors in the
client
◉ a. To determine the nature, timing, and extent of substantive
procedures to be performed.
CANADIAN EDITION COMPREHENSIVE
EXAM 2026 SOLVED QUESTIONS AND
SOLUTIONS GRADED A+
◉ b. Completeness
Answer: An auditor selected items for test counts from the client's
warehouse during the physical inventory observation. The auditor
then traced these test counts into the detailed inventory listing that
agreed to the financial statements. This procedure most likely
provided evidence concerning management's assertion of
a. Rights and obligations.
b. Completeness.
c. Existence.
d. Valuation.
◉ c. Presentation and disclosure
,Answer: An auditor's purpose in auditing the information contained
in the pension footnote most likely is to obtain evidence concerning
management's assertion about
a. Rights and obligations.
b. Existence.
c. Presentation and disclosure.
d. Valuation.
◉ a. Performance
Answer: Which of the following categories of principles is most
closely related to gathering audit evidence?
a. Performance.
b. Reasonable assurance.
c. Reporting.
,d. Responsibilities.
◉ d. Professional Judgement
Answer: Which of the following is not related to ethical
requirements of auditors?
a. Due care.
b. Independence in appearance.
c. Independence in fact.
d. Professional judgment.
◉ b. Standards within a system of quality control
Answer: One of an accounting firm's basic objectives is to provide
professional services that conform to professional standards.
Reasonable assurance of achieving this objective can be obtained by
following
a. Generally accepted auditing standards.
b. Standards within a system of quality control.
, c. Generally accepted accounting principles.
d. International auditing standards.
◉ c. Critically assessing verbal evidence received from the entity's
management
Answer: Which of the following best demonstrates the concept of
professional skepticism?
a. Relying more extensively on external evidence rather than internal
evidence.
b. Focusing on items that have a more significant quantitative effect
on the entity's financial statements.
c. Critically assessing verbal evidence received from the entity's
management.
d. Evaluating potential financial interests held by auditors in the
client
◉ a. To determine the nature, timing, and extent of substantive
procedures to be performed.
