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Introduction To Assurance Engagements: Review Questions
Introduction To Assurance Engagements: Review Questions
Review Questions
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c
a
d
d
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d
c
d
d
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d
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c
13. d
14. c
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Case 1. (a) The purpose of CPA reporting on internal control is to provide assurance
about whether managements assertion about internal control is fairly
stated in all material respects, based on the control criteria being followed.
Thus, for example, an examination provides the highest degree of
assurance that information produced by the system will be reliable.
(b) When involved in performing an examination on the effectiveness of
internal control a practitioner should:
Case 2. (a) PSA 100, Assurance Engagements, provide guidance for an engagement
such as one on customer satisfaction. They provide guidelines on audits
and related services such as examinations and reviews.
(b) Suitable criteria are those that are objective and permit reasonably
consistent measurements. In addition, the criteria must be sufficiently
complete such that no relevant factors are omitted that would affect a
conclusion about the subject matter. Finally, the criteria must measure
some characteristic of the subject matter that is relevant to a users
decision.
(c)
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