ACC308/309

QUIZ 1
1. Which of the following is not one of the fundamental ethical principles applicable to all professional
accountants?
a. integrity and objectivity
b. independence
c. professional competence and due care
d. confidentiality
e. professional behavior

2. Which type of assurance engagement provides the highest degree of confidence to the intended users?
a. reasonable assurance engagement
b. limited assurance engagement
c. attestation engagement
d. direct engagement

3. Which is not a party to an assurance engagement?

a. Practitioner
b. Intended users
c. Consultant
d. Responsible party

4. The person or persons or class of persons for whom the practitioner prepares the assurance report is:
a. Practitioner
b. Intended users
c. Consultant
d. Responsible party

5. A subject matter in an assurance engagement can take many forms such as:
a. Financial performance or conditions
b. Nonfinancial performance or conditions
c. Physical characteristics
d. Systems and processes
e. Behavior
f. All of the above

6. A practitioner should accept an engagement if the subject matter in an engagement is appropriate. Which is
not a characteristic of an appropriate subject matter?
a. identifiable and capable of consistent evaluation or measurement against the identified criteria.
b. can be subjected to procedures for gathering sufficient appropriate evidence.
c. reliable and free from bias.
d. All of the above are characteristics of an appropriate subject matter.

7. In these engagements, the evaluation or measurement of the subject matter is performed by the responsible
party, and the subject matter information is in the form of an assertion by the responsible party that is made
available to the intended users.
a. limited assurance engagements
b. reasonable assurance engagements
c. attestation engagements
d. direct engagements

8. In these engagements, the practitioner either directly performs the evaluation or measurement of the
subject matter, or obtains a representation from the responsible party that has performed the evaluation or
measurement that is not available to the intended users. The subject matter information is provided to the
intended users in the assurance report.
a. limited assurance engagements
b. reasonable assurance engagements
c. attestation engagements
d. direct engagements

9. The benchmarks used to evaluate or measure the subject matter:

a. Appropriate subject matter
b. Suitable criteria
c. Sufficient appropriate evidence
d. A written assurance report

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ACC308/309
QUIZ 1
10. A suitable criteria exhibits the following characteristics, EXCEPT:
a. relevance
b. completeness
c. independence
d. reliability
e. neutrality
f. understandability

11. The measure of the quantity of evidence.

a. sufficiency c. relevance
b. appropriateness d. reliability

12. The measure of the quality of the evidence.

a. sufficiency c. relevance
b. appropriateness d. reliability

13. Appropriateness of evidence is a function of the reliability and:

a. relevance. c. adequacy
b. sufficiency d. consistency

14. The risk that the practitioner expresses an inappropriate conclusion when the subject matter information is
materially misstated.
a. audit risk
b. assurance engagement risk
c. inherent risk
d. control risk

15. The practitioner expresses a conclusion in the positive form in:

a. limited assurance engagements
b. reasonable assurance engagements
c. attestation engagements
d. direct engagements

16. The practitioner expresses a conclusion in the negative form in:

a. limited assurance engagements
b. reasonable assurance engagements
c. attestation engagements
d. direct engagements

17. The level of assurance engagement risk is higher in a reasonable assurance engagement than in a limited
assurance engagement.
a. True
b. False

18. Which of the following is the least persuasive type of evidence?

a. Computations made by the auditor.
b. Time cards of factory workers.
c. Canceled checks.
d. Vendor's invoice.

19. The following statements are correct, EXCEPT:

a. The greater the risk of misstatement, the more evidence is likely to be required.
b. The higher the quality of audit evidence, the less may be required.
c. The sufficiency and appropriateness of audit evidence are interrelated.
d. Obtaining more evidence will compensate for its poor quality.

20. Which of the following statements regarding reliability of evidence is NOT correct?
a. Evidence is more reliable when it is obtained from independent sources outside the entity.
b. Evidence that is generated internally is more reliable when the related controls are effective.
c. Evidence obtained directly by the auditor is more reliable than audit evidence obtained indirectly.
d. The condition of internal controls of the entity does not contribute to the reliability of audit evidence.