Auditing Theory Exam 7

General Rule: Read the question carefully and answer it wisely. (10 points)

1. In an assurance engagement, the responsible party and the intended users

a. Should be from different entities
b. Should be from the same entity
c. May be from the same entity or different entities
d. Are both responsible for determining the nature, timing, and extent of the procedures to be performed

2. When performing an assurance service, professional accountants use standards or benchmarks to evaluate or measure
the subject matter of an assurance engagement. These are referred to in the Framework as
a. Criteria
b. Norms
c. Conditions
d. Gauges

3. In an assurance engagement, the outcome of the evaluation or measurement of a subject matter against criteria is called
a. Subject matter information
b. Subject matter
c. Assurance
d. Conclusion

4. A practitioner should accept an assurance engagement only if

a. The subject matter is in the form of financial information
b. The criteria to be used are not available to the intended users
c. The practitioner’s conclusion is to be contained in a written report
d. The subject matter is the responsibility of either the intended users or the practitioner

5. What level of assurance is provided by the practitioner in a review engagement?

a. No assurance
b. High, but not absolute
c. Reasonable
d. Moderate