Previous Question Analysis

Assurance
Professional Stage Knowledge Level
From the Year 2010 to 2016
Chapter - 1
Session Alloted Mannual BAS
Qes. # Question
Year Month Marks Sec Page Reference
In Bangladesh, the auditor will normally express his audit opinion by reference to the  ‘true 
2 and fair view’, which is an expression of reasonable assurance. Briefly define the terms ‘true’ and ‘fair’. 3 1.4 9

You are an Accountant who has been approached by Mr. X, who wants to invest in company ABC Ltd. He has
asked you for assurance whether the most recent financial statements of company ABC Ltd. are a reliable basis
for him to make his investment decision.
3 1.1 5
Identify the key elements of an assurance engagement in this scenario, if you accepted the engagement.
Mr. X (the intended user), You (the Practisioner), The Director (The responsible part)

Assurance can never be absolute’. Discuss the limitation assurance. Which three of the following are benefits of
assurance work?
• An independent professional opinion
2010 December 1 • Additional confidence given to other related parties 10 3.1 11
• Testing as a result of sampling is cheaper for the responsible party
• Judgments on estimates can be conclusive
• Assurance may act as a deterrent to error or fraud

2011 June 1 What is assurance engagement? What are the key elements of an assurance engagement? 4+8 1.1 5

Assurance service is an independent professional service, typically provided by Chartered Accountants, with the
goal of improving the information or the context of the information so that decision makers can make more
9
informed, and presumably better decisions. Assurance services provide independent and professional opinions
2011 December that reduce the information Risk (risk that comes from incorrect information).
a Audit and Assurance are always used together. What is the exact difference between these? 6
b Under the “International Framework for Assurance Engagements,” how many types of assurance engagement a
3+6
practitioner is permitted to perform? Define all.

Briefly explain the key elements of an assurance engagement and what the types of assurance are engagement
1 10 1.1 5
as per the International Framework for Assurance engagements.
2012 June
A key issue for accountants is that there are limitations to assurance services, and therefore there is always a
5
risk involved that the wrong conclusion will be drawn. What are the limitations of assurance services?
10 3.1 11

1 a. List the key elements of an assurance engagement. 5 1.1 5

2013 June
b. In addition to audit, users want some other assurance services. Give few examples. 5 1.3 8
 a Define assurance engagement. 2 1.1 5
What are the types of engagement as per definition given by IFAC? 2
b
What conclusions are given against those engagements? 4 1.2 7
The auditor normally expresses his audit opinion by reference to the ‘true and fair view’, which is an expression of reasonable
c 4
assurance. Define the term ‘true and fair. 1.4 9
2013 Dec 2
The key benefit of assurance is the independent and professional examination carried out by the auditor during the course of
d the audit. In addition, assurance gives some subsidiary benefits. List subsidiary benefits those are provided by the assurance 5 2.2 10
providers.
What are the limitations of assurance services for which the auditor cannot give a certificate of absolute assurance or
e 5 3.1 11
correctness.

An auditor requires relevant and reliable information from the management in order to satisfy himself that he has obtained
sufficient and appropriate audit evidence on the basis of which he can form his audit/assurance opinion
Define assurance services, attestation services and auditing services with examples.
a Attestation: Report on subject matter or an assertion about subject matter that is responsibility of another party. Financial 2+2+2=6 1.1 5
forecast or projection, Internal control, compliance attestation.
What are the factors, which make a person ineligible for being a company auditor as per the Companies Act, 1994? What non-
b 2+2=4
audit services are prohibited to be carried out by auditors?
2015 June 1
ABC Co. is a private limited company. The company is planning to go for IPO in September 2015. The Managing Director of the
c company asked you, as auditor for last 3 years, to give an absolute assurance report for last 5 years that his company is 5
showing increasing trend in sales and profits. Can you as a practitioner give absolute assurance? Give reasons for your answer.
For the purpose of giving opinion you have to follow Bangladesh Standards on Auditing (BSA).Discuss the terms `Reasonable
i 3
assurance engagement’ and `Limited assurance engagement’ as mentioned in the BSA.
d
How can you minimize expectation gaps which arise from a misunderstanding of the role and purpose of an audit/assurance
ii 3
engagement. Expanding the audit report, Engagement letter

a Define Assurance engagement in any audit function. 3 1.1 5

b What are the types of engagement as per definition given by IFAC? Explain. 5
What is the meaning of Auditors’ normal expression of “true and fair” in any audit report which denotes a reasonable
c 4 1.4 9
2015 Dec 1 assurance?
What are the key benefits of Assurance in any audit done by the Auditors? List down the subsidiary benefits those are provided
d 5 2.2 10
by the assurance providers.
e “Certificate of absolute assurance or correctness” cannot be provided due to some limitations. What are those? 5 3.1 11

a Define 'expectations gap’ and give three examples of misunderstandings which contribute to the expectations gap. 3 3
2016 Dec 1 The key benefit of assurance is the independent professional verification being given to the users. In addition, assurance gives
b 5
some subsidiary benefits. What are those subsidiary benefits?