1. Which of the following best describes the objective of an assurance engagement?

a. Improve the company’s outcomes.

b. Compare the company’s information and policies with those of other entities.
c. Enhance the credibility of information in order to improve the likelihood that the
information will meet the needs of an intended user.
d. Assist in preparing the company’s financial statements.
2. How many parties are involved in an assurance engagement?
a. 2
b. 3
c. 4
d. 5
3. Which of the following statements describes assurance services?
a. Independent professional services that are intended to enhance the credibility of
information to meet the needs of intended user.
b. Services designed to express an opinion on the fairness of an audit.
c. The preparation of financial statements or the collection, classification, and
summarization of other financial information.
d. Services designed for the improvement of operations, resulting in better
outcomes.
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 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. Which of the following is standards are to be applied, as appropriate, in the audit of
historical financial information?
a. PSREs
b. PSAEs
c. PSRSs
d. PSAs

6. Moderate Which of the following is not an assurance service?

a. Examination of prospective financial information
b. Audit of historical financial statements
c. Review of financial statements
d. Compilation of financial information
7. Which of the following professional services would be considered an assurance
engagement?
a. A management consulting engagement to provide IT advice to a client.
b. An engagement to report on compliance with statutory requirements.
c. An income tax engagement to prepare tax returns.
d. A compilation of financial statements from a client’s accounting records.
8. (90) In performing an operational audit, the auditor primarily relies on which of the
following procedures?
a. Physical inspection
b. Analytical procedures
c. Inquiry and observation
d. Tracing and vouching
9. Governmental auditing often extends beyond examinations leading to the expression of
opinion under fairness of financial presentation and includes audits of efficiency,
economy, effectiveness, and also
a. Accuracy
b. Compliance
c. Evaluation
d. internal control
10. which of the following statements is a standard applicable to financial statement audits
in accordance with government auditing standards?
a. And auditory should determine the extent to which the entities programs
achieve the desired level of results.
b. An auditor should assess whether the entity has reportable measures of
economy and efficiency that are valid and reliable.
c. An auditor should report under scope of the auditors testing of internal control.
d. An auditory should briefly describe in the auditor’s report the method of
statistical sampling used in performing tests of controls and substantive tests.
11. A pervasive characteristic of a CPA's role in a consulting services engagement is that of
being a(an)
a. Independent practitioner
b. Computer expert
c. Confidential reviewer
d. Objective advisor
12. What assurance is provided by the auditor in an agreed upon procedures engagement?
a. Reasonable
b. Absolute
c. Moderate
d. No assurance

13. Which of the following regarding consulting services is false?

a. The performance of consulting services for audit clients does not, in and of itself,
impaired auditor’s independence.
b. Consulting services differ fundamentally from the CPA's function of attesting to
the assertions of other parties.
c. Consulting services ordinarily involve external reporting.
d. Most CPA’s, including those who provide audit and tax services, also provide
consulting services to their clients.
14. Which of the following can be significantly affected by a financial statement audit?
 a. Business risk
b. Information risk
c. Inherent risk
d. The risk-free interest
15. (84) Which of the following elements does not relate to audit quality?
a. Audit competence
b. Audit fees
c. Independence
d. Due diligence