10/27/24, 7:14 PM Chapter 1: The Practitioner's Engagements | Quizlet
Name: Score:
30 Multiple choice questions
Definition 1 of 30
It is the risk that the practitioner expresses an inappropriate conclusion when the subject matter
information is materially misstated.
Business Risk
Assurance Engagement Risk
Detection Risk
Audit Risk
Definition 2 of 30
Unlike consulting services, assurance services
Make recommendations to management
Report on how to use information
Report on the quality of information
Are two-party contracts
Definition 3 of 30
The characteristics for determining whether criteria in an assurance engagement are suitable
include the following, except
Neutrality
Completeness
Verifiability
Understandability
https://quizlet.com/460557019/test?answerTermSides=2&promptTermSides=6&questionCount=30&questionTypes=4&showImages=true 1/9
10/27/24, 7:14 PM Chapter 1: The Practitioner's Engagements | Quizlet
Term 4 of 30
Whether a particular engagement is an assurance engagement will depend upon whether it
exhibits all the following three elements - a three party relationship, a subject matter and suitable
criteria.
True
False
Definition 5 of 30
In performing an attestation engagement, a CPA typically
Supplies litigation support services
Assesses control risk at a low level
Expresses a conclusion about an assertion
Provides management consulting advice
Definition 6 of 30
The decision as to whether the criteria are suitable involves considering whether the subject
matter is capable of reasonably consistent evaluation against or measurement using such criteria.
The characteristics determining whether criteria are suitable include the following, except
Sufficiency
Relevance
Reliability
Understandability
https://quizlet.com/460557019/test?answerTermSides=2&promptTermSides=6&questionCount=30&questionTypes=4&showImages=true 2/9
10/27/24, 7:14 PM Chapter 1: The Practitioner's Engagements | Quizlet
Definition 7 of 30
The highest level of assurance that may be provided by the practitioner is reasonable assurance
(less than absolute) as a result of the following factors, except
Less than 100% testing
Human Error
Conclusive Evidence
Imperfect internal control
Definition 8 of 30
Which of the following would best be described as an assurance service?
Preparing a report representing a client's position during a BIR audit
Working with a client to develop a more efficient method of processing financial
transactions
Offering an opinion concerning the accuracy of statements made on a client's web site
relating to the client's online privacy policies
Assisting a client in identifying potential sources of capital for potential sources of capital
for potential acquisitions
Definition 9 of 30
Which of the following criteria is unique to the independent auditor's attest function?
General Competence
Familiarity with the particular industry of each client
Due professional care
Independence
https://quizlet.com/460557019/test?answerTermSides=2&promptTermSides=6&questionCount=30&questionTypes=4&showImages=true 3/9
10/27/24, 7:14 PM Chapter 1: The Practitioner's Engagements | Quizlet
Definition 10 of 30
Which one of the following is not part of the attest process?
Gathering evidence about assertions
Providing the accuracy of the books and records
Evaluating evidence against objective criteria
Communicating the conclusions reached
Definition 11 of 30
The subject matter of an assurance engagement may take many forms, including
Data
Systems and processes
Behavior
All of these
Definition 12 of 30
Which of the following refers to "evidence" element of assurance engagement?
Benchmarks used to evaluate or measure the subject matter
Information obtained by the practitioner in arriving at the conclusions on which the opinion
is based
Contains a conclusion that conveys the assurance obtained about the subject matter
information
The subject matter, and subject matter information (assertion), of an assurance engagement
https://quizlet.com/460557019/test?answerTermSides=2&promptTermSides=6&questionCount=30&questionTypes=4&showImages=true 4/9
10/27/24, 7:14 PM Chapter 1: The Practitioner's Engagements | Quizlet
Definition 13 of 30
Which of the following are required to have a written report regarding the assertion of another
party?
Financial Operational Compliance Attest. Assur.
Statement Audit Audit Eng. Eng.
Audit
YES YES YES YES YES
YES YES YES YES NO
YES YES YES NO NO
YES NO NO YES YES
Definition 14 of 30
A service that always requires that a report is provided to a third party is
A. Assurance
B. Attestation
C. Audit
D. Both B and C
Definition 15 of 30
Which of the following statements is not true with respect to assurance, assertion-based
assurance, and audit services?
These services are applied only to FS and FS Accounts
These services all involve obtaining and evaluating evidence
These services all involve determining the correspondence of some information to a set of
criteria
These services all involve issuing a report
https://quizlet.com/460557019/test?answerTermSides=2&promptTermSides=6&questionCount=30&questionTypes=4&showImages=true 5/9
10/27/24, 7:14 PM Chapter 1: The Practitioner's Engagements | Quizlet
Definition 16 of 30
Which of the following is incorrect regarding the "three-party relationship" element of assurance
engagements?
Professional accountants are those persons who are members of PICPA, who should be in
public practice.
The responsible party and the intended user will often be from separate organizations but
need not be.
The responsible party is the person or persons, either as individuals or representatives of
an entity, responsible for the subject matter.
The intended user is the person or class of persons for whom the professional accountant
prepares the report for a specific use or purpose.
Term 17 of 30
The demand for assurance engagement arises because the interests of the users of information
may be different from that of the interests of those responsible for providing information.
True
False
Term 18 of 30
Under direct reporting assurance engagement, the evaluation or measurement of the subject
matter is performed by the responsible party, and the subject matter information is in the form of
assertion (representation) by the responsible party that is made available to the intended users.
True
False
Term 19 of 30
Independence standards are required for audits of public companies, but not for audits for public
companies.
True
False
https://quizlet.com/460557019/test?answerTermSides=2&promptTermSides=6&questionCount=30&questionTypes=4&showImages=true 6/9
10/27/24, 7:14 PM Chapter 1: The Practitioner's Engagements | Quizlet
Term 20 of 30
The criteria by which an auditor evaluates the information under audit may vary with the
information being audited.
True
False
Definition 21 of 30
The need for assurance services arises for all of the following reasons except:
Potential bias in providing information
Closeness between a user and organization
Complexity of the processing systems
Remoteness between a user and the organization
Definition 22 of 30
Which one of the following is not a key attribute needed to perform assurance?
subject matter knowledge
independence
established criteria or standards
accounting skills
Term 23 of 30
CPAs are the exclusive providers of assurance engagements as the subject matter of assurance
engagements is limited only to financial information of a business entity.
True
False
https://quizlet.com/460557019/test?answerTermSides=2&promptTermSides=6&questionCount=30&questionTypes=4&showImages=true 7/9
10/27/24, 7:14 PM Chapter 1: The Practitioner's Engagements | Quizlet
Term 24 of 30
The purpose of assurance engagements is to improve the quality of the information provided.
True
False
Term 25 of 30
The practitioner normally expresses limited assurance in a positive manner.
True
False
Term 26 of 30
The responsible party can be one of the intended users, and may be the only one.
True
False
Definition 27 of 30
Which of the following is broadest in scope
Audits of FS
Assurance services
Operations audit
Review of FS
https://quizlet.com/460557019/test?answerTermSides=2&promptTermSides=6&questionCount=30&questionTypes=4&showImages=true 8/9
10/27/24, 7:14 PM Chapter 1: The Practitioner's Engagements | Quizlet
Definition 28 of 30
Assurance services may include which of the following, except?
Attesting to the FS
Examination of the economy and efficiency of governmental operations
Evaluation of a division's performance for management
Engagements to testify in legal proceeding regarding accounting, auditing, taxation or
other matters
Term 29 of 30
Independence is an attribute necessary to perform assurance engagements and is only required
for assurance engagements providers.
True
False
Definition 30 of 30
The following are assurance engagements, except
Reasonable assurance engagement
Other assurance engagements
Review engagement
Tax services
Privacy Terms English (USA)
https://quizlet.com/460557019/test?answerTermSides=2&promptTermSides=6&questionCount=30&questionTypes=4&showImages=true 9/9
