Auditing MCQ Exam Review (2022) Auditing Multiple-Choice Questions Review Chapter 1 The parties relevant to an assurance engagement are: ● assurance practitioner, users, responsible party. Agency theory explains that audits are demanded because conflicts can arise between: ● managers and owners. The insurance hypothesis means: ● an audit acts as insurance. Performance audits are useful because: ● they are concerned with the economy, efficiency, and effectiveness of an organization's activities The function of internal audit is determined by: ● those charged with governance and management. Reasonable assurance means: ● the auditor has gathered sufficient and appropriate evidence to form a positive expression of opinion regarding the financial statements. An auditor disclaims responsibility when: ● the auditor is unable to obtain sufficient evidence about a potentially material and pervasive matter. Those charged with governance have a responsibility to ensure that the information in financial statements is: ● relevant and reliable ● comparable and understandable ● fairly presented ● ALL OF THE ABOVE The purpose of the Auditing and Assurance Standards Board is: ● to set high-quality auditing and assurance standards. The audit expectation gap occurs when: ● user beliefs do not align with what an auditor has actually done. Chapter 2 Professional behaviour means that members of the professional body must: ● uphold the reputation of the profession Due care means that members of a profession must: ● act diligently. Professional independence for auditors: ● is the ability to act with integrity, objectivity, and professional scepticism. A self-interest threat arises when: ● the auditor owns shares in the client's business. A self-review threat arises when: ● the auditor performs services for the client that are then assured. Safeguards to independence: ● minimize the risk that a threat to independence will surface. ● deal with a threat when one becomes apparent. ● are developed by the accounting profession, legislators, regulators, clients, and accounting firms. ● ALL OF THE ABOVE Audit committees for listed entities per the CSA: ● should have a formal charter. Generally, the auditor could be legally liable:

Contact the Author

Please Sign In to contact this author.

More Related Items by GradeA

Test Bank for Fundam...

Test Bank for Fundamentals of Corporate Finance 12th Edition By Stephen Ross and Randolph Westerfiel...

10 USD

0

0

[SOLUTION MANUAL) Fu...

[SOLUTION MANUAL) Fundamentals of Corporate Finance 12th Edition By Stephen Ross and Randolph Wester...

10 USD

0

0

QMI1500 Assignment 0...

QMI1500 Assignment 02 2021 AS PER UPDATED TUTORIAL LETTER...

5 USD

0

0