1.Which of the following statements regarding engagements that an auditor or practitioner can be associated with is true?

a) In a non-assurance engagement, no opinion is provided; however, a conclusion must be provided.

b) A high level of assurance states that "nothing has come to our attention ...."

c) A limited assurance report states that "in our opinion the financial statements present fairly, in all material respects ...."

d) In a non-assurance engagement, no opinion or a conclusion is provided.

2. With regard to the collection of evidence, how do other types of assurance engagements compare to financial statement audits?

a) As with financial statement audits, other types of assurance engagements could involve testing controls or collecting detailed substantive evidence.

b) Other types of assurance engagements would not normally involve evaluating the evidence collected, but financial statement audits would.

c) Other types of assurance engagements would not involve testing controls or collecting detailed substantive evidence, but financial statement audits would.

d) As with financial statement audits, the review of the work performed by junior staff is optional for other types of assurance engagements.

3. In comparing and contrasting assurance and non-assurance engagements, which of the following statements is true?

a) Both assurance and non-assurance engagements are performed by public accountants in the role of an auditor practitioner.

b) Both assurance and non-assurance engagements involve reporting factual findings, leaving recipients of the report to derive their own conclusions.

c) Assurance engagements require the practitioner to obtain sufficient appropriate evidence to confirm whether the subject matter is free from material misstatement; non-assurance engagements do not have this requirement.

d) Both assurance and non-assurance engagements provide some assurance on the subject matter being examined.

4. Cast Iron Inc. has engaged Jennifer, a CPA, to compile the financial statements for the year ended December 31, 20X4. Which of the following statements best describes a compilation engagement?

a) In this compilation engagement, Jennifer will prepare the financial statements and determine whether the information being reported is plausible.

b) In this compilation engagement, Jennifer will provide limited assurance that the financial information is free from material misstatement.

c) In this compilation engagement, Jennifer is concerned that the assembly of financial information is arithmetically correct.

d) Jennifer should perform the compilation engagement even if there is a reason to believe that the financial statements she will be compiling are false or misleading.

5. Sunshine State Ltd. (SSL) would like to hire Nevin, a CPA, to audit financial statements prepared under the tax basis of accounting that will accompany SSL's tax return for the 20X4 tax year. Which of the following standards would Nevin most likely follow?

a) CAS 800 Special Considerations Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks

b) CAS 805 Special Considerations Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement

c) CAS 810 Engagements to Report on Summary Financial Statements

d) CPA Canada Handbook Section 9200 Compilation Engagements