MULTIPLE CHOICE

1. Auditing is a systematic process by which a competent, independent person objectively obtains and evaluates evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between the assertions and established criteria an communicating the results thereof to interested users.

The objective obtaining and evaluating of evidence describe that the auditor

A. The auditor must be qualified to understand the criteria used and the competence to know how and what evidence to accumulate to reach the proper conclusion

B. Examining the bases for the assertions ( representations) and judiciously evaluating the results without bias or prejudice either for or against the individual (or entity) making the representations

C. These are standards against which the assertions or representations are judged. This must be specific rules prescribed by a legislative body, budgets and other measures of performance set by management

D. The expression of correspondence may be quantified such as the amount of shortage in a petty cash fund or it may be qualitative , such as the fairness or reasonableness ) of the financial statements

2. Auditing is a systematic process when

A. Examining the bases for the assertions ( representations) and judiciously evaluating the results without bias or prejudice either for or against the individual (or entity) making the representations

B. The expression of correspondence may be quantified such as the amount of shortage in a petty cash fund or it may be qualitative , such as the fairness or reasonableness ) of the financial statements

C. Implies that it is undertaken through a structured, logical and organized series of steps and procedures .

D. The auditor must be qualified to understand the criteria used and the competence to know how and what evidence to accumulate to reach the proper conclusion

3. Enhanced the credibility of the information about a subject matter ( such as the financial statement) by evaluating whether the subject matter conforms in all material respects with suitable criteria

A. Attestation Services

B. Agreed-upon procedures engagement

C. Limited Assurance Services

D. Assurance Services

4. An entitys senior management may engage a practitioner to perform an assurance engagement on a particular aspect of the entitys activities that is then immediate responsibility . The role of the senior management is

A. Engaging Party Intended User

B. Responsible Party

C. Engaging Party only

D. Intended User

5. These are standards against which the assertions or representations are judged. They maybe specific rules prescribed by a legislative body, budgets and other measures of performance set by management.

A. Audit objectives

B. Government regulations

C. Established criteria

D. Audit assertions

6. This is an engagement in which a practitioner is engaged to issue or does issue a written communication that expresses a conclusion about the reliability of a written that is the responsibility of another party

A. Agreed-upon procedures

B. Attestation Services

C. Assurance engagement

D. Audit of financial statements

7. Form of conclusion :

In our opinion , the financial statements present fairly , in all material respects, the financial position of the entity as at (date) and its financial performance and its cash flow for the year ended in accordance with ABC framework. What type of conclusion is this ?

A. Reasonable level of assurance engagement

B. Limited level of assurance

C. Agreed-upon procedures

D. Qualified Opinion