What sort of assurance is provided in a review engagement?

Related Mcqs:

1. What is meant by negative assurance?

   A. The auditor cannot give an opinion due to lack of evidence.
   B. The client’s financial statements were found to be materially misstated.
   C. The auditor could not conduct any tests due to lack of controls.
   D. The auditor did not find anything to indicate that a material misstatement exists.

2. The quantity of audit working papers complied on engagement would most be affected by__________?

   A. Management’s integrity
   B. Auditor’s experience and professional judgment
   C. Auditor’s qualification
   D. Control risk

3. Which of the following is not type of engagement standard?

   A. Standards on Auditing
   B. Standard on Quality Control
   C. Standards on Review Engagement
   D. Standards on Assurance Engagement

   Submitted by: ALIYA NAWAZ

4. Auditing engagement can be performed w.r.t.

   A. Profit making entity
   B. Non-profit making entity
   C. Corporate entity only
   D. Any entity

   Submitted by: ALIYA NAWAZ

5. What is the primary objective of analytical procedures used in the overall review stage of an audit?

   A. To help to corroborate the conclusions drawn from individual components of financial statements
   B. To reduce specific detection risk
   C. To direct attention to potential risk areas
   D. To satisfy doubts when questions arise about a client’s ability to continue

6. An auditor is like a_______________?

   A. Blood haunt
   B. Watch dog
   C. May both according to situation
   D. None of these

7. According to ISA 315, which of the following is NOT an element of the control environment?

   A. Participation of management
   B. Information processing
   C. Commitment to competence
   D. Human resource policies and practices

8. Which of the following is not corroborative evidence?

   A. Minutes of meetings
   B. Confirmations from debtors
   C. Information gathered by auditor through observation
   D. Worksheet supporting consolidated financial statements

9. In determining the level of materiality for an audit, what should not be considered?

   A. Prior year’s errors
   B. The auditor’s remuneration
   C. Adjusted interim financial statements
   D. Prior year’s financial statements

10. An auditor should not accept a loan on favourable commercial terms from an audit client because of the threat to his or her independence. The threat would be a___________?

    A. Self-interest threat
    B. Self-review threat
    C. Advocacy threat
    D. Familiarity threat