Table of Contents
What Type Of Evidence Would Provide The Highest Level Of Assurance In An Attestation Engagement?
What type of evidence would provide the highest level of assurance in an attestation engagement? Evidence secured solely from within the entity.
What type of evidence would provide the highest level?
Both systems place randomized controlled trials (RCT) at the highest level and case series or expert opinions at the lowest level. The hierarchies rank studies according to the probability of bias. RCTs are given the highest level because they are designed to be unbiased and have less risk of systematic errors.
What is the highest level of assurance in auditing?
An audit provides the highest level of assurance. An audit is a methodical review and objective examination of the financial statements including the verification of specific information as determined by the auditor or as established by general practice.
What level of assurance is provided by the auditor in a review engagement?
What is the most common type of attest engagement?
3. What is the most common type of attest engagement? What is most frequently being “asserted” by management on this type of engagement? –A financial statement audit.
Which of the following types of audit evidence is the most persuasive?
Although the bank statements are in the possession of the client they originated outside of the client and relative to the other responses they are the most persuasive.
Which element of a system of quality control strives to provide the firm with reasonable assurance that its policies and procedures are operating effectively?
The objective of the human resources element of our system of quality control is to provide the firm with reasonable assurance that it has sufficient personnel with the capabilities competence and commitment to ethical principles necessary (a) to perform its engagements in accordance with professional standards and …
What are the levels of assurance?
In order of increasing level of rigor accountants generally offer three types of assurance services: compilations reviews and audits. What’s appropriate for your company depends on the needs of creditors or investors as well as the size complexity and risk level of your organization.
What type of assurance does an audit provide?
Audits. An audit provides the highest level of assurance on an organization’s financial statements. An audit provides assurance that an organization’s financial statements are free of material misstatement and are fairly presented based upon the application of generally accepted accounting principles.
What assurance does an audit provide?
What is reasonable level of assurance?
What does analytical evidence involve?
Analytical procedures are a type of evidence used during an audit. … Analytical procedures involve comparisons of different sets of financial and operational information to see if historical relationships are continuing forward into the period under review.
Does a review provide assurance?
A review provides limited assurance that the financial statements conform to generally accepted accounting principles. This is negative assurance.
Which of the following would best be described as an attest engagement?
An attest engagement is one in which a practitioner is engaged to issue or does issue an examination a review or an agreed-upon procedures report on subject matter or an assertion about the subject matter that is the responsibility of another party.
What is assurance engagement in auditing?
assurance engagement means an engagement in which an Auditor/ Audit Firmexpresses an opinion about the outcome of the evaluation or measurement of a subject matter against criteria and is aimed to enhance the degree of confidence of the third parties towards such subject matter.
Which of the following would best be described as an attest engagement quizlet?
Which of the following would best be described as an attest engagement? An engagement to assess the effectiveness of an internal control system. The Sarbanes-Oxley Act of 2002 generally allows public accounting firms to: Providing tax consulting to an audit client with audit committee approval.
Which of the following types of audit evidence is the most reliable?
(1) Information obtained indirectly from outside sources is the most reliable audit evidence.
Which of the following types of evidence is most reliable?
Confirmation of accounts receivable balance. Confirmation of accounts receivable balance is considered to be the most reliable because it…
Which of the following generally provides the most reliable evidence?
Objective evidence is more reliable and hence more persuasive than subjective evidence. The two most important factors when determining the appropriate sample size in an audit are the auditor’s expectation of misstatements and the objectivity of the evidence.
Which of the following types of evidence would an auditor most likely examine to determine whether controls are operating as designed?
To determine whether internal controls are operating as designed an auditor would most likely collect client records documenting the use of EDP programs.
Which of the following is an element of a system of quality control that should be considered?
The quality control policies and procedures applicable to a firm’s accounting and auditing practice should encompass the following elements: Independence Integrity and Objectivity. Personnel Management. Acceptance and Continuance of Clients and Engagements.
When an auditor assesses control risk at the maximum level the auditor is required to document?
If control risk is assessed at below the maximum level the auditor is required to 1) identify “specific internal control policies and procedures relevant to specific assertions that are likely to prevent or detect material misstatements in those assertions” and 2) perform “tests of controls to evaluate the …
Which is an assurance engagement?
“Assurance engagement” means an engagement in which a practitioner expresses a conclusion designed to enhance the degree of confidence of the intended users other than the responsible party about the outcome of the evaluation or measurement of a subject matter against criteria.
What are examples of assurance engagement?
For example an audit on financial statements is an example of the reasonable assurance engagement. Auditors will express their opinion based on the result of their examination. Those opinions will be based on a positive form.
What are the types of assurance engagement?
- External Audits. An Auditor states an opinion as to whether the financial statements Give a true and fair view. …
- Review engagements. The auditor reviews the financial statements using less evidence than required by an audit.
Which attestation service provides the lowest level of assurance on a financial statement?
What is attestation give examples of attest engagements?
An attestation engagement is an arrangement with a client where an independent third party investigates and reports on subject matter created by a client. Examples of attestation engagements are: Reporting on financial projections made by a client. Reporting on pro forma financial information formulated by a client.
What is the objective of assurance engagement?
The objective of an assurance engagement is to obtain sufficient appropriate evidence to express a conclusion providing reasonable or limited assurance as to whether the audited body has complied with the specified requirements of the appropriate legislation (the ‘criteria’) in all material respects.
What is the difference between an assurance engagement and an audit engagement?
What does reasonable assurance mean?
“Reasonable Assurance” is an unemployment insurance term that indicates a school employee has a contract (written or implied) that indicates they will likely be employed for the following school year term or remainder of a school term.
What is assurance engagement risk?
For a reasonable assurance engagement the practitioner needs to reduce the assurance engagement risk (the risk that an inappropriate conclusion is expressed when the information on the subject matter is materially misstated) to an acceptably low level as the basis for a positive form of expression of the practitioner’s …
Which of the following statements would most likely appear in an auditor’s engagement letter?
An auditor’s engagement letter most likely will include: Management’s acknowledgment of its responsibility for maintaining effective internal control.
What are some of the factors that influence the level of assurance obtained through substantive audit tests?
There are several factors that influence how much substantive testing is performed including the nature of the test the level of assurance necessary the type of evidence required and the complexity of the client’s data capturing systems.
What are the five major types of analytical procedures in auditing?
Typically five types of audit procedures normally use by auditors to obtain audit evidence. Those five audit procedures include Analytical review inquiry observation inspection and recalculation.
