Question

Which of the following statements is correct?

Select one:

a. An engagement designed to express limited assurance relating to subject matter or an assertion is called an examination.

b. An attest engagement in which the CPAs agree to perform procedures for a specified party and issue a report that is restricted to use by that party is called an agreed-upon procedures engagement.

c. Professional services that can be performed without considering ethics, integrity or independence are called nonassurance services.

d. Professional services that enhance the quality of information, or its context, for decision makers are called nonattest services.

Audits lend credibility to information by reducing ____________, or the risk that the information used to assess business risk is not accurate (or materially misstated)

Select one:

a. information risk

b. operational risk

c. audit risk

d. business risk

Which of the following statements is correct?

Select one:

a. Errors are intentional misstatements or omissions of amounts or disclosures in the financial statements.

b. Professional skepticism refers to an attitude that includes a questioning mind, being alert to conditions that may indicate possible misstatements, and a critical assessment of audit evidence

c. Audits provide absolute assurance of detecting material misstatements and reasonable assurance of detecting immaterial misstatements.

d. When performing an audit, auditors should not trust any documentation provided by the client's management, even if the entity shows strong internal controls.

Answer 1