Question 1

To maximise its effectiveness, the internal audit department should report to the:

Accepted Answer

A)   chief financial officer.
B)   shareholders.
C)   external auditor.
D)   board of directors.

Question 2

Under Australia's National Greenhouse and Energy Reporting Act 2007, the regulator can order compliance audits in two ways. Identify and describe.

Accepted Answer

1. If the regulator has reasonable groun...

Question 3

One disadvantage of functional auditing is the failure to evaluate interrelated functions.

Accepted Answer

A) True 
 B)False

Question 4

Effectiveness refers to the degree to which costs are reduced without reducing efficiency.

Accepted Answer

A) True 
 B)False

Question 5

The National Greenhouse and Energy Reporting Act 2007 establishes the legislative framework for:

Accepted Answer

A)   energy consumption and production.
B)   reporting greenhouse gas emissions.
C)   greenhouse gas projects.
D)   all of the above

Question 6

The assurance standards define three levels, or types, of engagements. State these three types of assurance engagements.

Accepted Answer

· Examinations
· Rev...

Question 7

Performance auditing is the review of an organisation for efficiency and effectiveness. Discuss what is meant by the terms (1) 'effectiveness' and (2) 'efficiency'.

Accepted Answer

(1) Effectiveness refers to the degree t...

Question 8

Hickory Company, whose financial statements are unaudited, has engaged an auditor to make a special review and report on Hickory's internal accounting control. In general, to which of the following will this report be LEAST useful?

Accepted Answer

A)   A regulatory agency having jurisdiction over Hickory
B)   Present and prospective customers
C)   Hickory's management
D)   The independent auditor of Hickory's parent company

Question 9

Which of the following is NOT one of the general types of prospective financial statements included in the attestation standards?

Accepted Answer

A)   Forecasts
B)   Earnings estimates
C)   Projections
D)   All of the above

Question 10

The two most important qualities for a performance auditor are:

Accepted Answer

A)   independence and competence.
B)   personality and appearance.
C)   academic background and sufficient experience.
D)   competence and technical training.

Question 11

An accountant's report expressing an opinion on an entity's internal control should:

Accepted Answer

A)   clearly disclaim responsibility for the establishment and maintenance of internal control.
B)   state that the study and evaluation of internal control was conducted in accordance with generally accepted auditing standards.
C)   include an opinion concerning management's assertions about whether the cost of correcting any material weaknesses or deficiency would exceed the benefits of reducing the risk of errors and irregularities.
D)   briefly explain the broad objectives and inherent limitations of internal control. D

Question 12

Independence of internal auditors is enhanced appropriately by having the internal audit department report to the:

Accepted Answer

A)   board of directors.
B)   controller.
C)   external auditor.
D)   treasurer.

Question 13

Discuss each of the three broad categories (types) of performance audits.

Accepted Answer

· Functional. A functional audit deals w...

Question 14

An assurance report in a prospectus is traditionally called:

Accepted Answer

A)   a Special Purpose Report.
B)   a Statutory Review Report.
C)   an Investigating Accountant's Report.
D)   an Independent Accountant's Report.

Question 15

Efficiency refers to the degree to which costs are reduced without reducing effectiveness.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following groups would NOT be involved in a performance audit?

Accepted Answer

A)   Public accounting firms
B)   Internal auditors
C)   Government auditors
D)   None of the above answers is correct; that is, all of the above could be involved. D

Question 17

Which one of the following would be done as part of a review engagement?

Accepted Answer

A)   An evaluation of internal control
B)   Analytical procedures
C)   Tests of details of balances
D)   All of the above

Question 18

In a WebTrust assurance services engagement, a client engages an accounting firm to provide reasonable assurance that a company's website complies with certain Trust Services principles and criteria for one or more aspects of e- commerce activities. A site that meets the Trust Services principles is eligible to display the WebTrust electronic seal on its transaction or order page. Describe the five Trust Services principles.

Accepted Answer

Security. The entity discloses and maint...

Question 19

Reporting under the National Greenhouse and Energy Reporting Act 2007 is optional for Australian companies.

Accepted Answer

A) True 
 B)False

Question 20

Assurance represents the extent to which a practitioner can attest that an assertion is correct.

Accepted Answer

A) True 
 B)False  False

Exam 19: Other Auditing and Assurance Engagements

To maximise its effectiveness, the internal audit department should report to the:

Correct Answer
verified

Under Australia's National Greenhouse and Energy Reporting Act 2007, the regulator can order compliance audits in two ways. Identify and describe.

Correct Answer
verified
1. If the regulator has reasonable groun...
View Answer

One disadvantage of functional auditing is the failure to evaluate interrelated functions.

Correct Answer
verified

Effectiveness refers to the degree to which costs are reduced without reducing efficiency.

Correct Answer
verified

The National Greenhouse and Energy Reporting Act 2007 establishes the legislative framework for:

Correct Answer
verified

The assurance standards define three levels, or types, of engagements. State these three types of assurance engagements.

Correct Answer
verified
· Examinations
· Rev...
View Answer

Performance auditing is the review of an organisation for efficiency and effectiveness. Discuss what is meant by the terms (1) 'effectiveness' and (2) 'efficiency'.

Correct Answer
verified
(1) Effectiveness refers to the degree t...
View Answer

Hickory Company, whose financial statements are unaudited, has engaged an auditor to make a special review and report on Hickory's internal accounting control. In general, to which of the following will this report be LEAST useful?

Correct Answer
verified

Which of the following is NOT one of the general types of prospective financial statements included in the attestation standards?

Correct Answer
verified

The two most important qualities for a performance auditor are:

Correct Answer
verified

An accountant's report expressing an opinion on an entity's internal control should:

Correct Answer
verified
D

Independence of internal auditors is enhanced appropriately by having the internal audit department report to the:

Correct Answer
verified

Discuss each of the three broad categories (types) of performance audits.

Correct Answer
verified
· Functional. A functional audit deals w...
View Answer

An assurance report in a prospectus is traditionally called:

Correct Answer
verified

Efficiency refers to the degree to which costs are reduced without reducing effectiveness.

Correct Answer
verified

Which of the following groups would NOT be involved in a performance audit?

Correct Answer
verified
D

Which one of the following would be done as part of a review engagement?

Correct Answer
verified

Correct Answer
verified
Security. The entity discloses and maint...
View Answer

Reporting under the National Greenhouse and Energy Reporting Act 2007 is optional for Australian companies.

Correct Answer
verified

Assurance represents the extent to which a practitioner can attest that an assertion is correct.

Correct Answer
verified
False

Exam 19: Other Auditing and Assurance Engagements

To maximise its effectiveness, the internal audit department should report to the:

Correct AnswerverifiedShow Answer

Under Australia's National Greenhouse and Energy Reporting Act 2007, the regulator can order compliance audits in two ways. Identify and describe.

Correct Answerverified1. If the regulator has reasonable groun...View AnswerShow Answer

One disadvantage of functional auditing is the failure to evaluate interrelated functions.

Correct AnswerverifiedShow Answer

Effectiveness refers to the degree to which costs are reduced without reducing efficiency.

Correct AnswerverifiedShow Answer

The National Greenhouse and Energy Reporting Act 2007 establishes the legislative framework for:

Correct AnswerverifiedShow Answer

The assurance standards define three levels, or types, of engagements. State these three types of assurance engagements.

Correct Answerverified· Examinations· Rev...View AnswerShow Answer

Performance auditing is the review of an organisation for efficiency and effectiveness. Discuss what is meant by the terms (1) 'effectiveness' and (2) 'efficiency'.

Correct Answerverified(1) Effectiveness refers to the degree t...View AnswerShow Answer

Hickory Company, whose financial statements are unaudited, has engaged an auditor to make a special review and report on Hickory's internal accounting control. In general, to which of the following will this report be LEAST useful?

Correct AnswerverifiedShow Answer

Which of the following is NOT one of the general types of prospective financial statements included in the attestation standards?

Correct AnswerverifiedShow Answer

The two most important qualities for a performance auditor are:

Correct AnswerverifiedShow Answer

An accountant's report expressing an opinion on an entity's internal control should:

Correct AnswerverifiedD

Independence of internal auditors is enhanced appropriately by having the internal audit department report to the:

Correct AnswerverifiedShow Answer

Discuss each of the three broad categories (types) of performance audits.

Correct Answerverified· Functional. A functional audit deals w...View AnswerShow Answer

An assurance report in a prospectus is traditionally called:

Correct AnswerverifiedShow Answer

Efficiency refers to the degree to which costs are reduced without reducing effectiveness.

Correct AnswerverifiedShow Answer

Which of the following groups would NOT be involved in a performance audit?

Correct AnswerverifiedD

Which one of the following would be done as part of a review engagement?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedSecurity. The entity discloses and maint...View AnswerShow Answer

Reporting under the National Greenhouse and Energy Reporting Act 2007 is optional for Australian companies.

Correct AnswerverifiedShow Answer

Assurance represents the extent to which a practitioner can attest that an assertion is correct.

Correct AnswerverifiedFalse

Correct Answer
verified

Correct Answer
verified
1. If the regulator has reasonable groun...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
· Examinations
· Rev...
View Answer

Correct Answer
verified
(1) Effectiveness refers to the degree t...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
D

Correct Answer
verified

Correct Answer
verified
· Functional. A functional audit deals w...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
D

Correct Answer
verified

Correct Answer
verified
Security. The entity discloses and maint...
View Answer

Correct Answer
verified

Correct Answer
verified
False