Auditing: A Practical Approach 4th Canadian Edition by Robyn Moroney Test bank
b) financial audit.
c) operational audit.
d) compliance audit.
Answer: d
Bloomcode: Comprehension
Difficulty: Easy
Learning Objective: Differentiate between types of assurance services.
Section Reference: 1.3 Different assurance services
CPA Competency: Audit and Assurance
AACSB: Analytic
30. Ming Yao reviewed the operations of a basketball academy. His objectives were to
determine how effectively the academy delivered its many programs. What kind of an audit
did he perform?
a) operational
b) compliance
c) financial
d) comprehensive
Answer: a
Bloomcode: Comprehension
Difficulty: Easy
Learning Objective: Differentiate between types of assurance services.
Section Reference: 1.3 Different assurance services
CPA Competency: Audit and Assurance
AACSB: Analytic
31. Matt Fuller reports to the board and evaluates how the company can improve risk
management practices, internal control procedures, and certain governance issues. Who is
he?
a) President
b) Controller
c) Treasurer
d) Internal Auditor
Answer: d
Bloomcode: Comprehension
Difficulty: Easy
Learning Objective: Differentiate between types of assurance services.
Section Reference: 1.3 Different assurance services
CPA Competency: Audit and Assurance
AACSB: Analytic
32. Which of the following is not true about Corporate Social Responsibility assurance?
a) reporting is voluntary and is becoming more widespread
b) includes both financial and non-financial information
c) is required to be performed by an auditor
d) disclosures include environmental, employee, and social reporting
Answer: c
Bloomcode: Knowledge
Difficulty: Easy
Learning Objective: Differentiate between types of assurance services.
Section Reference: 1.3 Different assurance services
CPA Competency: Audit and Assurance
AACSB: Analytic
33. Which of the following is a component of the “Other Information” section of the auditor’s report?
a) auditor’s responsibilities with respect to the audited financial statements
b) management’s responsibility for internal controls as they relate to the financial statements
c) responsibility of those charged with governance to oversee the financial reporting process
d) management’s responsibility for other information
Answer: d
Bloomcode: Knowledge
Difficulty: Easy
Learning Objective: Explain the different levels of assurance.
Section Reference: 1.4 Different levels of assurance
CPA: Audit and Assurance
AACSB: Analytic
34. Which of the following is not a component of the Review Engagement Report?
a) practitioner’s responsibility for the financial statements
b) management’s responsibility for the financial statements
c) practitioner’s opinion over the reasonableness of the financial statements
d) procedures applied to the review engagement and how they differ from an audit engagement
Answer: c
Bloomcode: Knowledge
Difficulty: Easy
Learning Objective: Explain the different levels of assurance.
Section Reference: 1.4 Different levels of assurance
CPA: Audit and Assurance
AACSB: Analytic
35. Michael Stiller performed work for a client in the real estate business and issued a Compilation Engagement Report. What degree of assurance does a compilation engagement provide to the user of the statements?
a) reasonable assurance
b) moderate assurance
c) no assurance
d) complete assurance
Answer: c
Bloomcode: Comprehension
Difficulty: Easy
Learning Objective: Explain the different levels of assurance.
Section Reference: 1.4 Different levels of assurance
CPA Competency: Audit and Assurance
AACSB: Analytic
36. Theodore Heinrich prepared a set of financial statements based on information provided
to him. He checked mathematical accuracy of the data, and the client complimented him on
the reasonable cost of the work he performed. Theodore performed
a) a compilation engagement.
b) a review engagement.
c) an audit engagement.
d) an operational audit engagement
Answer: a
Bloomcode: Comprehension
Difficulty: Easy
Learning Objective: Explain the different levels of assurance.
Section Reference: 1.4 Different levels of assurance
CPA Competency: Audit and Assurance