True or False.
Chapter 1
1. Assurance engagements require independence on the part of the auditor.
2. The degree of satisfaction achieved (the level of assurance which may be
provided) is directly related to the scope of procedures performed and their
results.
3. Assurance refers to the responsible party's satisfaction as to the reliability
of an assertion being made by one party for use by another party.
4. Assurance engagements performed by professional accountants are
intended to enhance the credibility of information
5. An engagement may be classified as an assurance engagement once it
meets all six elements required by the Framework for Assurance
Engagements.
6. The responsible party and the intended user need to be from separate
organizations.
7. The term practitioner is broader in scope compared to the term auditor.
8. A professional accountant may agree to perform an assurance engagement
which they are not competent to carry out.
9. The responsible party or parties is the person(s) responsible for the subject
matter.
10. The responsible party is always the one who engages the professional
accountant.
11. The intended user is the person or class of persons who engages the
professional accountant/CPA
12. The responsible party may also be one of the intended users.
13. The subject matter of an assurance engagement may be presented as a
point in time or covering a period of time.
14. Criteria are the standards or benchmarks used to evaluate or measure the
subject matter of an assurance engagement.
15. In the case of an audit of financial statements, the suitable criteria to be
used are Philippine Standards on Auditing (PSAs).
16. Appropriateness refers to quantity, while sufficiency refers to quality, of
evidential matter.
17. Evidence obtained directly by the practitioner is less reliable than evidence
obtained indirectly or by inference.
18. The responsible party expresses a conclusion that provides a level of
assurance as to whether the subject matter conforms, in all material respects,
with the identified suitable criteria.
19. In an attestation engagement, the professional accountant expresses a
conclusion on the subject matter based on suitable criteria, regardless of
whether the responsible party has made a written assertion on the subject
matter.
20. The CPA's conclusion provides a level of assurance about the subject
matter.
21. Absolute assurance is attainable owing to the fact much of the evidence
available to the CPA is persuasive rather than conclusive.
22. Professional standards prohibit CPAs from performing non-assurance
engagements.
23. An agreed-upon procedures engagement is an assurance engagement.
24. Non-assurance engagements include: compilations, tax consulting, and
compliance audits.
25. Consulting services are two party contracts.