Review.docx - Question 1 Auditing Assurance 1 Audit process Q Q Q Q Q Q Q Q Q Briefly explain what a review engagement is and how it differs from an

Review.docx - Question 1 Auditing Assurance 1 Audit process...

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Question 1 Auditing, Assurance1.Audit processQBriefly explain what a review engagement is and how it differs from an audit. Briefly explain what ismean by ‘assurance services’. (1202Q1)QState which theory best explains the demand for assurance services. Briefly describe how theselected framework explains the demand for audit and assurance services.(1202Q1)QFor given situation (i) identify the type of engagement you believe would best suit the situation;(ii) give reason(s) why you believe it is the best engagement type,(ii) state the level of assurance provided.(1102Q1) week1 unseen questionQExplain what level of assurance each of the services will provide (if any) and, where applicable, inwhat form the assurance provided would be expressed. Where no assurance would be provided,explain briefly why this is so. (1002Q1)QBriefly explain what the objective of a “financial statement audit” is and how that objective isachieved. Briefly explain why a review is likely to cost less than an audit (1002Q1)QSuggest two other types of assurance engagements which you think would be most appropriate tothe club’s circumstances and explain why you think they would be the most appropriate.(1002Q1)QSection 199 of the co’s act prohibits the appointment of a body corporate as an auditor. Commentbriefly on this provision in relation to the auditor’s legal liability? (0902Q1)QBriefly explain the difference between an audit engagement and a review engagement. Ensure theexplanation covers the purpose/objective, assurance provided and conclusion format.(0902Q8)QIdentify and briefly explain any three assurance engagements involving financial information, otherthan the general purpose financial statement audit.(0902Q7)Question 2 Audit Report & Option etc.2.Audit report3.How it may be modified to communicate the auditor’s opinion or concernsto usersQExamine the audit report extracts below (3.1 – 3.3) and explain to Briar, giving reasons:a) Whether the audit report is raising any issues or not;b) Where there are issues, what the nature; and severity of these issues are. (Note: There arethree main categories of issues (or reasons) for which an audit report may be modified, two ofwhich affect the audit opinion. Issues which affect the audit opinion may be considered to be eithermaterial or pervasive. You need to make these matters clear in your explanations to Briar.)(1202Q3) week3 unseen questionQa) comply with generally accepted accounting practice in New Zealandb) comply with international financial reporting standardc) give a true and fair view of the financial position of the company and group and their financialperformance and cash flows (1202Q3)QSome matters on which the auditor is required to express an opinion in terms of both the FRA andauditing standards; Any two additional matters or opinions which must be included in the auditreport in terms of FRA requirements.(1102Q3, 0902Q1)
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