Audit Tutorial

Audit Tutorial Week 2

Question 1.10

Identifies 5 elements of an assurance engagement;

1. Three part relationships, comprising;

* Assurance practitioner (auditor)

* Responsible party (management)

* Intended user

2. Subject matter, could be financial and non-financial performance, depend on the subject matter, could take various form.

3. Suitable criteria, such as the standards or the benchmarks used to measure or evaluate the subject matter of an assurance engagement.

4. Sufficient appropriate evidence is obtained by the assurance practitioner. Whether the subject matter is free of material misstatement.

5.The assurance practitioner issues written assurance report. Provide a certain level of assurance about the subject matter in this written assurance report

Question 1.12

Refer to ASA 200 paragraph 11.

1. To obtain reasonable assurance about whether the financial report as a whole is free from material misstatement. Thereby enabling the auditor to express an opinion on whether the financial report is prepared, in all material respects, in accordance with an applicable financial reporting framework.

2. To report on the financial report and communicate as required by the Australian Auditing Standards (ASA)

Question 1.26

A) Not an assurance engagement, doesn’t have all 5 elements. It is a consulting activity

B) Not an assurance engagement. It’s a consulting activity.

C) Consulting activity.

D) It’s an assurance engagement. Compliance assurance engagement.

E) It’s an assurance engagement. Three party elements.

F) It’s a consulting activity.

G) …….

H) It’s a consulting activity.

Question 2.9

Audit of reporting entities can be performed only by the independent auditors who are registered with ASIC through the CALDB (Company auditor and liquidator disciplinary board)

The criteria for registration of auditors under S1280 of the Corporation Act 2001.

* Be an ordinary...