Exam 19: Other auditing and assurance engagements

Comparable performance is one source of evaluation criteria for completing a performance audit.

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

When the auditor is engaged to report on the internal controls, the auditor forms an opinion about management's assertion regarding the:

When audit firms do an audit of historical financial statements, part of the audit usually consists of identifying operational problems and making recommendations that may benefit the audit client.The recommendations can be made orally, but they are typically made by use of:

Which of the following are the two most important qualities for a performance auditor?

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?

Which of the following is NOT one of the major differences between financial and performance auditing?

Compilations provide a higher level of assurance than reviews but a lower level of assurance than audits.

External auditors often reduce their level of planned detection risk when internal auditors are competent and independent in the conduct of their work.

Discuss the primary purpose of the auditor's evaluation of internal control in (1)an external audit of historical financial statements and (2)a performance audit.

When any assets of a superannuation fund are externally managed, the predominant controls are controls for:

When performing review services, the accountant is not required to obtain an understanding of the client's internal control.

A review service includes:

Before performing a review of a nonpublic entity's financial statements, an accountant should:

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

The report issued in assurance engagements may provide positive or negative assurance to the reader.Which one of the following types of engagements would provide positive assurance?

A major difficulty in performance auditing is deciding on specific criteria for evaluating whether efficiency and effectiveness have occurred.Discuss two other sources of criteria that the operational auditor can use.

When performing a review of interim information for a public company, the accountant ordinarily does not perform tests of the accounting records, independent confirmations, or physical examinations.

An assurance engagement that results in a positive assurance as to whether the assertions under examination conform to the applicable criteria is called an examination.

For financial auditing, the audit report typically goes to many users of financial statements, whereas performance audit reports are intended primarily for management.