CGA Auditing & Assurance

Question 1

What is the primary objective of an audit?

Accepted Answer

Provide assurance on financial statements

Answer

Detect tax fraud

Answer

Ensure profitability

Answer

Evaluate marketing performance

Question 2

Which standard guides external auditors in Canada?

Accepted Answer

CAS

Answer

IFRS

Answer

GAAS

Answer

CPA Handbook – Part II

Question 3

What does 'material misstatement' refer to in auditing?

Accepted Answer

A significant financial inaccuracy

Answer

An intentional error

Answer

A note disclosure

Answer

A change in staff

Question 4

Which audit opinion indicates financial statements are fairly presented?

Accepted Answer

Unqualified opinion

Answer

Qualified opinion

Answer

Adverse opinion

Answer

Disclaimer of opinion

Question 5

Which of the following is an example of audit evidence?

Accepted Answer

Bank confirmation

Answer

Client's marketing brochure

Answer

Verbal assurance from the CFO

Answer

Draft budgets

Question 6

What is the auditor’s responsibility regarding fraud?

Accepted Answer

Assess risk and design audit procedures

Answer

Prevent all fraud

Answer

Ignore fraud under $10,000

Answer

Detect and report all illegal acts

Question 7

Which document outlines the terms of the audit engagement?

Accepted Answer

Engagement letter

Answer

Letter of confirmation

Answer

Management representation letter

Answer

Audit plan

Question 8

What is internal control in the context of auditing?

Accepted Answer

System of processes for safeguarding assets

Answer

Independent audit procedures

Answer

Financial performance analysis

Answer

Company's policy handbook

Question 9

What is the auditor's role in risk assessment?

Accepted Answer

To assess risks and plan audit work

Answer

To test company software

Answer

To identify financial advisors

Answer

To determine financial planning needs