- 1 Marks
AAA – L3 – SA – Q4.9 – Assurance services
Question
Which of the following is true about assurance engagements?
A They are an alternative to an audit
B The subject matter is the responsibility of the professional accountant
C Assurance engagements can either have reasonable (high) or limited (moderate) levels of assurance
D There is no risk for the professional accountant
Answer
C
Explanation: Assurance engagements can provide either reasonable (high) or limited (moderate) levels of assurance, as defined by the International Framework for Assurance Engagements. Option A is incorrect because assurance engagements include audits, not replace them. Option B is wrong as the subject matter is the responsibility of management, not the accountant. Option D is false as assurance engagements involve risks, such as misstatement or liability.
- Topic: Assurance Services
- Uploader: Salamat Hamid