Topic 1

Question 1

assurance engagement

Answer 1

An assurance engagement (or service) is defined as ‘an engagement in which an assurance practitioner aims to obtain sufficient appropriate evidence in order to express a conclusion designed to enhance the degree of confidence of the intended users other than the responsible party about the outcome of the measurement or evaluation of an underlying subject matter against criteria.’

Question 2

different audit opinions

Answer 2

Unmodified opinion

Modified opinion -
Qualified
Adverse
Disclaimer of opinion

Question 3

Unmodified opinion

Answer 3

Also known as an UNQUALIFIED OPINION or clean opinion – as in a ‘clean bill of health’.
Financial report is true and fair, presents fairly the financial position of the company, information complies with AAS and Corp Act.

Question 4

Modifications that do not affect the auditor’s opinion:

Answer 4

Emphasis of matter.

Question 5

Qualified or ‘except for’

Answer 5

Can include a qualified or ‘except for’ opinion. This is when issue(s) are material but not pervasive.

Question 6

Adverse

Answer 6

Adverse opinion would arise when financial report is misstated and is material and pervasive.

Question 7

Disclaimer of opinion

Answer 7

Disclaimer of opinion would arise when there is an inability to obtain sufficient appropriate audit evidence and is material and pervasive.