Question 2 (1 point)

Under Canadian Auditing Standards, the introductory paragraph of the independent auditor's report indicates that the auditor has audited the balance sheet, the income statement, the cash flow, a summary of accounting policies and notes, and

Question 2 options:

	the statements of retained earnings.
	the statement of changes in equity.
	management's discussion and analysis letter.
	the internal controls of the company.

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Question 4 (1 point)

The ASPE (Accounting Standards for Private Enterprises) financial reporting framework normally requires the auditor to report using the corresponding figures approach. This means that the auditor reports on

Question 4 options:

	the current year's financial statements.
	both periods under audit: the current and prior year.
	three years: the current and prior year, and the effects of the prior year.
	only the ending balances of the general ledger accounts.

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Question 5 (1 point)

It is management's responsibility to select the accounting policies that are used in the preparation of the financial statements. What is the auditor's responsibility with respect to these accounting policies?

Question 5 options:

	approve the accounting policies that are used, so that an opinion can be stated on the fairness of the financial statements
	evaluate the appropriateness of the accounting policies that are used and of the associated estimates made
	tell management which accounting policies should be selected so that accurate estimates can be made for year-end adjustments
	recalculate the estimates that are used for the accounting policies (such as bad debt allowance and warranty expenses)

Question 9 (1 point)

Double dating a report is done when

Question 9 options:

	the parent company and its subsidiaries have different year-ends.
	the auditor finishes his work later than planned.
	a material event occurs after the date of the auditor's report and affects the period that was audited.
	a material event occurs after the date of the auditor's report and before the date the report is issued.

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Question 11 (1 point)

The independent auditor's opinion explains how much evidence the auditor collects during the independent audit. How much evidence is collected?

Question 11 options:

	sufficient and appropriate evidence to provide a basis for the audit opinion
	sufficient evidence to state that there are no material errors in the financial statements
	appropriate evidence to be able to evaluate the exact accuracy of the accounting estimates
	sufficient and appropriate evidence to conclude the financial statements present a true and fair view of the economic events of the organization

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Question 12 (1 point)

The appropriate date for the audit report for a public company is the date on which the

Question 12 options:

	client's fiscal year ended.
	auditor and client entered into a contract.
	board of directors approved the financial statements.
	auditor prepares and delivers the report to the client.

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Question 13 (1 point)

A review engagement includes

Question 13 options:

	obtaining an understanding of the internal controls.
	tests of controls or transactions.
	inquiry, analytical procedures, and discussion.
	independent confirmation or physical examination.

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Question 14 (1 point)

The fact that a client has a material accounting departure for failure to follow ASPE would require the accountant to disclose that fact in a separate reservation paragraph when the accountant is performing

Question 14 options:

	a compilation.
	a review and an audit.
	either a compilation or a review.
	neither a compilation nor a review, only an audit.

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Question 15 (1 point)

Richard is performing a compilation engagement. Richard is concerned that the information is

Question 15 options:

	arithmetically correct.
	accurate.
	complete.
	in accordance with ASPE.

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