CAF-8 · Chapter 1 · Question 7 of 10
Which of the following is NOT an element of an assurance engagement?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Absolute verification of all transactions
Explanation
The elements of an assurance engagement include a three-party relationship, subject matter, suitable criteria, evidence, and an assurance report. Absolute verification is not an element, as audits provide reasonable assurance.
More Concept and Need for Audit MCQs
- Q9Management is fundamentally responsible for which of the following?
- Q10A statutory audit is mandated by law. According to the Companies Act 2017, what happens if a company fails to appoint its first auditor…
- Q1Mr. Zaid, the CEO of Delta Manufacturing, believes that an external audit acts as a complete guarantee that no fraud exists within the…
- Q2Which of the following is an inherent limitation of an audit that prevents the auditor from providing absolute assurance?
- Q3Under the Companies Act, 2017, what is the required timeframe for the appointment of the first external auditor by the directors of a…