Reference no: EM132668726

Problem 1. Which of the following elements is most likely to be a component of a direct reporting assurance engagement?

a. low level of assurance

b. absolute assurance

c. a written assertion

d. auditor independence

Problem 2. Assertions are representations by management, explicit or otherwise, that are embodied in the financial statements. Management's assertions in the financial statements are of relevance to the audit process because:

a. they relate more to the audit while the financial statements belong to the auditor

b. they are utilized by auditors in developing proper tests and procedures

c. they are the procedures that will be performed by the audit team

d. they are direct evidence that the management has prepared financial statements in accordance with generally accepted audit standards