1. An assurance provider has been asked to provide assurance on a company’s sustainability report. Which one of the following would provide suitable criteria for this engagement? 

A The Global Reporting Initiative G4 Guidelines.

B The International Standards on Auditing (ISA). 

C The International Financial Reporting Standards (IFRS).

D The Global Reporting Initiative Standards.

2. Factors currently driving change in internal auditing include all of the following, except for:

A The ability of internal audit to demonstrate its value-adding nature to an organisation.

B The provision of a broader range of assurance services by the external auditor.

C Increased emphasis on corporate governance and business risk management.

D The increased ability for internal audit to assist with greenhouse gas and energy reporting assurance.

3. Public sector entities are accountable to which of the following for their use of resources?

A Parliament.

B Government.

C The Treasurer.

D The relevant minister. 

4. a) What comparative advantages does the accounting profession have in offering “other  assurance services” compared to specialist consulting firms?

b) What do you see as the main obstacles to the profession in effectively providing these services?

5. An assurance practitioner has been asked to carry out a review of a sales forecast that has been prepared by management that will be issued to shareholders. The forecast predicts that sales will substantially increase next year, on the assumption that a new store location for the business will be opened just before the end of the financial year.

(i) What disclosures should the practitioner expect the client to make in the forecast so that the user is able to make judgments about the uncertainties attached to the forecasted increase in turnover? 

(ii) What other factors need to be considered by the practitioner?

6. Your audit firm has been commissioned by SPT Limited (SPT) to provide various    services. For each of the services described in a - e, indicate:

(i) the type of engagement the service would constitute, and 

(ii) the level of assurance (if any) that may be provided for the service.

a) Assess whether the entity demonstrates a commitment to integrity and ethical    values, and considers the potential for fraud in assessing risks to the achievement of its objectives.

b) Assess the interim financial information of a listed company.

c) Evaluate the accuracy of the company’s accounts receivables by agreeing schedule of major customers with corresponding names and amounts in the trial balance.

d) Evaluate the success of the Engaging staff in a sustainable and healthy work   environment initiative introduced in the company in the last year.

e) Assess the company’s adherence to its reporting obligations under the National  Greenhouse and Energy Reporting Act 2007.

7. Within a performance audit engagement state whether the following measures are of economy, efficiency or effectiveness?

a) Improvement by 7% in the number of students achieving satisfactory academic grades in a university course.

b) Number of teachers for each 1000 students in a university course.

c) Amount of expenditure on each university student.

d) For university teachers, the ratio of time spent on active teaching instruction to the time spent on administration of the unit of study.