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CPA Assurance Elective - independent subject foundations study materials
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CPA Assurance Elective - independent subject foundations practice questions

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Question 1Audit purposes, risk, ethics and engagement planning

The three parties to an assurance engagement are the practitioner, the responsible party, and the:

  1. Intended users Correct answer.
  2. Regulator
  3. Audit committee
  4. Engagement quality reviewer

Explanation

An assurance engagement involves three parties: the practitioner, the responsible party (who is responsible for the subject matter), and the intended users for whom the practitioner prepares the assurance report.

Question 2Audit purposes, risk, ethics and engagement planning

For an assurance engagement to be accepted, the subject matter must be identifiable and the criteria must be:

  1. Suitable and available to intended users Correct answer.
  2. Established only by the practitioner
  3. Confidential to the responsible party
  4. Determined after fieldwork is complete

Explanation

Suitable criteria exhibit relevance, completeness, reliability, neutrality, and understandability, and must be available to intended users so they can understand how the subject matter was evaluated. Without suitable, available criteria, the engagement cannot proceed.

Question 3Audit purposes, risk, ethics and engagement planning

Which of the following is a precondition for accepting an audit engagement under CAS 210?

  1. Management uses an acceptable financial reporting framework and acknowledges its responsibilities Correct answer.
  2. The auditor must guarantee an unmodified opinion
  3. The client must pay the full fee in advance
  4. The prior auditor must approve the change

Explanation

CAS 210 requires the auditor to determine that the financial reporting framework is acceptable and obtain management's agreement that it acknowledges its responsibilities (the premise). These preconditions must exist before accepting the engagement.

Question 4Audit purposes, risk, ethics and engagement planning

Professional skepticism, as required by CAS 200, is best described as:

  1. An attitude that includes a questioning mind and a critical assessment of audit evidence Correct answer.
  2. Assuming management is dishonest in all cases
  3. Performing only inquiry procedures
  4. Relying entirely on management representations

Explanation

Professional skepticism is an attitude that includes a questioning mind, being alert to conditions that may indicate possible misstatement, and a critical assessment of evidence. It does not presume dishonesty but does not assume unquestioned honesty either.

Question 5Audit purposes, risk, ethics and engagement planning

An internal audit function is evaluating the design of a control. Internal audit work is most distinguishable from external audit because internal audit:

  1. Always issues an opinion on the financial statements
  2. Is prohibited from assessing controls
  3. Reports primarily to management and those charged with governance to improve operations and risk management Correct answer.
  4. Must follow CAS exactly

Explanation

Internal audit serves the organization by evaluating and improving governance, risk management, and control processes, reporting to management and those charged with governance. External audit, by contrast, provides an opinion to external users on the financial statements.

Question 6Audit purposes, risk, ethics and engagement planning

When the external auditor plans to use the work of the internal audit function under CAS 610, the auditor must first evaluate the function's:

  1. Marketing budget
  2. Office location
  3. Objectivity, competence, and systematic and disciplined approach Correct answer.
  4. Number of staff only

Explanation

CAS 610 requires the external auditor to evaluate whether the internal audit function's organizational status supports objectivity, whether it is competent, and whether it applies a systematic and disciplined approach, including quality control, before using its work.

Question 7Audit purposes, risk, ethics and engagement planning

A practitioner identifies a threat to independence because the assurance team's fees from one client represent a large portion of total firm revenue. This is an example of which type of threat?

  1. Self-review threat
  2. Self-interest threat Correct answer.
  3. Advocacy threat
  4. Familiarity threat

Explanation

Fee dependence on a single client creates a self-interest threat because the firm's financial interest in retaining the client may inappropriately influence professional judgment. Safeguards such as engagement quality reviews may reduce the threat.

Question 8Audit purposes, risk, ethics and engagement planning

A practitioner accepting a new audit engagement requests permission to communicate with the predecessor auditor. The primary purpose is to:

  1. Obtain information relevant to the decision to accept the engagement, including reasons for the change Correct answer.
  2. Negotiate the audit fee
  3. Transfer audit liability to the predecessor
  4. Avoid performing risk assessment

Explanation

Communication with the predecessor auditor helps the successor decide whether to accept the engagement, including learning about disagreements with management, integrity concerns, or reasons for the auditor change. Client permission is required because of confidentiality.

Question 9Audit purposes, risk, ethics and engagement planning

Which statement about the inherent limitations of an audit is correct?

  1. An audit eliminates all risk of material misstatement
  2. Inherent limitations only apply to small entities
  3. The use of testing and inherent limitations of internal control mean some risk always remains Correct answer.
  4. Limitations disappear if the auditor works longer hours

Explanation

Inherent limitations of an audit arise from the nature of financial reporting, the use of selective testing, and the inherent limitations of internal control, so the auditor obtains reasonable, not absolute, assurance. Some audit risk always remains.

Question 10Audit purposes, risk, ethics and engagement planning

When deciding whether to accept or continue a client, a key consideration under quality management standards is the integrity of:

  1. The firm's competitors
  2. The regulator
  3. The prior-year audit fee
  4. The principal owners, key management, and those charged with governance Correct answer.

Explanation

Client acceptance and continuance decisions require evaluating the integrity of the client's principal owners, key management, and those charged with governance, along with the firm's competence and ability to comply with ethical requirements.

Question 11Audit purposes, risk, ethics and engagement planning

Which of the following best describes 'engagement risk' in an assurance engagement?

  1. The risk that the client will not pay the fee
  2. The risk that the staff will resign
  3. The risk that the practitioner expresses an inappropriate conclusion when the subject matter is materially misstated Correct answer.
  4. The risk of a market downturn

Explanation

Engagement (assurance) risk is the risk that the practitioner expresses an inappropriate conclusion when the subject matter information is materially misstated. In a reasonable assurance engagement, the practitioner reduces this risk to an acceptably low level.

Question 12Audit purposes, risk, ethics and engagement planning

The engagement letter for an audit primarily serves to:

  1. Guarantee an unmodified opinion
  2. Document and confirm the terms of the engagement, including objectives, scope, and respective responsibilities Correct answer.
  3. Replace the audit report
  4. Eliminate the need for management representations

Explanation

CAS 210 requires the auditor to record the agreed terms of the engagement in an engagement letter, confirming the objective and scope of the audit, the responsibilities of the auditor and management, and the applicable reporting framework.

Question 13Audit purposes, risk, ethics and engagement planning

The audit risk model is best expressed as:

  1. Audit risk = Inherent risk + Control risk + Detection risk
  2. Audit risk = Inherent risk x Control risk x Detection risk Correct answer.
  3. Audit risk = Inherent risk - Detection risk
  4. Audit risk = Materiality x Sample size

Explanation

Audit risk is the product of the risk of material misstatement (inherent risk x control risk) and detection risk. To keep audit risk acceptably low, the auditor sets detection risk inversely to the assessed risk of material misstatement.

Question 14Audit purposes, risk, ethics and engagement planning

If the auditor assesses the risk of material misstatement as high, the auditor should respond by setting detection risk:

  1. Higher, performing fewer procedures
  2. Lower, performing more extensive or precise procedures Correct answer.
  3. At zero
  4. Equal to inherent risk

Explanation

Detection risk varies inversely with the risk of material misstatement. When RMM is high, the auditor must lower detection risk by increasing the nature, timing, and extent of substantive procedures to keep overall audit risk acceptably low.

Question 15Audit purposes, risk, ethics and engagement planning

Under CAS 320, performance materiality is set:

  1. Above overall materiality
  2. Below overall materiality to reduce the probability that aggregate uncorrected and undetected misstatements exceed overall materiality Correct answer.
  3. Equal to overall materiality always
  4. At zero for high-risk accounts

Explanation

Performance materiality is set lower than overall materiality so that the aggregate of uncorrected and undetected misstatements is unlikely to exceed overall materiality. It provides a margin for misstatements that individually fall below overall materiality.

Question 16Audit purposes, risk, ethics and engagement planning

An auditor identifies that a small misstatement, although below materiality, would change a reported loss into a profit. The auditor should treat the misstatement as:

  1. Immaterial because it is below the quantitative threshold
  2. Irrelevant
  3. A scope limitation
  4. Potentially material because of its qualitative nature Correct answer.

Explanation

Materiality has both quantitative and qualitative dimensions. A misstatement that turns a loss into a profit, affects compliance with covenants, or changes key ratios may be material by nature even if small in dollar terms.

Question 17Audit purposes, risk, ethics and engagement planning

CAS 240 presumes that there are risks of fraud in revenue recognition. This presumption can be rebutted only if the auditor:

  1. Believes management is honest
  2. Has a small engagement budget
  3. Concludes the presumption is not applicable in the circumstances and documents the reasons Correct answer.
  4. Performs only analytical procedures

Explanation

CAS 240 establishes a rebuttable presumption that revenue recognition is a fraud risk. The auditor may rebut it only by concluding the presumption is not applicable and documenting the reasoning; otherwise it must be treated as a significant risk.

Question 18Audit purposes, risk, ethics and engagement planning

The fraud triangle consists of incentive/pressure, opportunity, and:

  1. Rationalization/attitude Correct answer.
  2. Materiality
  3. Detection risk
  4. Going concern

Explanation

The fraud triangle comprises incentive or pressure to commit fraud, opportunity (often weak controls), and rationalization or attitude that justifies the act. Auditors consider these conditions when assessing fraud risk under CAS 240.

Question 19Audit purposes, risk, ethics and engagement planning

Which procedure is specifically required by CAS 240 in response to the risk of management override of controls?

  1. Testing journal entries and adjustments, reviewing estimates for bias, and evaluating significant unusual transactions Correct answer.
  2. Reperforming all bank reconciliations
  3. Auditing only the income statement
  4. Relying solely on management representations

Explanation

Because management can override controls, CAS 240 requires the auditor to test journal entries and other adjustments, review accounting estimates for management bias, and evaluate the business rationale of significant unusual transactions, regardless of assessed control risk.

Question 20Audit purposes, risk, ethics and engagement planning

The five components of internal control under the COSO framework are the control environment, risk assessment, control activities, information and communication, and:

  1. Monitoring activities Correct answer.
  2. Marketing
  3. Taxation
  4. Budgeting

Explanation

The COSO framework, reflected in CAS 315, identifies five components of internal control: control environment, the entity's risk assessment process, control activities, information and communication, and monitoring of controls.

Question 21Audit purposes, risk, ethics and engagement planning

Segregation of duties is a control designed primarily to:

  1. Increase processing speed
  2. Eliminate the need for management review
  3. Reduce the risk that one person can both perpetrate and conceal errors or fraud Correct answer.
  4. Reduce audit fees

Explanation

Segregation of duties separates authorization, custody of assets, and record-keeping so that no single individual can both commit and conceal an error or fraud. It is a fundamental control activity.

Question 22Audit purposes, risk, ethics and engagement planning

Under CAS 265, when the auditor identifies significant deficiencies in internal control, the auditor must:

  1. Resign from the engagement
  2. Correct the deficiencies for the client
  3. Disclose them publicly in the press
  4. Communicate them in writing to those charged with governance on a timely basis Correct answer.

Explanation

CAS 265 requires the auditor to communicate significant deficiencies in internal control in writing to those charged with governance on a timely basis. The auditor identifies and reports deficiencies but does not fix them.

Question 23Audit purposes, risk, ethics and engagement planning

A 'walkthrough' procedure, in which the auditor traces a transaction from initiation through the accounting system, primarily helps the auditor:

  1. Test operating effectiveness over the whole period
  2. Calculate materiality
  3. Confirm understanding of the design and implementation of controls Correct answer.
  4. Issue the audit report

Explanation

A walkthrough confirms the auditor's understanding of how a process and its controls are designed and whether they have been implemented. It is part of risk assessment, not a test of operating effectiveness over the period.

Question 24Audit purposes, risk, ethics and engagement planning

General IT controls (GITCs) such as access security and change management are important because they:

  1. Replace all application controls
  2. Are required only for public companies
  3. Are tested only by internal audit
  4. Support the continued effective operation of automated application controls and data integrity Correct answer.

Explanation

General IT controls underpin the reliable functioning of automated application controls and the integrity of data. If GITCs are weak, the auditor cannot rely on automated controls or system-generated reports without additional work.

Question 25Audit purposes, risk, ethics and engagement planning

A preventive control differs from a detective control in that a preventive control:

  1. Identifies errors after they occur
  2. Stops errors or fraud from occurring in the first place Correct answer.
  3. Is always automated
  4. Is performed only by management

Explanation

Preventive controls (e.g., authorization limits, segregation of duties) are designed to stop errors or fraud before they occur, while detective controls (e.g., reconciliations, exception reports) identify problems after the fact.

Question 26Audit purposes, risk, ethics and engagement planning

Inherent limitations of internal control mean that even a well-designed system cannot prevent or detect all misstatements because of:

  1. Lack of accounting standards
  2. Excessive segregation of duties
  3. Human error, collusion, and management override Correct answer.
  4. Use of external auditors

Explanation

Internal control has inherent limitations: human judgment can be faulty, controls can be circumvented by collusion of two or more people, and management can override controls. Therefore controls provide reasonable, not absolute, assurance.

Question 27Audit purposes, risk, ethics and engagement planning

When a control is performed only once a year (e.g., an annual reconciliation), the auditor testing its operating effectiveness should generally:

  1. Test a sample of 25 occurrences
  2. Test the single occurrence of the control Correct answer.
  3. Skip testing it
  4. Test it monthly

Explanation

The extent of control testing depends on frequency. For a control that operates only annually, the population is a single occurrence, so the auditor tests that one instance to evaluate operating effectiveness.

Question 28Audit purposes, risk, ethics and engagement planning

The role of the audit committee, as part of governance, in the financial reporting process is to:

  1. Prepare the financial statements
  2. Perform the external audit
  3. Set the share price
  4. Oversee financial reporting, internal control, and the external audit, and recommend the auditor's appointment Correct answer.

Explanation

The audit committee, a subset of the board, oversees the financial reporting process, internal control, and the external audit, and typically recommends the appointment of the external auditor. It enhances auditor independence and governance.

Question 29Audit purposes, risk, ethics and engagement planning

Enterprise risk management (ERM) supports assurance by helping an entity to:

  1. Eliminate all risk
  2. Avoid financial reporting
  3. Identify, assess, and respond to risks aligned with its risk appetite Correct answer.
  4. Replace internal control

Explanation

ERM is a structured process to identify, assess, prioritize, and respond to risks consistent with the entity's risk appetite. It informs the auditor's understanding of the entity's risk environment and complements internal control.

Question 30Audit purposes, risk, ethics and engagement planning

Tone at the top, as part of the control environment, refers to:

  1. The physical layout of the head office
  2. The pitch of management presentations
  3. The ethical attitude and integrity demonstrated by senior management and the board Correct answer.
  4. The software used for reporting

Explanation

Tone at the top is the ethical climate set by senior management and the board, reflecting their integrity, ethical values, and commitment to competence. A weak tone at the top increases the risk of fraud and weak controls.

Question 31Audit purposes, risk, ethics and engagement planning

The 'expectation gap' in auditing refers to the difference between:

  1. Budgeted and actual audit hours
  2. What users believe auditors do and what auditors are actually required to do Correct answer.
  3. Two competing accounting frameworks
  4. Planned and performed materiality

Explanation

The expectation gap is the difference between what the public and financial statement users believe auditors do (e.g., detect all fraud, guarantee accuracy) and what auditing standards actually require, namely reasonable assurance about material misstatement.

Question 32Audit evidence, assertions, sampling and transaction cycles

Which of the following is a financial statement assertion about classes of transactions?

  1. Cutoff Correct answer.
  2. Existence
  3. Rights and obligations
  4. Valuation and allocation

Explanation

Cutoff is an assertion about classes of transactions and events, confirming that transactions are recorded in the correct accounting period. Existence, rights and obligations, and valuation are assertions about account balances at period end.

Question 33Audit evidence, assertions, sampling and transaction cycles

An auditor confirms accounts receivable balances directly with customers. This procedure primarily addresses which assertion?

  1. Completeness
  2. Existence Correct answer.
  3. Cutoff
  4. Classification

Explanation

Positive confirmation of receivables primarily tests the existence assertion, providing evidence that recorded receivables represent valid claims. Confirmation is less effective for completeness because unrecorded receivables would not be selected for confirmation.

Question 34Audit evidence, assertions, sampling and transaction cycles

To test the completeness assertion for accounts payable, the auditor should:

  1. Trace recorded payables to vendor invoices
  2. Perform a search for unrecorded liabilities, such as examining subsequent cash disbursements Correct answer.
  3. Confirm only the largest recorded balances
  4. Recalculate depreciation

Explanation

Completeness for payables is best tested by searching for unrecorded liabilities, for example examining post-period cash disbursements, unmatched receiving reports, and vendor statements. This identifies obligations that exist but were not recorded.

Question 35Audit evidence, assertions, sampling and transaction cycles

Which source of audit evidence is generally considered the MOST reliable?

  1. Oral representations from management
  2. Evidence obtained directly by the auditor from independent external sources Correct answer.
  3. Photocopies provided by the client
  4. Internally generated documents

Explanation

Audit evidence is more reliable when obtained directly by the auditor and from knowledgeable independent external sources. Reliability increases with auditor-generated evidence, external corroboration, original documents, and strong internal control.

Question 36Audit evidence, assertions, sampling and transaction cycles

Sufficiency and appropriateness of audit evidence refer respectively to its:

  1. Cost and timing
  2. Format and language
  3. Quantity and quality (relevance and reliability) Correct answer.
  4. Source and storage

Explanation

Under CAS 500, sufficiency is the measure of the quantity of audit evidence, while appropriateness is the measure of its quality, encompassing relevance and reliability. Both are needed to support the auditor's opinion.

Question 37Audit evidence, assertions, sampling and transaction cycles

An auditor recalculates the client's depreciation expense schedule. This audit procedure is best classified as:

  1. Inquiry
  2. Observation
  3. Recalculation Correct answer.
  4. Confirmation

Explanation

Recalculation involves checking the mathematical accuracy of documents or records, such as redoing a depreciation schedule. It is a reliable procedure because the auditor performs the computation directly.

Question 38Audit evidence, assertions, sampling and transaction cycles

Attendance at the client's physical inventory count primarily allows the auditor to gather evidence about which assertions for inventory?

  1. Existence and completeness (and condition) Correct answer.
  2. Rights and classification only
  3. Cutoff and disclosure only
  4. Valuation only

Explanation

By observing the inventory count, the auditor obtains evidence about existence (counted items are present) and completeness (all items are counted), and can assess condition for obsolescence. CAS 501 requires attendance when inventory is material.

Question 39Audit evidence, assertions, sampling and transaction cycles

When auditing an accounting estimate such as a warranty provision under CAS 540, the auditor should:

  1. Accept management's point estimate without testing
  2. Evaluate the method, assumptions, and data, and consider indicators of management bias Correct answer.
  3. Only confirm the balance with a third party
  4. Ignore estimation uncertainty

Explanation

CAS 540 requires the auditor to evaluate the method, significant assumptions, and data used in an estimate, and to assess estimation uncertainty and possible management bias. Estimates are higher risk because of subjectivity.

Question 40Audit evidence, assertions, sampling and transaction cycles

An auditor wishes to test whether sales invoices recorded in the ledger are supported by valid shipping documents. The correct direction of testing is to:

  1. Trace from the shipping document forward to the ledger (tests completeness)
  2. Vouch from the ledger entry back to the shipping document (tests occurrence) Correct answer.
  3. Confirm with customers
  4. Recalculate gross margin

Explanation

Vouching starts with the recorded entry and traces back to source documents, testing occurrence/existence (that recorded sales actually happened). Tracing the opposite direction, from source to ledger, tests completeness.

Question 41Audit evidence, assertions, sampling and transaction cycles

Substantive analytical procedures are most effective when:

  1. The account balance is unpredictable
  2. A plausible and predictable relationship exists and data are reliable Correct answer.
  3. Internal controls are not tested
  4. The auditor lacks industry knowledge

Explanation

Substantive analytical procedures work best where a plausible, predictable relationship exists between data, the data are reliable, and the auditor can develop a sufficiently precise expectation. Otherwise, tests of details are needed.

Question 42Audit evidence, assertions, sampling and transaction cycles

Which statement about audit sampling is correct?

  1. Sampling risk is the risk the auditor's conclusion differs from the conclusion if the entire population were tested Correct answer.
  2. Sampling eliminates all detection risk
  3. Non-sampling risk relates only to sample size
  4. Larger samples increase sampling risk

Explanation

Sampling risk is the risk that a conclusion based on a sample differs from the conclusion that would result from testing the entire population. Non-sampling risk arises from human error, such as misapplying procedures, unrelated to sample size.

Question 43Audit evidence, assertions, sampling and transaction cycles

When an auditor uses the work of a management's expert (e.g., an actuary valuing a pension obligation), the auditor must:

  1. Automatically rely on it
  2. Re-perform the entire actuarial valuation personally
  3. Evaluate the expert's competence, capabilities, and objectivity and the appropriateness of the work as audit evidence Correct answer.
  4. Disclaim an opinion

Explanation

Under CAS 500, when using a management's expert, the auditor evaluates the expert's competence, capabilities, and objectivity, obtains an understanding of the work, and evaluates the appropriateness of that work as audit evidence for the relevant assertion.

Question 44Audit evidence, assertions, sampling and transaction cycles

Written representations obtained from management under CAS 580:

  1. Are a substitute for other audit evidence
  2. Are required only for fraud
  3. Eliminate the need for an opinion
  4. Complement, but do not replace, other audit evidence Correct answer.

Explanation

Written representations are necessary audit evidence but, by themselves, do not provide sufficient appropriate evidence about the matters they concern. They complement other procedures and confirm management's acknowledgement of its responsibilities.

Question 45Audit evidence, assertions, sampling and transaction cycles

The auditor's responsibility for subsequent events under CAS 560 between the date of the financial statements and the date of the auditor's report is to:

  1. Take no action
  2. Perform procedures to identify events requiring adjustment or disclosure Correct answer.
  3. Audit the next fiscal year
  4. Rely on the prior auditor

Explanation

CAS 560 requires the auditor to perform procedures to obtain evidence that subsequent events requiring adjustment or disclosure have been identified, up to the date of the auditor's report. These include reviewing minutes, inquiring of management, and reading interim statements.

Question 46Audit evidence, assertions, sampling and transaction cycles

Audit documentation under CAS 230 should be sufficient to enable an experienced auditor, with no previous connection to the audit, to understand:

  1. Only the final opinion
  2. The nature, timing, and extent of procedures performed, results obtained, and significant matters and conclusions Correct answer.
  3. The client's marketing plan
  4. The personal opinions of staff

Explanation

CAS 230 requires documentation sufficient for an experienced auditor, with no prior connection, to understand the nature, timing, and extent of procedures, the results and evidence obtained, and significant matters, conclusions, and professional judgments made.

Question 47Audit evidence, assertions, sampling and transaction cycles

An auditor uses a benchmarking analysis comparing the client's gross margin to industry averages. This is an example of using ratio analysis to:

  1. Replace the audit opinion
  2. Calculate income taxes
  3. Set the audit fee
  4. Identify unusual fluctuations that may indicate risk of material misstatement Correct answer.

Explanation

Ratio and trend analysis (analytical procedures) help the auditor identify unusual relationships or fluctuations that may signal a risk of material misstatement, directing attention to areas requiring further investigation.

Question 48Audit evidence, assertions, sampling and transaction cycles

When using data analytics (audit data analytics) on a full population of transactions, the auditor can:

  1. Eliminate professional judgment
  2. Avoid documenting the work
  3. Replace the need for an opinion
  4. Identify outliers and exceptions across 100% of items for further investigation Correct answer.

Explanation

Audit data analytics enable testing entire populations to identify anomalies, outliers, and exceptions for follow-up, improving risk identification. They supplement, but do not replace, professional judgment, documentation, or the auditor's opinion.

Question 49Audit evidence, assertions, sampling and transaction cycles

An auditor accumulates identified misstatements during the audit. Under CAS 450, misstatements other than clearly trivial amounts should be:

  1. Ignored if below performance materiality
  2. Corrected by the auditor
  3. Accumulated and communicated to management with a request to correct them Correct answer.
  4. Disclosed in the audit report individually

Explanation

CAS 450 requires the auditor to accumulate misstatements that are not clearly trivial and communicate them on a timely basis to the appropriate level of management, requesting correction. Uncorrected misstatements are evaluated for materiality, individually and in aggregate.

Question 50Completion, quality, documentation and supported reporting

Which combination correctly matches engagement type to level of assurance?

  1. Audit = limited; Review = reasonable; Compilation = none
  2. Audit = none; Review = reasonable; Compilation = limited
  3. Audit = reasonable; Review = limited; Compilation = none Correct answer.
  4. Audit = reasonable; Review = none; Compilation = limited

Explanation

An audit provides reasonable assurance (positive opinion), a review provides limited assurance (negative conclusion), and a compilation provides no assurance. This hierarchy is foundational to the CPA Canada assurance and related services framework.