AUDB323 Audit and Investigation

Review Questions: Assurance & Non-Assurance Engagement

Tutorial Questions

Question 1
What are the elements of an assurance engagement? Identify and list the elements of an
assurance engagement that can be seen in the statutory audit of a listed entity.

Question 2
The Sri Bunga Hotel Group operates a chain of 95 luxury hotels.

A new internal auditor, Abu Zubaydah, has recently joined Sri Bunga. He has been asked by
management to establish and to monitor a variety of social and environmental Key
Performance Indicators (KPIs). Zubaydah has no experience in this area, and has asked your
audit firm for some advice. It has been agreed with Sri Bunga’s audit committee that you are
to provide guidance to Zubaydah to help him in this part of his role, and that this does not
impair the objectivity of the audit.

Required:
Recommend EIGHT KPIs which could be used to monitor the Sri Bunga Hotel Group’s social
and environmental performance, and outline the nature of evidence that should be available
to provide assurance on the accuracy of the KPIs recommended.

Question 3
Explain the key characteristics of the following audit-related services:
i. A review engagement
ii. Agreed upon procedures
iii. A compilation engagement

Question 4
With regards to due diligence, answer the following:
(a) Define ‘due diligence’ and describe the purpose of a due diligence review.
(b) Discuss the difference between an assignment to provide due diligence services and a
statutory year-end audit.