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CA Final Assurance Services — practice questions — page 2

Explore 34 free Assurance Services questions in CA Final Auditing. Open each question or exercise to read its content, reference answers and available explanation.

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Assurance Services questions and exercises with answers

Showing questions 31–34 of 34.

A buyer examines a target company before a takeover. This is a common example of what?Read the answer and worked solution →Which US law made due diligence a legal term?Read the answer and worked solution →Due diligence has emerged as a separate profession for accounting experts, usually called what?Read the answer and worked solution →How long does ongoing FCPA due diligence on a relationship last?Read the answer and worked solution →

Worked practice questions

A buyer examines a target company before a takeover. This is a common example of what?

  1. Statutory audit
  2. Internal audit
  3. Due diligence
  4. Compilation
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Correct answer: C. Due diligence

Evaluating a target company and its assets before a merger or acquisition is the classic due diligence exercise.

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Which US law made due diligence a legal term?

  1. Sarbanes-Oxley Act 2002
  2. Securities Act of 1933
  3. Dodd-Frank Act of 2010
  4. Exchange Act of 1934
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Correct answer: B. Securities Act of 1933

The Securities Act of 1933 gave a defence for those who made a reasonable investigation, later called due diligence.

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Due diligence has emerged as a separate profession for accounting experts, usually called what?

  1. Statutory Services
  2. Transaction Services
  3. Payroll Services
  4. Taxation Services
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Correct answer: B. Transaction Services

Accounting and audit experts doing deal investigations form the practice typically referred to as Transaction Services.

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More Auditing topics

Auditor's ReportOverview of Audit of Public Sector UndertakingsInternal AuditStandards on Auditing and Professional EthicsInternational Ethics Standards Board for AccountantsRisk Assessment and Internal ControlSpecial Features of Audit of Banks and Non-Banking Financial CompaniesAuditor's Report on Financial Statements