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CA Final System and Organization Controls — practice questions

Explore 33 free System and Organization Controls questions in CA Final Auditing. Open each question or exercise to read its content, reference answers and available explanation.

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System and Organization Controls questions and exercises with answers

Showing questions 1–30 of 33.

Assurance has how many defined components?Read the answer and worked solution →In an audit, who is the responsible party that prepares the information to be assured?Read the answer and worked solution →Who are the primary expected users in the three-party relationship of an audit?Read the answer and worked solution →An assurance engagement ends withRead the answer and worked solution →A firm designs an information system and recommends controls for its client. How is this service classified?Read the answer and worked solution →Why do agreed-upon procedures fall outside the technical definition of assurance?Read the answer and worked solution →ISAE 3000 does not cover which kind of engagement?Read the answer and worked solution →Which body issues the standard ISAE 3000?Read the answer and worked solution →ISAE 3000 is generally applied for audits of internal control, sustainability and which other area?Read the answer and worked solution →A type 1 ISAE 3000 report assuresRead the answer and worked solution →Lacking set steps, an ISAE 3000 auditor usesRead the answer and worked solution →ISAE 3402 states that assurance engagements should be performed in accordance with which standard?Read the answer and worked solution →Which body defines System and Organization Controls (SOC) reports?Read the answer and worked solution →SOC reports are intended mainly for use by which type of entity?Read the answer and worked solution →The Trust Service Criteria for SOC reports are grouped into how many categories?Read the answer and worked solution →Which of these is NOT a Trust Services Criteria category?Read the answer and worked solution →Complete, valid, timely, authorized handling isRead the answer and worked solution →SOC 2 reports are structured around which criteria?Read the answer and worked solution →Who may carry out a SOC 2 audit?Read the answer and worked solution →A financial forecast isRead the answer and worked solution →What is the key aspect of preparing a financial forecast, from which costs are then estimated?Read the answer and worked solution →What does the literature on analyst forecasts generally show?Read the answer and worked solution →Forecast revenue growth requires moreRead the answer and worked solution →The Latin term pro forma literally means what?Read the answer and worked solution →Which expense is often excluded from pro forma accounting results?Read the answer and worked solution →Pro forma use to mask GAAP figures isRead the answer and worked solution →Which group of companies boomed in pro forma reporting from the late 1990s to recast losses as profits?Read the answer and worked solution →Pro forma statements precedeRead the answer and worked solution →How should pro forma figures be presented relative to reported past figures?Read the answer and worked solution →Why do lenders and investors require pro forma statements?Read the answer and worked solution →

Worked practice questions

Assurance has how many defined components?

  1. Five
  2. Seven
  3. Three
  4. Nine
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Correct answer: A. Five

The framework lists five components: a three-party relationship, subject matter, suitable criteria, sufficient appropriate evidence and a written conclusion.

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In an audit, who is the responsible party that prepares the information to be assured?

  1. Company management
  2. The audit firm
  3. The shareholders
  4. The stock exchange
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Correct answer: A. Company management

Management prepares the accounts, so it is the responsible party, while the auditor is the independent practitioner.

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Who are the primary expected users in the three-party relationship of an audit?

  1. Shareholders
  2. Tax authorities
  3. The audit firm
  4. Company management
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Correct answer: A. Shareholders

Users are those expected to rely on the information, and in a company audit these are mainly the shareholders.

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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