Question

Which of the following would be considered an assurance engagement? Multiple Choice

a. Giving an opinion on a prize promoter's claims about the amount of sweepstakes prizes awarded in the past.
b. Giving an opinion on the conformity of the financlal statements of a university with generally accepted accounting principles.
c. Giving an opinion on the falr presentation of a newspaper's circulation data.
d. Giving assurance about the average drive length achleved by golfers with a client's golf balls.
e. All of the choices are correct.

Answer 1

The correct answer is e, 'All of the choices are correct,' as each option describes different scenarios where an assurance is provided regarding the reliability of specific information, therefore qualifying as assurance engagements.

Step-by-step explanation:

The question 'Which of the following would be considered an assurance engagement?' seeks to identify engagements where an opinion or assurance is provided regarding the reliability of information. Assurance engagements are typically related to audits and reviews, where the auditor expresses a conclusion designed to enhance the degree of confidence of the intended users other than the responsible party about the outcome of the evaluation or measurement of a subject matter against criteria.

Answer e, 'All of the choices are correct,' is the correct answer as each option listed (a through d) describes a scenario where an assurance is provided on different forms of information:

• Giving an opinion on the accuracy of a promoter's claims (a).
• Giving an opinion on the conformity of financial statements with GAAP (b).
• Giving an opinion on the fairness of newspaper circulation data (c).
• Giving assurance about a product's performance, such as the average drive length of golf balls (d).

These are all examples of engagements where assurance is provided on the accuracy and reliability of information, making them assurance engagements.