AUDITINGTHEORY (>) ‘ ea te pg oF tien Bl Repleen haw tune infermatioe C= Thad recommendeticns Ia wrung at & pants Pinsntts rend cna Y An audit ofinancial quiches is eondote to dstermine ifthe ” vet Financial statements ire sate) in aedoelRiee Wi ing fener, 1, __clicap’s internal control is functioning ax inteted. jization is operating cificienily and effectively. audithe is following spi 1X Non-assurance engagements inclede all of A Combliance audit. B, —Agrefd-upon procedures. replace of tx return whore no coetuion i expressed 9. Management consult 3 For assurance en; c Dd. W Following, FXCEPT itd are called _ x 7 B. ¢ D. —_Exanijnations. ‘Gand ASSURANCE SERVICES (¢ applicable financial procedures or rules set down by|some inigher authority. assurance engagements J When » CPA expresses an opinion on financial stsemens, his or lea extend (0 TA. Whether the results of the client's operating decisions financial statemeats. B. ‘fhe underlying wisdom of the client's management éecisi ©. Activg participation ir D. _ Anongoing responsibility forthe client's solveney. fairly presented ia the the implementation of the advice gived to the client. © Tresabjese mane of ap astyance pagent sea ake bellowing os, RCP valuation of a capital investert propa. B. _Histoncal or prospective fname sztements E.— Company’sintomul conto! D. Performance of aa entiy that c¢ YC Which ofthe following eriteria is urigue tthe su A. independence B. General competen C. Due professional exec D._— Familiprity with the part {fwhich the auditor's 8, What are the three (3) most com vices? x ‘A. Audits, reviews and othe ees. B. — Andits| review and cormpilatius CC.» Aadits| compilations and other assur D.__ Reviews, compitations and other assurvne: surviee. 8. Which of the following) attibutes is MORE closely associated with assurance CPA firm than with othar-lines of professional work? ‘A. Indepepdence. icace. informed in current professional developments. serves the aveus cf management | [hich is performer by a professional practitioner as an ‘ch is incidentally cancerrd with the detection and Pj herein (hv: audiras showd be independent of manage 8 Internal auditing relates A. Audit Bl Audit C Augit DB. Audit mental itd. : AT) One of the government fuditing standards which is NOT observed by indepe sector is: A. Areviel shall be made of comoliance vith legal and statutory B. —Ancevaluation shall bs vaade of de system of inter} control. leervives performed by otis part \dspendent contractor. inion of fraud. rent both in fact and in ¢ CAS in the private equirements.Sufficient competent evidential matter shall be obtng observation, inquiries and D__Theautitiato be adequately planet ard wien 3X An audit designed to evaluate the efficiency and effectiveness 2! “would not come under the tite of. AD Compliance andi Management © Operational sus D. Performance audit OB. toteroalauiing is consdered te be part of an orgaiztion's ‘A, Conbol envizonment B._Extemal controls, Accounting stem Iniernal contol procedures. {Operational auditing does not focus on A. Complisnce B. Eificioney. Economy ‘an organizatip BL Extatncnes (2d reasivenen of he appicaten of Philippine Stydards on Auditing (SAS) 8 "Ar Tounderate prope dy and luaton of he Oxsng ne Bl Nottoobuinchentsby satan C. To charge fees fair! ‘Which of the following describes MOST completsly how the profession defines A. Accepting respons Code of Conduet BB. __erforming an audit from the public's point of view C. Avoiding the appearance of a significant interest in an audit D.__ Resisting a client's reluctance to reveal evidence 3X2; What particaar auitelated services provide NO assurance? ‘A. Agreed-upon procedure and compilation engagements B. Review and compilation engagements C.—Agreed-upon procedure and review y D. _ Audit and review engagements "Y6. ‘Most of the independent auditor's work in formulating, an opinion on ‘tinancial and reasonably in relation to costs of engagements, D.__ To inspect all fixed assets acquired during the vear lity to act professionally and in accor eagements ‘A. Obtaining and examining evidential matter B. Examining cash transactions Gaough inspection, rion : etna assistants are to be properly ‘supervised. mn or some part thereof the anditor: at control lependence? ‘with the professional t's interest statements consists of C. Comparing recorded accountability with physical existence of pfoperty D. Studying and evaluating interaul control 1 An external audit: ‘A. Complements an interel audit B. —Overlaps an internal audit CC. Contradicts aa internal audit DB. Confirms an internal audit : , Philippine Stendards va Auditing (PSAs) sbould be looked upon by practitioners ‘A. Minimum ste:aeds of performance which must be acl engagement B. _Leals to save for, but which are not wchievable. C_ Maximum standards which decote excelent work, D. _Beachaark to be used on all audits, reviews, and compilations. ‘An anditor should NOT renéer a report on: ‘A. The achivvability of forecasts 4 B. Client internal control C.— Management performance D. _ Quarterly financial information / Which of the following types of audite would be intended to cover environ’ ‘impact on the financial stateinents? ‘A. Anenvironmentel audit, B. Aprogram audit. CC. Aoperational mudit. D. A financial statement audit. wved on cach audit tal matters that may aHW The batimar” of hing is: B Professional judgment Co Magik audit tecmnology D. ‘and audit risk 2Y Which ofthe fotowing voneee d auling standards | TAL MCW atements does NOT propery describe limitation ofan aut? tement assertions cannot be audited. B. Many audit con B__ Many suit concason are made onthe bss of oxmining a samp of evidence § tite andcaciesnes cn case airs to veo pera evidence, Song eviereesopporing peo setts in te nial wens mast be (Bwana aoc ten presents of anes t important qualities for an operational auditor? ea ‘A. Competence and tschnical training B. Independence and compstence C. _ Persinality and appearance ti game bk ada liens xe 2G Which government afting staard is NOT cbserved by wndependent CPAS it rflew tal be made of compliance wih legal and satan rea rement B! The buat tobe adequately planned and assistants ae tobe propely supervised ation sall made ef te system of intra con ent computent evidential matter shall be ‘obtains tough inspection, ston, ingurns an confemations ee OH clstaction detec inependent avin and intra suiting? acerca for bth vaiity and vlevance of evidene, id almost exclusively with validity Witce, whereas external auditors are the private sector? interpal auditors are concern ial auditors are employees of the independent contractors. c ¢ span of coverage goes beyond financial auditing to encompass ‘opesptional and performance auditing, D. onent naditors represent tizd party users external to the auuitee entity, whereas ‘auditors report directly fo management. jis ere MOST similar? land independent Financial statement audits. ial audits ond independent firancial statement audit “onal wudite and compliance audits. Financial statement audits ard oper | c. D. jonat audits. 2S. Toherent risk and control risk collectively are known as | | ‘of material misstatement CC. Thejdual risk team D. _ Thelrisk of information dissemination Hee eae tne extent to which the desired results of an activity established by the vorizing body arc being achieved. legislative or other: | SSA. Program results audit B. — Fingacial-related audit. C. —_Eeobomy audit. D. __ Effifiency audit. 30, of the followihg is an objective of a review engagement? aI modifications should be made to such financial statements ing whether materi th ly accepted accounting principles. iting that he Financial statements, in all material respects, fairly present the B. al position and operating results ofthe client. c i oe positive opinion that te Financial information i presented i= conformity woe etceed exons PNB as re ‘have agreed as to procedures that will be Sherali TIMI ls at cen A. Inquiry and anal; rival procedures. B. Ass ‘sement of accounting and internal control systems. Raepette Ferret per nee rena ete rie, go ape sinh ie taxis.