Description : It is essential that users regard CPA firms as a. Competent. b. Unbiased. c. Technically proficient. d. All of the above
Last Answer : All of the above
Description : To raise the standards of the profession, the Philippine Accountancy Act of 2004 requires that the CPA profession be integrated under the rules to be established by a. The PICPA. b. The Board of Accountancy. c. The Professional Regulation Commission. d. The Government Association of CPAs.
Last Answer : The Professional Regulation Commission
Description : On every audit engagement, the CPA should comply with applicable PSAs a. Without exception. b. Except in examinations that result in a qualified report. c. Except in examinations of ... financial statements. d. Except in circumstances where the CPA is associated with unaudited financial statements
Last Answer : Without exception
Description : Which of the following methods is most commonly used to reduce information risk? a. Allow users to verify information. b. Allow all users to prepare the statements. c. Users share information risk with management. d. Have the financial statements audited
Last Answer : Have the financial statements audited
Description : Users of financial statements demand independent audit because a. Users demand assurance that fraud does not exist. b. Management may not be objective in reporting. c. Users expect auditors to correct management errors. d. Management relies on the auditor to improve internal control.
Last Answer : Management may not be objective in reporting
Description : In performing a financial statement audit, which of the following would an auditor least likely consider? a. Internal control. b. Compliance with GAAP. c. Fairness of the financial statement amounts. d. Quality of management’s business decisions.
Last Answer : Quality of management’s business decisions.
Description : Management assertions are a. Stated in the footnotes to the financial statements. b. Provided to the auditor in the assertions letter, but are not disclosed in the financial ... the accounts in the financial statements. d. Explicitly expressed representations about the financial statements
Last Answer : Implied or express representations about the accounts in the financial statements.
Description : Which of the following is not one of the concepts in the framework of auditing theory? a. Evidence b. Ethical conduct c. Fair presentation d. Conflict of interest
Last Answer : Conflict of interest
Description : Which of the following is least likely an application of maintaining an attitude of professional skepticism? a. The auditor is alert to audit evidence that contradicts or brings into question the ... audit evidence to be able to draw reasonable conclusions on which to base the audit opinion.
Last Answer : In planning and performing an audit, the auditor assumes that management is dishonest.
Description : Which of the following best describes the primary purpose of audit procedures? a. To detect errors or fraud b. To comply with generally accounting principles c. To gather sufficient, appropriate evidence d. To verify the accuracy of account balances
Last Answer : To gather sufficient, appropriate evidence
Description : An audit designed to determine the extent to which the desired results of an activity established by the legislative or other authorizing body are being achieved. a. Economy audit b. Efficiency audit c. Program results audit d. Financial-related audit
Last Answer : Program results audit
Description : An audit of financial statements is conducted to determine if the a. Organization is operating efficiently and effectively b. Client's internal control is functioning as intended. c. ... d. Overall financial statements are stated in accordance with an identified financial reporting framework
Last Answer : Overall financial statements are stated in accordance with an identified financial reporting framework
Description : Which of the following best describes due care? a. Reasonable infallibility b. Tact in avoiding legal liability c. Requisite skill and diligence d. Freedom from undue influence
Last Answer : Requisite skill and diligence
Description : It refers to the attribute or quality of audit evidence. a. Sufficiency b. Relevance c. Reliability d. Appropriateness
Last Answer : Appropriateness
Description : The assumption underlying an audit of financial statements is that they will be used by a. Different groups for different purposes. b. The general public in making investment decisions. c ... dividends. d. The regulatory agencies to verify information that is relevant to their supervisory functions.
Last Answer : Different groups for different purposes.
Description : An auditor should not render a report on: a. Client internal control. b. Management performance. c. The achievability of forecasts. d. Quarterly financial information.
Last Answer : The achievability of forecasts.
Description : Independent auditing can best be described as a a. Subset or branch of accounting. b. Professional activity that measures and communicates financial accounting data. c. A discipline or ... of financial statements. d. Regulatory activity that prevents the issuance of improper financial information
Last Answer : A discipline or professional activity that attests to the fair presentation of financial statements.
Description : Which of the following engagements is covered by the Framework for Assurance Engagements? a. Consulting engagements b. Preparation of tax returns c. Independent financial statements audit d. Agreed-upon procedures
Last Answer : Independent financial statements audit
Description : Which of the following statements is true when the CPA has been engaged to do an attestation engagement? a. The CPA firm is engaged and paid by the client; therefore, the firm has primary responsibility ... . d. As long as CPA firms are competent, it is not required that they remain unbiased.
Last Answer : The CPA firm is engaged and paid by the client, but the primary beneficiaries of the audit are the statement users
Description : How old is our little star?
Last Answer : Veeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee eeeeeeeeeeeeeeeeeeeeeeeeeeery old. Hearsay.
Description : What is catch 22 situation?
Last Answer : A catch 22 is when two things block each other, but if only one could be fixed, both will work. Eg. You call a cab to take you to an ATM to get cash. The cabbie won't take you without advance cash ... the ATM already, you could get cash to take a cab, but you are home, with no cash. You are stuck.
Description : What are your views on the 12/21/12 theory?
Last Answer : This sums it up for me.
Description : Are fringe theories, by definition, unpopular?
Last Answer : A fringe theory is one that goes against or is different from mainstream theories. Since it is outside the mainstream of thought, it makes sense that it would be less popular.
Description : Has there ever been a conspiracy theory which was proved true?
Last Answer : Watergate?
Description : The cross product of the vectors 3i + 4j – 5k and –i + j – 2k is, a) 3i – 11j + 7k b) -3i + 11j + 7k c) -3i – 11j – 7k d) -3i + 11j – 7k
Last Answer : Answer: b Explanation: Cross product of two vectors is, A X B = (a2*b3 – b2*a3)i – (a1*b3 – b1*a3)j + (a1*b2 – b1*a2)k. Using the formula, the answer can be calculated.
Description : When two vectors are perpendicular, their a) Dot product is zero b) Cross product is zero c) Both are zero d) Both are not necessarily zero
Last Answer : Answer: a Explanation: Dot product of two perpendicular vectors is given by A.B = |a||b|cos 90, which is zero. Thus, dot product is zero and vectors are perpendicular.
Description : “Cognitive theory” of learning was given by
Last Answer : Jean Piaget
Description : What is mesh in circuit theory?
Last Answer : A mesh is barrier made of conneticonstrands of metal fiber or other flexible or ductile materials
Description : Which of the following does not constitute a practice of accountancy? a. A person holding out himself as one skilled in the knowledge, science and practice of accounting and as a qualified person ... d. A person is appointed as a marketing director of a government owned and controlled corporation.
Last Answer : A person is appointed as a marketing director of a government owned and controlled corporation.
Description : A CPA is in public accounting practice when he/she a. Holds, or is appointed to, in an accounting professional group in government or in a government-owned and/or controlled ... advisory services, accounting aspect of finance, business law, taxation, and other technically related subjects
Last Answer : Represents his/her clients before government agencies on tax and other matters related to accounting
Description : Richard, CPA, performs accounting services for Norton Corporation. Norton wishes to offer shares to the public and asks Richard to audit the financial statements. Richard refers Norton to Cruz, CPA, who is more ... a. Only Richard b. Both Richard and Cruz c. Only Cruz d. Neither Richard nor Cruz
Last Answer : Both Richard and Cruz
Description : No matter competent a CPA may be, his opinion on financial statements will be of little value to those who rely upon him unless he: a. Maintains his independence. b. Maintains professional competence. c. Maintains a program of continuing education. d. Serves his clients with professional concern.
Last Answer : Maintains his independence
Description : The primary purpose of an independent financial statement audit is to a. Provide a basis for assessing management's performance b. Comply with government regulatory requirements c. Assure ... users with an unbiased opinion about the fairness of information reported in the financial statements
Last Answer : Provide users with an unbiased opinion about the fairness of information reported in the financial statements
Description : In which circumstance is a CPA firm's independence most likely to be impaired? a. An individual on the audit has a close relative who is a receptionist for the client. b. The father of ... of the office's compensation is affected by office profitability, a portion of which arises from this audit
Last Answer : The spouse of a staff member on the audit has an immaterial common stock investment in the audit client
Description : This is the traditional service provided by CPA firms. a. Tax services b. Compilation c. Reviews d. Audits
Last Answer : Audits
Description : In which circumstance is a CPA firm's independence most likely to be impaired? a. An individual on the audit has a close relative who is a receptionist for the client. b. The father of ... of the office's compensation is affected by office profitability, a portion of which arises from this audit.
Last Answer : The spouse of a staff member on the audit has an immaterial common stock investment in the audit client.
Description : It involves a study or evaluation of the quality of audit of financial statements through a review of quality control measures established by on CPA firms and individual CPAs in public practice to ... standards and practices a. External audit b. Compliance audit c. Peer review d. Quality review
Last Answer : Quality review
Description : In connection with the element of professional development, a CPA firm's system of quality control should ordinarily provide that all personnel a. Possess judgment, motivation, and adequate ... review directives. d. Have the knowledge required to enable them to fulfill responsibilities assigned.
Last Answer : Have the knowledge required to enable them to fulfill responsibilities assigned.
Description : Which of the following activities is not prohibited for the CPA firm's attestation service clients? a. Referral fees on audit jobs. b. Competitive bidding on audit jobs. c. Contingent fees on audit jobs. d. Commissions for obtaining client services on audit jobs
Last Answer : Competitive bidding on audit jobs
Description : Solicitation consists of the various means that CPA firms use to engage new clients. Which one-of the following would not be an example of solicitation? a. Advertisements in the yellow pages ... prospective clients to lunch. d. Offering seminars on current tax law changes to potential clients.
Last Answer : Accepting new clients that approach the firm
Description : Which of the following activities is not prohibited for the CPA firm's attestation service clients? a. Competitive bidding on audit jobs. b. Contingent fees on audit jobs. c. Commissions for obtaining client services on audit jobs. d. Referral fees on audit jobs.
Description : Solicitation consists of the various means that CPA firms use to engage new clients. Which one-of the following would not be an example of solicitation? a. Accepting new clients that approach the ... current tax law changes to potential clients. d. Advertisements in the yellow pages of a phone book
Description : A violation of the ethical standards would most likely have occurred when a CPA a. Made arrangement with a bank to collect notes issued by a client in payment of fees due. b. Joined an ... bookkeeping firm's practice of monthly write-ups for a percentage of fees received over a three-year period
Last Answer : Issued an unqualified opinion on the 2006 financial statements when fees for the 2005 audit were unpaid
Description : In pursuing a CPA firm's quality control objectives, a CPA firm may maintain records indicating which partners or employees of the CPA firm were previously employed by the CPA firm's clients. Which ... to satisfy? a. Monitoring. b. Human resources. c. Ethical requirements. d. Engagement performance
Last Answer : Ethical requirements.
Description : The criteria for evaluating quantitative information vary. For example, in the audit of historical financial statements by CPA firms, the criteria are usually: a. Generally accepted auditing ... Regulations of the Securities and Exchange Commission d. Regulations of the Bureau of Internal Revenue
Last Answer : Acceptable financial reporting framework
Description : A violation of the ethical standards would most likely have occurred when a CPA a. Made arrangement with a bank to collect notes issued by a client in payment of fees due. b. Joined an accounting ... firm's practice of monthly write-ups for a percentage of fees received over a three-year period.
Last Answer : Issued an unqualified opinion on the 2010 financial statements when fees for the 2009 audit were unpaid
Description : The criteria for evaluating quantitative information vary. For example, in the case of an independent audit of financial statements by CPA firms, the criteria are usually the: a. ... Financial Reporting Standards c. National Internal Revenue Code d. Securities and Exchange Commission Regulations
Last Answer : Philippine Financial Reporting Standards
Description : In determining the scope and nature of services to be performed in public practice, a CPA firm should a. Have in place internal control procedures b. Only perform accounting related services c. ... that the performance of all services is consistent with the firm's members' role as professionals
Last Answer : Determine that the performance of all services is consistent with the firm's members' role as professionals
Description : As Don Bush prepares a market attractiveness -business position model for his firm, he comes to the point of assessing the business position of the firm's line of jet skis. Which one of ... with regard to business position? A)Seasonality B)Relative market share C)Industry sales D)Market growth
Last Answer : B)Relative market share
Description : Jenkins is a small retail chain in South Wales. When considering changes in its marketing strategy, the firm's management looks only at changes in shopper attitudes and spending patterns. With ... )passive and proactive B)aggressive and proactive C)dominant and proactive D)passive and reactive
Last Answer : D)passive and reactive