Description : The framework for auditing and related services as addressed by PSA excludes a. Review b. Compilation c. Tax services d. Agreed upon procedure
Last Answer : Tax services
Description : Identify the correct statement. a. Accounting services do not provide attestation. b. Management consulting services provide attestation in all cases. c. An audit provides limited assurance by ... d. A review provides positive assurance by attesting the reliability of the client's assertions
Last Answer : Accounting services do not provide attestation
Description : Pronouncements of Auditing and Assurance Standards Council (AASC) do not cover a. Review engagement b. Compilation engagement c. Consultancy d. Agreed-upon procedures engagement
Last Answer : Consultancy
Description : Which of the following services provides positive assurance through attestation? a. Tax services b. Review c. Auditing d. Accounting services
Last Answer : Auditing
Description : Which of the following is an example of an assurance engagement? a. Management advisory services b. Reporting on financial statements prepared using other comprehensive basis of accounting. c. compilation of financial information d. preparation of tax returns
Last Answer : Reporting on financial statements prepared using other comprehensive basis of accounting.
Description : Assurance engagements encompass the following types of services, except: a. Audit of historical financial statements. b. Review engagements. c. Management consulting. d. Attestation services
Last Answer : Management consulting.
Description : The Framework of Philippine Standards on Auditing distinguishes audits from related services. Related services include all of the following, except a. Reviews. b. Compilations. c. Agreed-upon procedures. d. Management consulting.
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 : Which of the following is one of the functions of Quality Review Committee: a. To promulgate accounting and auditing standards that will be generally accepted in the Philippines. ... accountancy. d. To evaluate periodically the performance of educational institutions offering accountancy education.
Last Answer : To conduct a review on applicants for registration to practice public accountancy and render a report which shall be attached to the application for registration.
Description : Which of the following services provides the highest level of assurance to third parties about a company's financial statements? a. Audit. b. Review. c. Compilation. d. Each of the above provides the same level of assurance.
Last Answer : Audit
Description : A member in public practice may perform for a contingent fee any professional services for a client for whom the member or member's firm performs a. An audit. b. A review. c. A compilation used only by management. d. An audit of prospective financial information
Last Answer : A compilation used only by management.
Description : A member in public practice may perform for a contingent fee any professional services for a client for whom the member or member's firm performs a. An audit. b. A review. c. A compilation used only by management. d. An audit of prospective financial information.
Description : Which of the following services provides a moderate level of assurance about the client's financial statements? a. Forecasts and projections b. Compliance with contractual agreement c. Review d. Compilation
Last Answer : Review
Description : The Philippine Standards on Quality Control (PSQCs) are to be applied to a. Assurance engagements only. b. Review engagements only. c. Compilation and review engagements only. d. All services that fall under the AASC's engagement standards.
Last Answer : All services that fall under the AASC's engagement standards.
Description : The following are assurance engagements except a. Tax consulting b. Financial statements audit c. Review of financial statements d. Information system reliability services
Last Answer : Tax consulting
Description : Engagements frequently performed by professional accountants that are not assurance engagements include the following except a. Compilation b. Agreed-upon procedures. c. Compliance audit d. Management consulting
Last Answer : Compliance audit
Description : The term receiving accountant includes the following, except; a. A professional accountant in public practice to whom existing accountant has referred tax engagement. b. A professional accountant ... or carrying out accounting, taxation, consulting or similar professional services for a client.
Last Answer : A professional accountant in public practice currently holding an audit appointment or carrying out accounting, taxation, consulting or similar professional services for a client.
Description : Existing accountant, as defined in the Code of Ethics, means a. A professional accountant employed in industry, commerce, the public sector or education. b. Those persons who hold a valid ... a position similar to that of a partner and each staff in a practice providing professional services
Description : Which of the following is incorrect regarding a compilation engagement? a. The CPA uses his auditing expertise to collect, classify and summarize financial information. b. The CPA should exercise due ... . d. The procedures performed do not enable the accountant to express any form of assurance.
Last Answer : The CPA uses his auditing expertise to collect, classify and summarize financial information
Description : Which of the following is incorrect regarding a compilation engagement? a. The CPA uses his auditing expertise to collect, classify and summarize financial information. b. The CPA should exercise due ... form. d. The procedures performed do not enable the accountant to express any form of assurance
Last Answer : The CPA uses his auditing expertise to collect, classify and summarize financial information.
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 : What is the proper organizational role of internal auditing? a. To serve as an independent, objective assurance and consulting activity that adds value to operations. b. To assist the external auditor in ... . d. To serve as the investigative arm of the audit committee of the board of directors
Last Answer : To serve as an independent, objective assurance and consulting activity that adds value to operations.
Description : For assurance engagements regarding historical financial information, reasonable assurance engagements are called: a. Review engagements. b. Audit engagements. c. Compilation engagements. d. Agreed-upon procedures engagements
Last Answer : Audit engagements
Description : A report on factual findings is the end product of the auditor when performing: a. Audit. b. Review. c. Agreed-upon procedures. d. Compilation
Last Answer : Agreed-upon procedures
Description : For assurance engagements regarding historical financial information, reasonable assurance engagements are called: a. Review engagements. b. Audit engagements. c. Compilation engagements. d. Agreed-upon procedures engagements.
Last Answer : Audit engagements.
Description : A report on factual findings is the end product of the auditor when performing: a. Audit. b. Review. c. Agreed-upon procedures. d. Compilation.
Description : An accountant who reviews the financial statements should issue a report stating that a review a. Is substantially less in scope than an audit. b. Provides negative assurance that the internal ... the financial statements are fairly presented. d. Is substantially more in scope than a compilation
Last Answer : Is substantially less in scope than an audit.
Description : When an accountant performs more than one level of service, he generally should issue a report that is appropriate for: a. The lowest level of service rendered. b. A compilation engagement. c. The highest level of service rendered. d. A review engagement
Last Answer : The highest level of service rendered.
Description : Which of the following procedures is normally performed in connection with a compilation engagement? a. Inquire of management about subsequent events b. Making inquiries of management ... meeting c. Applying analytical review procedures d. Collect, classify and summarize financial information
Last Answer : Collect, classify and summarize financial information
Description : The procedures employed in doing compilation are: a. Designed to enable the accountant to express a limited assurance b. Designed to enable the accountant to express a negative assurance c. ... form of assurance d. Less extensive than review procedures but more extensive than agreed-upon procedures
Last Answer : Not designed to enable the accountant to express any form of assurance
Description : Each page of the financial information compiled by the accountant should include the following reference, except a. "Unaudited" b. "Compiled, Negative Assurance Expressed" c. "Compiled without Audit or Review" d. "Refer to Compilation Report
Last Answer : "Compiled, Negative Assurance Expressed"
Description : You own Dude, Inc., which manufactures wooden tables. You need to hire some accountants to prepare your monthly financial statements. The preparation of your financial statements is referred to as a(n) a. Audit. b. Review. c. Compilation. d. Special report
Last Answer : Compilation.
Description : A CPA should not submit unaudited financial statements of a non-public entity to a client or others unless, as a minimum, the CPA complies with the provisions applicable to a. Audit engagements. b. Review engagements. c. Assurance engagements. d. Compilation engagements.
Last Answer : Compilation engagements.
Description : The Philippine Standards on Assurance Engagements (PSAEs) are to be applied in a. The audit or review of historical financial information. b. Assurance engagements dealing with ... information. d. Assurance engagements dealing with subject matters other than historical financial information.
Last Answer : Assurance engagements dealing with subject matters other than historical financial information.
Description : The predominant type of attestation service performed by CPAs is: a. Audit. b. Review. c. Compilation d. Management consulting
Description : The Framework of PSA applies to a. Taxation b. Consultancy c. Accounting advice d. Compilation
Last Answer : Compilation
Description : The term "accountant" has been used by Auditing and Assurance Standards Council to refer to a CPA in public practice who is engaged to: a. Audit financial statements. b. Review financial statements. c. Apply agreed-upon procedures. d. Compile financial statements
Last Answer : Compile financial statements
Description : The term "accountant" has been used by Auditing and Assurance Standards Council to refer to a CPA in public practice who is engaged to: a. Audit financial statements. b. Review financial statements. c. Apply agreed-upon procedures. d. Compile financial statements.
Last Answer : Compile financial statements.
Description : After an auditor had been engaged to perform the first audit for a nonpublic entity, the client requested to change the engagement to a review. In which of the following situations would ... determined that an unqualified opinion was warranted, but there was a disagreement concerning the audit fee.
Last Answer : The client's bank required an audit before committing to a loan, but the client subsequently acquired alternative financing.
Description : Consultation is usually undertaken for: a. Difficult or contentious matters. b. Matters for which there is readily available support. c. Matters for which the judgment of the engagement leader is deemed sufficient. d. Straightforward matters involving accounting and auditing
Last Answer : Difficult or contentious matters
Description : The following methods are most likely to develop capabilities and competence, except: a. Professional education. b. Continuing professional development, including training. c. Work experience and ... by less experienced staff d. Self-study modules on professional accounting and auditing literature
Last Answer : Work experience and coaching by less experienced staf
Description : .In financial statement audits, the audit process should be conducted in accordance with a. The audit program b. Philippine Accounting Standards c. Philippine Standards on Auditing d. Philippine Financial Reporting Standards
Last Answer : Philippine Standards on Auditing
Description : An attestation engagement is one in which a CPA is engaged to: a. Assemble prospective financial statements based on the assumptions of the entity's management without expressing any Testify as an expert ... or prepare a tax return based on financial information the CPA has not audited or reviewed.
Last Answer : Issue a written communication expressing a conclusion about the reliability of a written assertion that is the responsibility of another party
Description : Most accounting and auditing professionals agree that when an audit has failed to uncover material misstatements, and the wrong type of audit opinion is issued, the audit firm a. Has failed to ... lawsuit. d. Should not be held responsible for the financial loss suffered loss suffered by others
Last Answer : Should be asked to defend the quality of the audit
Description : Which of the following statements best describes the auditor's responsibility regarding the detection of material errors and frauds? a. The auditor is responsible for the failure to detect material ... unrecorded transactions even if there is no evidence that material errors and frauds may exist
Last Answer : The audit should be designed to provide reasonable assurance that material errors and frauds are detected
Description : Generally accepted accounting principles (GAAP) are distinguished from generally accepted auditing standards (GAAS) in that: a. GAAP are the principles auditors follow when conducting an audit, while GAAS ... deficiencies. d. GAAP are promulgated by the SEC, while GAAS are promulgated by the PFRC
Last Answer : GAAP are the principles for presentation of financial statements and underlying transactions, while GAAS are the standards that the auditors should follow when conducting an audit.
Description : In financial statement audits, the audit process should be conducted in accordance with a. Philippine Financial Reporting Standards b. International Accounting Standards c. Philippine Standards on Auditing d. Philippine Accounting Standards
Description : Which of the following mostly describes the function of AASC? a. To monitor full compliance by auditors to PSAs. b. To assist the Board of Accountancy in conducting administrative proceedings on ... both auditing and financial accounting in order to make them responsive to the needs of the public
Last Answer : To promulgate auditing standards, practices and procedures that shall be generally accepted by the accounting profession in the Philippines.
Description : Which of the following best describes what is meant by generally accepted auditing standards? a. Pronouncements issued by the Auditing and Assurance Standards Council. b. Rules acknowledged by the ... evidence to support financial statements. d. Measures of the quality of the auditor's performance
Last Answer : Measures of the quality of the auditor's performance