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 : 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 : Which of the following is the single feature that most clearly distinguishes auditing, attestation, and assurance: a. CPA's approach to the service. b. Type of service. c. Scope of services. d. Training necessary to perform the service
Last Answer : Scope of services
Last Answer : Scope of services.
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 : An engagement in which a CPA firm arranges for a critical review of its practices by another CPA firm. a. Attestation engagement b. Peer review engagement c. Quality control engagement d. Quality assurance engagemen
Last Answer : Peer review engagement
Description : Positive assurance is expressed through: a. Attestation b. Declaration c. Conclusion d. Stating whether anything has come to the auditor's attention that indicates that the financial statements are not presented fairly
Last Answer : Attestation
Description : Compilation is an example of which one of the following types of services? a. Auditing b. Review c. Consulting d. Accounting
Last Answer : Accounting
Description : A review of a company's financial statements by a CPA firm: a. Is similar in scope to an audit and adds similar credibility to the statements. b. Is significantly less in scope than an ... s opinion as to the fairness of the financial statements. d. Is designed to provide only moderate assurance
Last Answer : Is designed to provide only moderate assurance
Description : Of the following, which is the broadest concept? a. Internal control audit. b. Audit of financial statements. c. Attestation services. d. Assurance services.
Last Answer : Assurance services.
Description : These are independent professional services that improve the quality of information for decision-making. a. Audit services b. Assurance services c. Attestation services d. Management consultancy
Last Answer : Assurance services
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 : 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 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 : 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 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 : 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 : 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 : The three types of attestation services are: a. Audits, review, and compilations b. Reviews, compilations, and other attestation services c. Audits, compilations, and other attestation services d. Audits, reviews, and other attestation services
Last Answer : Audits, reviews, and other attestation services
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 : 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 : 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
Description : Which of the following statements best describes the auditor's responsibility to detect material errors and fraud? a. The auditor is responsible for the failure to detect material errors and ... detect unrecorded transactions even if there is no evidence that material errors and frauds may exis
Last Answer : The audit should be designed to provide reasonable assurance that material errors and fraud are detected.
Description : In an engagement to perform agreed-upon procedures, an auditor is engaged to: a. Use accounting expertise as opposed to auditing expertise to collect, classify, and summarize financial information. b ... and the entity and any appropriate third parties have agreed and to report on factual findings
Last Answer : Carry out those procedures of an audit nature to which the auditor and the entity and any appropriate third parties have agreed and to report on factual findings
Description : This standard-setting body replaces the Auditing Standards and Practices Council (ASPC) and is tasked to develop and issue Philippine Standards on Auditing and related Interpretations: a. ... Committee. c. Financial Reporting Standards Council. d. Auditing and Assurance Standards Council.
Last Answer : Auditing and Assurance Standards Council.
Description : This is the standard-setting body that replaces the Accounting Standards Council (ASC) and is tasked to develop and issue standards which will represent generally accepted accounting principles in ... Committee. c. Financial Reporting Standards Council. d. Auditing and Assurance Standards Council.
Last Answer : Financial Reporting Standards Council.
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 : 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 is a conceptual difference between the attestation standards and generally accepted auditing standards? a. The attestation standards do not permit an attest engagement ... standards of fieldwork in generally accepted auditing standards are included in the attestation standards
Last Answer : The attestation standards provide a framework for the attest function beyond historical financial statements.
Description : A CPA should maintain objectivity and be free of conflicts of interest when performing: a. All attestation services, but not other professional services. b. All attestation and tax services, ... professional services. c. Audits, but not any other professional services. d. All professional services
Last Answer : All professional services
Description : The confidential relationship applies to a. All services provided by CPAs. b. Only audit and attestation services. c. Audit and tax services, but no MAS services. d. Audit and MAS services, but not tax services
Last Answer : All services provided by CPAs
Last Answer : All services provided by CPAs.
Description : Which of the following best describes relationships among auditing, attest and assurance services? a. Attest is a type of auditing service. b. Assurance is a type of attest service. c. ... type of assurance service. d. Auditing and attest services represent two distinctly different types of services
Last Answer : Auditing is a type of assurance service
Description : The market for auditing services is driven by a. The regulatory authority of the Securities and Exchange Commission. b. A demand by external users of financial statements. c. Pronouncements issued by the Auditing and Assurance Standards Council. d. Congress.
Last Answer : A demand by external users of financial statements.
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 : Internal auditors review the adequacy of the company's internal control system primarily to a. Help determine the nature, timing, and extent of tests necessary to achieve audit objectives. b. ... and economically. d. Ensure that material weaknesses in the system of internal control are corrected
Last Answer : Determine whether the internal control system provides reasonable assurance that the company's objectives and goals are met efficiently and economically.
Description : Distribution of a report is always restricted when a. Negative assurance is given. b. A review has been performed. c. There is a positive expression of opinion. d. Agreed-upon procedures have been performed
Last Answer : Agreed-upon procedures have been performed
Description : The predominant type of attestation service performed by CPAs is: a. Audit. b. Review. c. Compilation d. Management consulting
Description : Examples of circumstances that may create self-review threat least likely include a. Potential employment with an assurance client. b. Preparation of original data used to generate financial ... services for an assurance client that directly affect the subject matter of the assurance engagemen
Last Answer : Potential employment with an assurance client
Description : Which of the following statements best describes review services? a. Review engagements focus on providing assurance on the internal controls of a public company. b. Review engagements focus ... d. Review engagements focus on providing limited assurance on financial statements of a private company
Last Answer : Review engagements focus on providing limited assurance on financial statements of a private company
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 : In performing an assurance engagement, a professional accountant typically a. Provides management consulting advice. b. Supplies litigation support services. c. Assesses control risk at a low level. d. Expresses a conclusion about an assertion
Last Answer : Expresses a conclusion about an assertion
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 : The overall objective of forensic auditing is to a. Attest to the efficiency with which resources are employed b. Assist members of the organization in the effective discharge of their ... in legal and financial disputes d. Provide assurance that financial data have been accurately recorded
Last Answer : Unearth the truth and provide evidence in legal and financial disputes
Description : The integrated national professional organization of Certified Public Accountants accredited by the BOA and the PRC per PRC accreditation No. 15 dated October 2, 1975. a. Philippine Institute of Certified ... (AASC) c. Financial Reporting Standards Council (FRSC) d. Education Technical Council (ETC)
Last Answer : Philippine Institute of Certified Public Accountants (PICPA)
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 : An audit made in accordance with Philippine Standards on Auditing generally should a. Be expected to provide assurance that noncompliance with laws and regulations will be detected if the internal ... relied upon to provide assurance that all noncompliance with laws and regulations will be detected
Last Answer : Not be relied upon to provide assurance that all noncompliance with laws and regulations will be detected