Description : Which of the following statements is true? a. Professional standards prohibit CPAs from performing non-assurance engagements. b. Absolute assurance is attainable owing to the fact that much of ... to whether the subject matter conforms, in all material respects, with the identified suitable criteria
Last Answer : The CPA’s conclusion provides a level of assurance about the subject matter.
Description : Assurance engagements should exhibit the following elements except a. A subject matter b. Suitable criteria c. Evidence d. Appropriate professional fees
Last Answer : Appropriate professional fees
Description : The practitioner's report on an assurance engagement should always include the following, except a. A description of the engagement and identification of the subject matter b. Identification of the standards ... was conducted. c. Identification of the criteria. d. Reference to the work of an expert
Last Answer : Reference to the work of an expert
Description : Assurance engagement include the following, except a. An engagement conducted to provide a high level of assurance that the subject matter conforms in all material respects with identified suitable ... Philippine Standard on Assurance Engagement(s). d. An engagement to perform agreedupon procedures
Last Answer : An engagement to perform procedures.
Description : In assertion-based assurance engagements, the evaluation or measurement of the subject matter against criteria is performed by the a. Intended users b. Responsible party c. Practitioner d. AASC
Last Answer : Responsible party
Description : The following statements relate to the three parties involved in an assurance engagement. Which is correct? a. The responsible party and the intended users should always be from different entities. b. A ... , the responsible party is the engaging party, i.e., the party that engages the practitioner
Last Answer : A responsible party is the person who is responsible for the subject matter or the subject matter information
Description : When the professional accountant has obtained sufficient appropriate evidence to conclude that the subject matter conforms in all material respects with identified suitable criteria, he or she can provide what level of assurance? a. None b. High c. Absolute d. Moderate
Last Answer : High
Description : A practitioner should accept an assurance engagement only if a. The practitioner's conclusion is to be contained in a written report. b. The subject matter is the responsibility of either the intended ... of financial information. d. The criteria to be used are not available to the intended users
Last Answer : The practitioner's conclusion is to be contained in a written report.
Description : When performing an assurance service, professional accountants use standards or benchmarks to evaluate or measure the subject matter of an assurance engagement. This is known as: a. PFRS. b. Assertion. c. Criteria. d. Conclusion.
Last Answer : Criteria.
Description : Engagement risk is influenced by the risks associated with the following except a. Nature and form of the subject matter b. Nature and form of the criteria applied to the subject matter. c. Unreasonably low professional fee. d. Nature and extent of the process used to collect and evaluate evidence.
Last Answer : Unreasonably low professional fee
Description : Which of the following is not one of the requirements before accepting an assurance engagement? a. The practitioner should be competent and independent. b. The responsible party and the intended ... subject matter is identifiable and in the form that can be subjected to evidence gathering procedures
Last Answer : The responsible party and the intended user of assurance report should be from different organizations
Description : In some assurance engagements, the evaluation or measurement of the subject matter is performed by the responsible party, and the subject matter information is in the form of an ... Recurring engagements b. Non-assurance engagements c. Direct reporting engagements d. Assertion-based engagements
Last Answer : Assertion-based engagements
Description : Which of the following forms may be the subject matter of assurance engagements? a. Behavior b. Historical financial information c. Systems and processes d. All of the above
Last Answer : All of the above
Description : In an assurance engagement, this refers to the information obtained by the practitioner in arriving at the conclusions on which the conclusion is based. a. Criteria b. Assertions c. Evidence d. Generally accepted auditing standards
Last Answer : Evidence
Description : A process comprising an ongoing consideration and evaluation of the firm's system of quality control, including a periodic inspection of a selection of completed engagements, designed to enable the firm ... effectively. a. Inspection b. Monitoring c. Peer review d. Engagement quality control review
Last Answer : Monitoring
Description : There are fundamental principles that the professional accountant has to observe when performing assurance engagements. The requirement of which principle is of particular importance in an assurance ... the intended user? a. Integrity b. Confidentiality c. Professional competence d. Objectivity
Last Answer : Objectivity
Description : Which of the following is incorrect regarding the Philippine Standards on Assurance Engagements (PSAE)? a. It provides an overall framework for assurance engagements intended to provide either a high or ... level of assurance. d. If no specific standards exist for an assurance engagement, PSAE apply
Last Answer : It provides basic principles and essential procedures for engagements intended to provide a moderate level of assurance.
Description : The Philippine Framework for Assurance Engagements a. Provides a frame of reference for CPAs in public practice when performing audits, reviews, and compilations of historical financial information. b. ... of an assurance engagement, and identifies engagements to which PSAs, PSREs, and PSAEs apply
Last Answer : Defines and describes the elements and objectives of an assurance engagement, and identifies engagements to which PSAs, PSREs, and PSAEs apply
Description : CPAs in public practice who perform assurance engagements are governed by the following, except a. Framework for Assurance Engagements b. Philippine Standards on Quality Control c. Code of Ethics for ... Accountants in the Philippines d. AASC's Engagement Standards (PSAs, PSREs, PSAEs, and PSRSs
Last Answer : AASC's Engagement Standards (PSAs, PSREs, PSAEs, and PSRSs
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 : Which one of the following is not a key attribute that is essential to perform an assurance service? a. Independence b. Accounting skills c. Established criteria or standards d. Subject matter knowledge
Last Answer : Accounting skills
Description : Assurance engagement risk is the risk a. Of expressing an inappropriate conclusion when the subject matter information is not materially misstated. b. That the practitioner expresses an inappropriate ... , adverse publicity, or other events arising in connection with a subject matter reported on
Last Answer : That the practitioner expresses an inappropriate conclusion when the subject matter information is materially misstated.
Description : Examples of circumstances that may create familiarity threat least likely include a. A member of the assurance team having an immediate family member or close family member who is a director or officer of ... d. Dealing in, or being a promoter of, share or other securities in an assurance client
Last Answer : Dealing in, or being a promoter of, share or other securities in an assurance client
Description : Examples of circumstances that may create familiarity threat least likely include a. A former partner of the firm being a director, officer of the assurance client or an employee in a ... a position to exert direct and significant influence over the subject matter of the assurance engagement
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 : A director, an officer or an employee of the assurance client in a position to exert direct and significant influence over the subject matter of the assurance engagement has been a member of the ... create a. Self-interest threat. b. Advocacy threat. c. Intimidation threat. d. Familiarity threat
Last Answer : Advocacy threat.
Description : The subject matter of an assurance engagement may include I. Historical or prospective financial information II. Internal controls III. Compliance with regulation a. I and II only b. I and III only c. II and III only d. I, II, and II
Last Answer : I, II, and II
Description : The subject matter of an assurance engagement can take the following forms except a. The entity’s internal control. b. Historical or prospective financial statements. c. Evaluation of a capital investment proposal. d. Performance of an entity that could indicate efficiency and effectiveness
Last Answer : Evaluation of a capital investment proposal.
Description : The Philippine Standards on Review Engagements (PSREs) are to be applied in a. The audit of historical financial information. b. Assurance engagements dealing with subject matters other ... of both historical and prospective financial information. d. The review of historical financial information.
Last Answer : The review of historical financial information.
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 : A review engagement differs in scope as compared to an audit due to a. The subject matter of the audit. b. The quantity and type of evidence obtained. c. Ethical requirements with respect to independence. d. The users of the financial statements
Last Answer : The quantity and type of evidence obtained
Description : .A review engagement differs in scope as compared to an audit due to a. The subject matter of the audit. b. The quantity and type of evidence obtained. c. Ethical requirements with respect to independence. d. The users of the financial statements.
Last Answer : The quantity and type of evidence obtained.
Description : Management's assertions in the financial statements are relevant to the audit process because: a. They provide evidence that auditors have prepared financial statements in accordance with GAAP b ... with the applicable reporting criteria d. They relate to regulator's expectations about audit results
Last Answer : They include representations of financial statements in accordance with the applicable reporting criteria
Description : Which statement is incorrect regarding procedures and evidence obtained in a review engagement? a. The auditor should apply judgment in determining the specific nature, timing and extent of review procedures. ... the needs of those relying on that information, not to the level of assurance provided
Last Answer : There is a greater risk that misstatements will not be detected in an audit than in a review.
Description : Reducing assurance engagement risk to zero is very rarely attainable or cost beneficial as a result of the following factors, except a. The use of selective testing. b. The fact that much ... d. The use of judgment in gathering and evaluating evidence and forming conclusions based on that evidence
Last Answer : The practitioner may not have the required assurance knowledge and skills to gather and evaluate evidence.
Description : Which of the following statements is true concerning evidence in an assurance engagement? a. The reliability of evidence is influenced not by its nature but by its source. b. Sufficiency is ... Appropriateness is the measure of the quality of evidence, that is, its reliability and persuasiveness.
Last Answer : Sufficiency is the measure of the quantity of evidence.
Description : Working papers prepared by a CPA in connection with an audit engagement are owned by the CPA, subject to certain limitations. The rationale for this rule is to a. Protect the ... d. Establish a continuity of relationship with the client whereby indiscriminate replacement of CPAs is discouraged.
Last Answer : Provide the CPA with evidence and documentation which may be helpful in the event of a lawsuit.
Description : The working papers prepared by a CPA in connection with an audit engagement are owned by the CPA, subject to certain limitations. The rationale for this rule is to a. Protect the ... d. Establish a continuity of relationship with the client whereby indiscriminate replacement of CPAs is discouraged
Last Answer : Provide the CPA with evidence and documentation which may be helpful in the event of a lawsuit
Description : The network firms are required to be independent of the client a. For assurance engagements provided to an audit client. b. For assurance engagements provided to clients that are not audit clients, ... the assurance report is expressly restricted for use by identified users. d. All of the above
Last Answer : For assurance engagements provided to an audit client
Description : Assurance engagements involve: a. Two separate parties: a professional accountant and intended users. b. Two separate parties: a professional accountant and a responsible party c. Three separate ... . d. Three separate parties: a professional accountant, a responsible party, and intended users
Last Answer : Three separate parties: a practitioner, a responsible party and intended users
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 : Examples of circumstances that may create self-interest threat include: a. Contingent fees relating to assurance engagements. b. A direct financial interest or material indirect financial interest in an assurance ... an assurance client or any of its directors or officers. d. All of the above
Last Answer : Three separate parties: a practitioner, a responsible party and intended users.
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 : 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 : Non-assurance engagements include all of the following services, except: a. Agreed-upon procedures engagements. b. Compilations of financial or other information. c. Management and tax consulting. d. Examination of prospective financial information
Last Answer : Examination of prospective financial information
Description : For assurance engagements which are neither audits nor reviews of historical financial information, the following standard applies: a. PSAs b. PSAEs c. PSREs d. PSRSs
Last Answer : PSAEs