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. Contains basic principles, essential procedures, and related guidance for the performance of assurance engagements. c. Establishes standards and provides procedural requirements for the performance of assurance engagements. d. Defines and describes the elements and objectives of an assurance engagement, and identifies engagements to which PSAs, PSREs, and PSAEs apply

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. Contains basic principles, essential
procedures, and related guidance for the
performance of assurance engagements.
c. Establishes standards and provides
procedural requirements for the
performance of assurance engagements.
d. Defines and describes the elements
and objectives of an assurance
engagement, and identifies
engagements to which PSAs, PSREs,
and PSAEs apply
by

1 Answer

Answer :

Defines and describes the elements
and objectives of an assurance
engagement, and identifies
engagements to which PSAs, PSREs,
and PSAEs apply
by

Related questions

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 Professional Accountants in the Philippines d. AASC's Engagement Standards (PSAs, PSREs, PSAEs, and PSRSs

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

The following contain basic principles, essential procedures and related guidance, consistent with the concepts in the Framework, for the performance of assurance engagements, except a. PSAs b. PSREs c. PSAEs d. PSRSs

Description : The following contain basic principles, essential procedures and related guidance, consistent with the concepts in the Framework, for the performance of assurance engagements, except a. PSAs b. PSREs c. PSAEs d. PSRSs

Last Answer : PSRSs

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

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

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 moderate level of assurance. b. When a professional accountant is engaged to perform an assurance engagement for which specific standards exist, those standards apply. c. It provides basic principles and essential procedures for engagements intended to provide a moderate level of assurance. d. If no specific standards exist for an assurance engagement, PSAE apply

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.

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 historical financial information. c. Compilation engagements and agreements to apply agreed-upon procedures to information. d. Assurance engagements dealing with subject matters other than 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.

Which of the following standards are to be applied to compilation engagements and engagements to perform agreed-upon procedures to information? a. PSRSs b. PSAs c. PSAEs d. PSREs

Description : Which of the following standards are to be applied to compilation engagements and engagements to perform agreed-upon procedures to information? a. PSRSs b. PSAs c. PSAEs d. PSREs

Last Answer : PSRSs

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 : 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.

Last Answer : Management consulting.

The Philippine Standards on Review Engagements (PSREs) are to be applied in a. The audit of historical financial informationb. Assurance engagements dealing with subject matters other than historical financial information. c. The review of both historical and prospective financial information. d. The review of historical financial information..

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.

Which of the following standards are to be applied, as appropriate, in the audit of historical financial information? a. PSAEs b. PSREs c. PSAs d. PSRSs

Description : Which of the following standards are to be applied, as appropriate, in the audit of historical financial information? a. PSAEs b. PSREs c. PSAs d. PSRSs

Last Answer : PSAs

Generally Accepted Auditing Standards (GAAS) and Philippine Standards on Auditing (PSA) should be looked upon by practitioners as a. Ideals to work towards, but which are not achievable. b. Benchmarks to be used on all audits, reviews, and compilations. c. Maximum standards which denote excellent work. d. Minimum standards of performance which must be achieved on each audit engagement.

Description : Generally Accepted Auditing Standards (GAAS) and Philippine Standards on Auditing (PSA) should be looked upon by practitioners as a. Ideals to work towards, but which are not achievable. b. ... excellent work. d. Minimum standards of performance which must be achieved on each audit engagement.

Last Answer : Minimum standards of performance which must be achieved on each audit engagement.

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 erring CPAs in audit practice. c. To promulgate auditing standards, practices and procedures that shall be generally accepted by the accounting profession in the Philippines. d. To undertake continuing research on both auditing and financial accounting in order to make them responsive to the needs of the public

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.

Though PSAs do not provide "hard and fast rules," they provide subjective guidance which allow the auditors to: a. Only apply those standards that are important to the audit. b. Use adequate professional judgment when applying the standards. c. Tailor their audit to procedures requested by management. d. Accurately interpret the Code of Ethics for CPAs

Description : Though PSAs do not provide "hard and fast rules," they provide subjective guidance which allow the auditors to: a. Only apply those standards that are important to the audit. b. Use ... Tailor their audit to procedures requested by management. d. Accurately interpret the Code of Ethics for CPAs

Last Answer : Use adequate professional judgment when applying the standards.

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 the evidence available to the CPA is persuasive rather than conclusive. c. The CPA’s conclusion provides a level of assurance about the subject matter. d. The responsible party expresses a conclusion that provides a level of assurance as to whether the subject matter conforms, in all material respects, with the identified suitable criteria

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.

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

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

Which statement is incorrect regarding the pronouncements of AASC? a. The PSAs and Interpretations may also have application, as appropriate, to other related activities of auditorsb. PSAs contain basic principles andessential procedures (identified in boldtype black lettering) together withrelated guidance in the form ofexplanatory and other material.c. PSAs need only be applied to materialmatters.d. The Interpretations have the sameauthority as the PAPSs

Description : Which statement is incorrect regarding the pronouncements of AASC? a. The PSAs and Interpretations may also have application, as appropriate, to other related activities of auditors b. PSAs contain basic ... be applied to material matters. d. The Interpretations have the same authority as the PAPSs

Last Answer : The Interpretations have the same authority as the PAPSs

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.

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.

In financial statement audits, the audit should be conducted in accordance with a. PAS / PFRS b. Generally accepted auditing standards c. Philippine Standards on Auditing d. Code of Ethics for CPAs in the Philippines

Description : In financial statement audits, the audit should be conducted in accordance with a. PAS / PFRS b. Generally accepted auditing standards c. Philippine Standards on Auditing d. Code of Ethics for CPAs in the Philippines

Last Answer : Philippine Standards on Auditing

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 engagement in ensuring that the conclusion of the professional accountant has value to the intended user? a. Integrity b. Confidentiality c. Professional competence d. Objectivity

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

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

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

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.

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.

The three commonly-sought types of assurance services are a. Audits, reviews, and compilations. b. Audits, reviews, and other assurance services. c. Audits, compilations, and other assurance services. d. Reviews, compilations, and other assurance services

Description : The three commonly-sought types of assurance services are a. Audits, reviews, and compilations. b. Audits, reviews, and other assurance services. c. Audits, compilations, and other assurance services. d. Reviews, compilations, and other assurance services

Last Answer : Audits, reviews, and other assurance services.

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

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

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.

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.

Engagement letters are widely used in practice for professional engagements of all types. The primary purpose of the engagement letter is toa. Remind management of its primaryresponsibility over the financialstatements.b. Satisfy the requirements of the Code ofProfessional Conduct for CPAs.c. Provide a starting point for the auditor'spreparation of the preliminary auditprogram.d. Provide a written record of theagreement with the client as to theservices to be provided.

Description : Engagement letters are widely used in practice for professional engagements of all types. The primary purpose of the engagement letter is to a. Remind management of its primary responsibility over the financial ... a written record of the agreement with the client as to the services to be provided.

Last Answer : Provide a written record of the agreement with the client as to the services to be provided.

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 under which the engagements was conducted. c. Identification of the criteria. d. Reference to the work of an expert

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

Which of the following is the authoritative body designated to promulgate auditing standards? a. Financial Reporting Standards Council b. PICPA c. Association of CPAs in Public Practice and PICPA d. Auditing and Assurance Standards Council

Description : Which of the following is the authoritative body designated to promulgate auditing standards? a. Financial Reporting Standards Council b. PICPA c. Association of CPAs in Public Practice and PICPA d. Auditing and Assurance Standards Council

Last Answer : Auditing and Assurance Standards Council

The auditor's judgment concerning the overall fairness of presentation of financial position, results of operation, and changes in cash flow is applied within the framework of a. Generally accepted auditing standards which include the concept of materiality b. Generally accepted accounting principles. c. Philippine Financial Reporting Standards d. Quality control

Description : The auditor's judgment concerning the overall fairness of presentation of financial position, results of operation, and changes in cash flow is applied within the framework of a. ... b. Generally accepted accounting principles. c. Philippine Financial Reporting Standards d. Quality control

Last Answer : Philippine Financial Reporting Standards

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 accounting profession because of their universal compliance. c. Procedures to be used to gather evidence to support financial statements. d. Measures of the quality of the auditor's performance

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

.As part of audit planning, CPAs should design audit programs for each individual audit and should include audit steps and procedures to a. Ensure that only material items are audited. b. Provide assurance that the objectives of the audit are met. c. Detect and eliminate fraud. d. Increase the amount of management information available

Description : .As part of audit planning, CPAs should design audit programs for each individual audit and should include audit steps and procedures to a. Ensure that only material items are audited. b. Provide ... are met. c. Detect and eliminate fraud. d. Increase the amount of management information available

Last Answer : Provide assurance that the objectives of the audit are met.

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

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

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. Accounting Standards Board. b. Financial Reporting Standards Committee. c. Financial Reporting Standards Council. d. Auditing and Assurance Standards Council.

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.

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 Public Accountants (PICPA) b. Auditing and Assurance Standards Council (AASC) c. Financial Reporting Standards Council (FRSC) d. Education Technical Council (ETC)

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)

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

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

The subject matter of an assurance engagement can take the following forms except a. The entity’s internal control. b. Historical or prospective financial statementsc. Evaluation of a capital investment proposal. d. Performance of an entity that could indicate efficiency and effectiveness.

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.

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 criteria. b. An engagement conducted to provide a moderate level of assurance that the subject matter is plausible in the circumstances. c. An engagement in accordance with the Philippine Standard on Assurance Engagement(s). d. An engagement to perform agreedupon procedures

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.

The following are modifications made to the IFAC Code to consider Philippine regulatory requirements and circumstances, except a. The period for rotation of the lead engagement partner was changed from five to seven years. b. Advertising and solicitation by individual professional accountants in public practice were not permitted in the Philippines. c. Additional examples relating to anniversaries and websites wherein publicity is acceptable, as provided in boa resolution 19, series of 2000, were included. d. Payment and receipt of commissions were not permitted in the Philippines

Description : The following are modifications made to the IFAC Code to consider Philippine regulatory requirements and circumstances, except a. The period for rotation of the lead engagement partner was changed from ... , were included. d. Payment and receipt of commissions were not permitted in the Philippines

Last Answer : The period for rotation of the lead engagement partner was changed from five to seven years.

Which of the following statements about independent financial statement audit is correct? a. The audit of financial statements relieves management of its responsibilities for die financial statements. b. An audit is designed to provide limited assurance that the financial statements taken as a whole are free from material misstatement. c. The auditor's opinion is not an assurance as to the future viability of the entity as well as the effectiveness and efficiency withwhich management has conductedthe affairs of the entity.d. The procedures required to conduct anaudit in accordance with PSAs shouldbe determined by the client whoengaged the services of the auditor

Description : Which of the following statements about independent financial statement audit is correct? a. The audit of financial statements relieves management of its responsibilities for die financial statements. b. An ... with PSAs should be determined by the client who engaged the services of the auditor

Last Answer : The auditor's opinion is not an assurance as to the future viability of the entity as well as the effectiveness and efficiency withwhich management has conducted the affairs of the entity.

PSRE 2400 (Engagements to Review Financial Statements), as amended by the AASC in February 2008, applies to a. Reviews of any historical financial information of an audit client. b. Reviews of historical financial or other information by a practitioner other than the entity's auditor. c. Reviews of historical financial or other information of an audit client. d. Reviews of any historical financial information by a practitioner other than the entity's auditor.

Description : PSRE 2400 (Engagements to Review Financial Statements), as amended by the AASC in February 2008, applies to a. Reviews of any historical financial information of an audit client. b. Reviews of ... d. Reviews of any historical financial information by a practitioner other than the entity's auditor.

Last Answer : Reviews of any historical financial information by a practitioner other than the entity's auditor.

.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

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

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 : 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

Last Answer : Philippine Standards on Auditing

Which of the following statements is true? a. Assurance engagements do not require independence. b. The term “auditor” is broader in scope compared to the term “practitioner.” c. Assurance engagements performed by professional accountants are intended to enhance the credibility of information. d. The degree or level of assurance that may be provided by the practitioner is inversely related to the scope of procedures performed and their results

Description : Which of the following statements is true? a. Assurance engagements do not require independence. b. The term auditor is broader in scope compared to the term practitioner. c. Assurance ... be provided by the practitioner is inversely related to the scope of procedures performed and their results

Last Answer : Assurance engagements performed by professional accountants are intended to enhance the credibility of information.

Operational audits generally have been conducted by internal and COA auditors, but may be performed by certified public accountants. A primary purpose of an operational audit is to provide: a. A measure of management performance in meeting organizational goalsb. The results of internal examinations of financial and accounting matters to a company's top-level management. c. Aid to the independent-auditor, who is conducting the examination of the financial statements. d. A means of assurance that internal accounting controls are functioning as planned.

Description : Operational audits generally have been conducted by internal and COA auditors, but may be performed by certified public accountants. A primary purpose of an operational audit is to provide: ... statements. d. A means of assurance that internal accounting controls are functioning as planned

Last Answer : A measure of management performance in meeting organizational goals

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 on providing assurance on the assertions contained in the financial statements of a public company. c. Review engagements focus on providing advice in a three-party contract. d. Review engagements focus on providing limited assurance on financial statements of a private company

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

An auditor may accept an engagement to perform specified procedures on the specific subject matter of specified elements, accounts, or items of a financial statement if a. The report does not list the procedures performed. b. The auditor is also the entity's continuing auditor. c. The financial statements are prepared in accordance with a special purpose framework. d. Use of the report is restricted

Description : An auditor may accept an engagement to perform specified procedures on the specific subject matter of specified elements, accounts, or items of a financial statement if a. The report does not list ... are prepared in accordance with a special purpose framework. d. Use of the report is restricted

Last Answer : Use of the report is restricted

Assurance engagements encompass the following types of services, except: a. Audit of historical financial statements. b. Review engagements. c. Management consulting. d. Attestation 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.