Description : For which of the following services is a CPA professional not required to be independent? a. Tax returns preparation b. Audits of historical financial statements c. Review engagement d. Examination of a forecast
Last Answer : Tax returns preparation
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 : Which of the following is the broadest and most inclusive concept? a. Audits of financial statements. b. Internal control audit. c. Assurance services. d. Compilation services
Last Answer : Assurance services
Description : The type of assurance that is provided by the CPA on a compilation report is: a. Limited assurance. b. No assurance. c. Low assurance. d. Negative assurance
Last Answer : No assurance
Description : The type of assurance that is provided by the CPA on a compilation report is: a. Limited assurance. b. No assurance. c. Low assurance. d. Negative assurance.
Description : For which of the following services is a CPA professional required to be independent? a. Audits of historical financial statements b. Review services c. Examination of prospective financial statements d. All of the above
Last Answer : All of the above
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 : 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 : 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 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.
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.
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 : 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 : 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 : Which of the following best describes the purpose of the engagement letter? a. The engagement letter conveys to management the detailed steps to be applied in the audit process. b. The engagement letter ... be signed by both the client and the CPA and should be used only for independent audits
Last Answer : By clearly defining the nature of the engagement, the engagement letter helps avoid and resolve misunderstandings between CPA and client regarding the precise nature of the work to be performed and the type of report to be issued
Description : When management refuses to disclose in the financial statements noncompliance to laws and regulations which are identified by the independent auditor, the CPA may be charged with unethical conduct for ... and regulations during the prior audits. d. Reporting these activities to the audit committee.
Last Answer : Issuing a disclaimer of opinion
Description : Which of the following statements is true? a. An independent auditor must be a CPA. b. Compliance audits are conducted to determine adherence to rules and regulations set by the auditor. c. ... s report, the primary responsibility on the fairness of the financial statements is shifted to the auditor
Last Answer : An independent auditor must be a CPA.
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 : 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 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 : 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 : 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
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.
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 : 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 : A CPA firm is considered independent when it performs which of the following services for a publicly traded audit client? a. Serving as a member of the client's board of directors. b. ... approved by the board of directors. d. Determining which accounting policies will be adopted by the client
Last Answer : Tax return preparation as approved by the board of directors.
Description : Compliance with the independence requirement is necessary whenever a CPA performs: a. Non-assurance services b. Professional services c. Tax consultancy services d. Assurance services
Description : A CPA firm is considered independent when it performs which of the following services for a publicly-traded audit client? a. Serving as a member of the client's board of directors. b. ... information system design and implementation. d. Tax return preparation as approved by the board of directors.
Description : The CPA must not subordinate his or her professional judgment to that of others in every a. Engagement. b. Audit engagement. c. Engagement except tax services. d. Engagement except managementadvisory services
Last Answer : Engagement
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 : The Code of Ethics would be violated if a CPA accepted a fee for services and the fee was: a. Fixed by a public authority. b. Based on a price quotation submitted in competitive bidding. c. ... in a tax matter. d. Payable after a specified finding was attained in a review of financial statements
Last Answer : Payable after a specified finding was attained in a review of financial statements
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 : Which of the following is not likely a quality control procedure on consultation? a. Identifies areas and specialized situations where consultation is required and encourages personnel to consult ... the result of consultation in those areas and specialized situations where consultation is required
Last Answer : Assigns an appropriate person or persons to be responsible for assigning personnel to 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 is essential that users regard CPA firms as a. Competent. b. Unbiased. c. Technically proficient. d. All of the above
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 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 : 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 : The CPA should not undertake an engagement if his fee is to be based upon a. A percentage of audited net income. b. Per diem rates plus expenses. c. The findings of a tax authority. d. The complexity of the service rendered
Last Answer : A percentage of audited net income
Description : When performing a compilation engagement, the accountant is required to a. Make inquiries of management to assess the reliability and completeness of the information provided. b. Assess internal controls. ... explanations. d. Obtain a general knowledge of the business and operations of the entity.
Last Answer : Obtain a general knowledge of the business and operations of the entity.