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 : 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 : 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 : 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 : 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 primary deliverable of an engagement to perform based on procedures prescribed by the intended user of the report is/are: a. The Review Report b. Report of Factual Findings c. Management Letter d. The financial statements
Last Answer : Report of Factual Findings
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 : 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 : An engagement to perform agreed-upon procedures may involve the auditor in performing certain procedures concerning I. Individual items of financial data. II. A single financial statement. III. A complete set of financial statements. ... only b. II and III only c. I and III only d. I, II, and III
Last Answer : I, II, and III
Description : The objective of a review of financial statements is to: a. Express an opinion on the overall financial statements. b. Carry out audit procedures agreed on with the client and other users of ... statements are not presented fairly. d. Assist the client in the preparation of the financial statements.
Last Answer : State whether anything has come to the auditor's attention that indicates that the financial statements are not presented fairly.
Description : Which of the following is true of the report based on agreed-upon-procedures? a. The report is restricted to those parties who have agreed to the procedures to be performed. b. The CPA ... . d. The report should state that the procedures performed are limited to analytical procedures and inquiry
Last Answer : The report is restricted to those parties who have agreed to the procedures to be performed
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 : 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 : 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 : 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
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 : What assurance is provided by the auditor in an agreed-upon procedures engagement? a. No assurance. b. Low. c. Moderate. d. Reasonable
Last Answer : No assurance
Description : What assurance is provided by the auditor in an agreed-upon procedures engagement? a. No assurance. b. Low. c. Moderate. d. Reasonable.
Last Answer : No assurance.
Description : At the beginning of the current audit engagement, the auditor should perform key preplanning activities which include all of the following except: a. Performing procedures regarding client acceptance ... c. Establishing an understanding of the terms of the engagement. d. Considering internal contro
Last Answer : Considering internal contro
Description : Which of the following procedures would an auditor be most likely to perform in planning a financial statement audit? a. Reviewing investment transactions of the audit period to determine ... the minutes of stockholder and director meetings to discover whether any unusual transactions have occurred.
Last Answer : Performing analytical procedures to identify areas that may represent specific risks.
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 : 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 : The element of the audit planning process most likely to be agreed upon with the client before implementation of the audit strategy is the determination of the a. Procedures to be undertaken to discover ... opinion. d. Pending legal matters to be included in the inquiry of the client's attorney.
Last Answer : Timing of inventory observation procedures to be performed
Description : The element of the audit planning process most likely to be agreed upon with the client before implementation of the audit strategy is the determination of the a. Timing of inventory observation ... assessments. d. Pending legal matters to be included in the inquiry of the client's attorney
Last Answer : Timing of inventory observation procedures to be performed.
Description : Non-assurance engagements include all of the following except a. Compliance audit. b. Management consulting. c. Agreed-upon procedures. d. Preparation of tax returns where no conclusion is expressed.
Last Answer : Compliance audit.
Description : An engagement to apply agreed-upon procedure engagement may be accepted, provided a. The CPA has audited the financial statements of the client. b. The CPA is independent with respect to the client. ... involved. d. The adequacy of the procedures to be performed will be determined by the CPA.
Last Answer : The distribution of the report will be limited only to specified parties involved.
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 : 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 : .If specific information comes to an auditor's attention that implies the existence of possible illegal acts that could have a material, but indirect effect on-the financial statements, the auditor ... d. Discuss the evidence with the client's audit committee, or others with equivalent authority.
Last Answer : Apply audit procedures specifically directed to ascertaining whether an illegal act has occurred
Description : Choose one of the following which would describe best the phrase "generally accepted auditing standards": a. They identify the policies and procedures for the conduct of the audit. b. They define the ... d. They set forth a measure a measure of the quality of the performance of audit procedures.
Last Answer : They set forth a measure a measure of the quality of the performance of audit procedures.
Description : Which of the following is the most likely first step an auditor would perform at the beginning of an initial audit engagement? a. Prepare a rough draft of the financial statements and of ... and review the work of the predecessor auditor prior to discussing the engagement with the client management
Last Answer : Tour the client's facilities and review the general records
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 : Which of the following is an element of "directing an audit assistant" objective? a. Identifying in advance the staffing requirements of a particular audit engagement. b. Resolving any ... . Informing assistants of their responsibilities and the objectives of the procedures they are to perform
Last Answer : Informing assistants of their responsibilities and the objectives of the procedures they are to perform
Description : A CPA is conducting the first audit of a client's financial statements. The CPA hopes to reduce the audit work by consulting with the predecessor auditor and reviewing the predecessor's working papers. ... to a new engagement. d. Acceptable if the client and the predecessor auditor agree to it.
Last Answer : Acceptable if the client and the predecessor auditor agree to it.
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 : 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 : 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 : The principal reason for developing a written audit program is to help assure that the a. Audit work is properly supervised. b. Audit report contains only significant findings. c. Audit work is properly planned and documented. d. Work of different auditors is properly coordinated
Last Answer : Audit work is properly planned and documented
Description : As used in auditing, which of the following statements best describes "assertions ? a. Assertions are the auditor's findings to be communicated in his audit report. b. Assertions are ... Assertions are the representations of management as to the fairness of presentation of the financial statements
Last Answer : Assertions are the representations of management as to the fairness of presentation of the financial statements
Description : Which of the following actions would be an appropriate response by companies to improve the public's perception of their financial reporting? a. Requiring internal auditors to report all significant ... external and internal auditing work separated to maintain independence. d. None of the above.
Last Answer : Increased adoption of audit committees.
Description : The most important function of operational audit report is to: a. Direct management to take specified actions. b. State the auditor’s opinion or conclusion. c. Report findings and recommendations. d. Report the objective of the audit
Last Answer : Report findings and recommendations.
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 : 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 : In connection with the examination of financial statements, an independent auditor could be responsible for failure to detect a material fraud if a. Accountants performing important parts of the ... . The fraud was perpetrated by one client employee, who circumvented the existing internal control
Last Answer : The auditor planned the work in a hasty and inefficient manner.