ACC114: Assurance Principles, Professional Ethics, and Governance

Quiz #1 - Part 3

AUDITING OVERVIEW, PROFESSIONAL STANDARDS & AUDITOR'S RESPONSIBILITY

31. The person responsible for the audit engagement and its performance and for the auditor's report that is
issued in behalf of the firm is the
a. quality control reviewer c. client's management |
b. engagement partner d. audit manager Ch2 #37

32. Which of the following is an element of a CPA firm's quality control systrem that should be considered in
establishing its quality control policies and procedures?
a. Complying with laws and regulations c. Independence |
b. Using statistical sampling techniques d. Consideration of audit risk and materiality Ch2 #38

33. Which of the following is oine of the elements of a CPA firm's quality control system?
a. Leadership responsibilities c. Control activities |
b. Computer assisted audit techniques d. Control environment Ch2 #40

34. The objective of the quality control policies to be adopted by an audit firm will ordinarily incorporate all of
the following except:
a. Risk assessment c. Engagement performance |
b. Leadership responsibilities d. Human resources Ch2 #36

35. Which of the following pronouncements issued by AASC is designed to resolve issues relating to PSAs?
a. Philippine Auditing Practices Statements |
b. Interpretations
c. Statements of Auditing Standards in the Philippines
d. Generally Accepted Auditing Standards Ch2 #27

The Philippine Standards on Auditing can be described as

36.
a. providing very specific guidance about the specific activities an auditor must perform on each
e engagement
b. similar to Philippine Financial Reporting Standards (PFRS)
c. defining the minimum standards of performance for an auditor
d. providing assurance that an auditor will not issue inappropriate audit opinion Ch2 #23

37. Which of the following does not pertain to the standards of fieldwork?
a. Adequate planning and supervision |
b. Obtaining sufficient competent evidential matter
c. Proper study and evaluation of internal control as a basis for reliance thereon
d. Technical training and proficiency Ch2 #10

38. While performing services for their clients, professional accountants have always had a duty to provide a
level of care which is
a. Reasonable. c. Superior. |
b. Greater than average. d. Guaranteed to be free from error. Ch2 #11

39. The third standard of fieldwork states that sufficient competent evidential matter may in part be obtained
through the following methods except
 a. inspection c. confirmation |
b. observation d. reconciliation Ch2 #13

40. Which of the following underlies the application of generally accepted auditing standards, particularly the
standards of fieldwork and reporting?
a. Element of internal control c. Element of reasonable assurance |
b. Elements of materiality and risk d. Element of corroborating evidence Ch2 #3

41. Which of the following best describes what is meant by generally accepted auditing standards?
a. Audit objectives generally determined on audit engagement |
b. Acts to be performed by the auditor.
c. Measures of the quality of the auditor's performance.
d. Procedures to be used to gather evidence to support financial statements. Ch2 #4

42. The procedures deemed necessary in the circumstances to achieve the objective of a financial statement
audit shall be determined by the
a. Client management c. Internal Auditor |
b. Independent auditor d. Those charged with governance Ch1 #65

43. Which of the following limitations of an audit?

a. Nature of evidence obtained c. Confidentiality of information |
b. Inadequacy of information d. Scope limitations imposed by the entity Ch1 #63

44. Which of the following statements does not properly describe an element of theoretical framework of
auditing?
a. The data to be audited can be verified |
b. Short-term conflicts may exist between managers who prepare the data and auditors who examine the
c. Auditors act on behalf of the management
d. An audit benefits the public Ch1 #56

45. The need for independent audits of financial statements can be attributed to all of the following conditions
except:
a. remoteness c. complexity of subject matter |
b. consequence d. validity Ch1 #52