ONLINE ASSIGNMENT #1
ONLINE ASSIGNMENT #2
Multiple Choice. Select the best answer.
1. Which of the following is incorrect regarding
the general principles of an audit?
a. The auditor should comply with the “Code of
Ethics for Professional Ethics for Certified Public
Accountants” promulgated by the Philippine
Professional Regulation Commission.
b. The auditor should conduct an audit in
accordance with PSAs.
c. The auditor should plan and perform an audit
with an attitude of professional skepticism
recognizing that circumstances may exist that
cause the financial statements to be materially
misstated.
d. The auditor would ordinarily expect to find
evidence to support management
representations and assume they are
necessarily correct.
2. 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. Moderate
d. Absolute
3. Which of the following government agencies
is represented both to the Auditing Standards
and Practices Council and the Auditing and
Assurance Standards Council?
a. Bangko Sentral ng Pilipinas
b. Bureau of Internal Revenue
c. Securities and Exchange Commission
d. Commission on Higher Education
4. A member of the BOA shall, at the time of
his/her appointment, possess the following
qualifications, except
a. Must be a natural-born citizen and resident
of the Philippines.
b. Must be a duly registered CPA with more
than ten (10) years of work experience in any
scope of practice of accountancy.
c. Must be of good moral character and must
not have been convicted of crimes involving
moral turpitude.
d. Must not be a director or officer of the APO
at the time of his/her appointment.
5. Existing accountant, as defined in the Code of
Ethics, means
a. A professional accountant employed in
industry, commerce, the public sector or
education.
b. A professional accountant in public practice
currently holding an audit appointment or
carrying out accounting, taxation, consulting or
similar professional services for a client.
c. Those persons who hold a valid certificate
issued by the Board of Accountancy.
d. A sole proprietor, or each partner or person
occupying a position similar to that of a partner
and each staff in a practice providing
professional services to a client irrespective of
their functional classification (e.g., audit, tax or
consulting) and professional accountants in a
practice having managerial responsibilities.
6. Which of the following is incorrect regarding
integrity and objectivity?
a. Integrity implies not merely honesty but fair
dealing and truthfulness.
b. The principle of objectivity imposes the
obligation on all professional accountants to be
fair, intellectually honest and free of conflicts of
interest.
c. Professional accountants serve in many
different capacities and should demonstrate
their objectivity in varying circumstances.
d. Professional accountants should neither
accept nor offer any gifts or entertainment.
7. In a review engagement, the independent
accountant’s procedures include:
a. Examining bank reconciliation.
b. Confirming accounts receivable with debtors.
c. Reading the financial statements to consider
whether they appear to conform with GAAP.
d. Obtaining a letter of audit inquiry from all
attorneys of record.
8. Which of the following is not a basic element
of a review report?
a. Title of the report
b. Client’s address
c. Introductory paragraph
d. Auditor’s address
9. The objective and scope of the audit and the
extent of the auditor’s responsibilities to the
client are best documented in
a. Independent auditor’s report
b. Audit engagement letter
c. Client’s representation letter
d. Audit program
10. Which of the following actions may be
appropriate if the auditor is unable to agree to a
change of the engagement and is not permitted
to continue the original engagement?
I. Issue a qualified opinion due to a significant
scope limitation.
II. Auditor should withdraw from the
engagement.
III. Consider whether there is any obligation to
report to the board of directors or shareholders
the circumstances necessitating withdrawal
a. I only
b. I and II
c. II and III
d. I, II and III