1. As used in auditing, which of the following statements best describes “assertions”?

>Assertions are the representations of management as to fairness of the financial statement

2. Which of the following may be an assurance engagement that is Direct reporting engagement?

>Practitioner provides assurance as to the proper handling of customer concerns of a clerk in a

department store, in line with established Customer Service Guidelines in the industry

3. Assurance services may improve all of the following except:

>Periodicity

4. In assurance engagement, a criteria is made available to the intended users by the following except:

>Through inclusions in the corporate policy available for all top management of the company

5.Elements in assurance engagement includes the following except:

>Professional Skepticism

6. Which evidence is more reliable?

>Evidence from personal observation/experience

7. Which of the following would best described as an assurance service?

>Offering an opinion concerning the accuracy of statements made on a client’s web site relating to the
clients online privacy policies

8. Which of the following should not be included in an accountant’s standard report based up the
compilation of an entity’s financial statement?

> A statement that the accountant does not express an opinion but expresses only limited assurance on
the financial statements

9. A suitable criteria contains the attribute of relevance when:

> The criteria presented are pertaining to the subject matter being evaluated that assists decision-
making by intended users

10. The single feature that most clearly distinguishes auditing attestation and assurance is

>Scopes of services

11. Accepting an engagement to compile A financial projection for a publicly held company most likely
would be inappropriate if the projection were to be distributed to

>all stockholders of record as of the report date

12. a compilation of prospective financial statements involves all of the following except

>performing analytical procedures

13. during a compilation of a non public entities financial statements an accountant would be least likely
to

>perform analytical procedures designed to identify relationships that appear to be unusual

14. which of the following statements best distinguishes a forecast from a projection

>a forecast reflects conditions expected to exist whereas a projection presents financial position results
of operations and cashflows given one or more hypothetical assumptions

15. absolute assurances provided for in

>none of the choices

16. which of the following would an accountant not need to know when conducting a compilation ?

>the accountant would need to know all of the listed items when conducting a compilation

17. A CPA’s report on agreed upon procedures related to management's assertion about that entities
compliance with specified requirements should contain

>a statement of limitations on the use of the report

18. which of the following audits can be regarded as generally being a compliance audit?

>BIR agents examinations of taxpayer returns

19. which of the following procedures is not necessary in conducting a review of interim financial
information ?

>confirmation of significant customer accounts receivable as of the interim balance sheet of date

20. in assessing audit risk the CPA needs to do all of the following except

>gather audit evidence in support of recorded transactions

21. which of the following procedures is usually included in a review engagement of a non public entity?

>an inquiry concerning subsequent events

22. if an accountant concludes that an audited financial statements on which the accountant is
disclaiming an opinion also lacked adequate disclosure the accountant should suggest appropriate
revision. if the client does not accept the content suggestion the content should?

>describe the appropriate revision to the financial statements in the accountant’s disclaimer of opinion

23.the statement that nothing came to our attention which would indicate that these statements are
not fairly presented expresses is which of the following?

>negative assurance

24. which of the following experiences by a certified public accountant may be qualified as meaningful in
compliance with die requirements off RA No. 9298?

>II and IV only

25. The profession's ethical standards would most likely be considered to have been violated when the
CPA represents that specific consulting services will be performed for a stated fee and it is apparent at
the time of the representation that the

>actual fee would be substantially higher

26.which of the following fee arrangements is in violation of the code of ethics for professional
accountants?

>a fee based on whether the CPAs report on the client's financial statements results in the approval of a
bank loan

27.Which statement is not true with regards to professional fees of a professional accountant in public
practice?

>a professional account on should receive a referral fee from another professional accountant who
refers a client who needs a service that is not offered by the latter

28. Which of the following statements is true with regards to accreditation for public accounting
practice?

>one of the requirements for the application of an individual for practice of public accounting is a sworn
statement by the CPA which states among others that he or she had not been found guilty by a
competent court and or administrative body of any case involving moral turpitude and or unethical
practices

29. because an external auditor is paid a fee by a client company he or she:

>may be sufficiently independent to conduct an audit

30. a violation of the professionS ethical standards would most likely have occurred when a CPA

>you should an unqualified opinion on the 2019 financial statements when pieces for the 2018 audit
were unpaid

31. CPAs in public practice who perform assurance engagements are governed by the following except

>Philippine standards on related services

32. CPAs are prohibited from which of the following forms of advertising ?

>use of phrases such as guaranteed largest tax refunds in town

33. in determining estimates of fees an auditor may take into accounts each of the following except the

>attainment of specific findings

34. which of the following can be significantly affected by an audit

>information risk

35.which of the following statements is not a distinction between independent auditing and internal
auditing?
>although independent auditors strive for both validity and relevance of evidence internal auditors are
concerned almost exclusively with validity

36. which of the following statements about the study of auditing is not true ?

the study of auditing focuses on learning the rules techniques and computations required to analyze
financial statements

37.which of the following statements is not true with respect to assurance ,attest and audit services?

>Disservices are applied only to financial statements an financial statement accounts

38.an audit to determine whether an entity is following specific procedures or rules set down by some
higher authority is classified as an

>compliance audit

39. the trait that distinguishes auditors from accountants is the

>auditors accumulation an interpretation of evidence related to a company's financial statements

40. the scope and nature of an auditor's contract all obligation to a client is ordinarily set forth in the

>engagement letter

41. when an auditor submits a document containing audited financial statements to a client the auditor
has the responsibility to report on

>all of the information included in the document

42. which of the following best describes the objective of audit of the financial statements

>to express an opinion whether the financial statements are prepared in all material respects with an
identified financial reporting framework

43.a typical objective of an operational audit is to determine whether an entity’s

>specific operating units are functioning efficiently and effectively

44. as used in auditing which of the following statements best describes assertions

>assertions are the representations of management as to the fairness of the financial statement

45. an audit of historical financial statements is most often performed to determine whether the

>none of these choices

46. the agency problem may result from a manager's concern about any of the following except

>corporate goals

47. providing quantitative information that management and others can use to make decisions is the
function of

>accounting
48. in the context of agency theory information asymmetry refers to the idea that

>management has more information about the entities through financial position than to the absentee
owners

49. according to the ethical standards of the profession which of the following acts is generally
prohibited

>retaining client records after an engagement is terminated prior to completion and the client has
demanded the return

50. an accounting Association established a code of ethics for all members. The most like the primary
purpose for establishing the code of ethics was to

>outline criteria for professional behavior to maintain standards of competence morality honesty and
dignity within the Association

76. For private companies, accounting firms are prohibited from providing

>none of these

77. FALSE - The board shall submit to the Commission the ratings obtained by each candidate within 10
working days after the examination unless extended for just cause.

TRUE - Any candidate who fills in two complete certified public accountant board examinations should
be disqualified from taking another set of examinations unless he or she submits evidence to the
satisfaction of the board that he or she enrolled in and completed at least 24 units of subject given in
the licensure examination

78. FALSE - technical competence -30 units (area B) includes standards applicable to professional
practice (18 units ) loss rules and regulations affecting professional practice (6 units )and environment of
the practice (6 units )

FALSE - Professional values ethics and attitudes (5 units )(area a) includes social responsibility principles
and interventions

79. TRUE - A permanent exempt registered professional shall be allowed to renew his or her license
without complying with the CPD requirements upon his or her accomplishment and submission of the
necessary papers an upon payment of the annual registration fee for the three years for as long as he or
she continues to be out of the country.

TRUE - under PRC resolution 2019 1146 (amending the IR of CPD Act of 2016 ) professionals working
overseas are not covered by the CPD requirements

80. False -Any person applying for examination show establish the requisites to the satisfaction of the
board that he or she is a naturalized citizen

False -marriage Contract in NSO security paper for married male applicants is one of the supportive
document needed for examination application
81. True -A professional identification card bearing the registration number date of issue once expiry
date duly signed by the chairperson of the Commission shall likewise be issued to every registrant
renewable every three years

False -meaningful experience is needed for CPAs in academe or education show include teaching for at
least two trimesters or two semester subjects in other financial accounting business law and tax auditing
problems, auditing theory , financial management and management services

82. True- PRBOA solution no 262 series of 2015 effectively charge the scope of each of the following
examination

False - Continuing professional development refers to the inculcation assimilation and acquisition of
knowledge skills proficiency an ethical and moral values before the initial registration of a professional
that raise and enhance the professionals technical skills and competence

83. TRUE- Fury components of practical examinations are infused to their problem solving counterparts
practical accounting problems and theory of accounts what do you think you re another thing problems

FALSE - business law is now separated from taxation and the subject is termed regulatory framework
for business laws