1.

Engagements for the purpose of expressing an opinion on internal control differ from the CPA’s
evaluation of internal control as part of a financial audit in that-
CONTROL STUCTURE
2. The following are elements of a report on factual finding of procedures except-
statement that the opinion expressed relates only to the elements, accounts, items o5r financial
and non-financial
3. Practitioners independence-
Helps achieve public confidence
4. A correct relationship among the auditor. The client and the external user are
- the external users can rely
5. Which of the following would be an assurance engagement?
-Conducting and external audit
6. A structural representation of historical information including related notes
- Financial statements
7. To be independent the audito
r-IMPARTIAL
8. Which of the following statement exemplifies positive assurance-
In our opinion of internal control
9. Which of the following is an assurance statement regarding assurance services-
Decision Makers?

10. Which of the following is an incorrect-

Auditing evaluates evidences regarding assurance
11. Philippine Standard on auditing issued by AASC –
Apply to the independent
12. Reasonable Assurance means-
CORROBORATING
13. The word Auditing comes from the Latin word audire which means-
TO HEAR
14. Arel’ CPA-
List of the procedures performed (or reference thereto) and Mill’s findings
15. To make the internal audit Dept independent he should report directly to the-
audit committee
16. Which statement is incorrect regarding reviews and related services (compilation and agreed upon
procedures
- IN A COMPILATION THE CPA IS ENGAGED TO USE ACCOUNTING EXPERTISE AS OPPOSED TO
AUDITING EXPERTISE TO seLLECT
17. An audit involves ascertaining the degree of correspondence between assertions and established
criteria. In the case of financial statement audit, which of the following is not valid
- Philippine standard on auditing
18. Of the following statements which one does not describe a distinction between the auditing
standards and the attestation standard.-
in performing an attest engagement, the CPA need not be independent.
19. Which of the following would provide the strongest evidence in terms of appropriate – During an
inventory count

20. An audit has inherent limitations that affect auditor’s ability to detect material misstatements .
Which of the following is among the factors that result to these inherent limitation

- inherent limitations of accounting and internal control system

21. When engaged to compile the financial statements of an entity an accountant is required to possess
a level of knowledge of an entity’s accounting principles and practices. This requirement most likely
will include obtaining a general understanding of the-
Internal control awareness of an entity’s senior management
22. The Philippine Standards on auditing should be looked upon by practitioners are –
standards or performance which must achieved on each audit engagements
23. The following statements related to Philippine Standards on Auditing, Choose statement that best
describe the meaning PSAs-
Acts to be performed by the professional Accountatnts
24. Which of the following best describes the function of aasc –
To promulgate auditing standards practice and procedures that shall be generally accepted by the
accounting profession in the Philippines
25. Which of the following is incorrect regarding the “three part relationship “ Element of assurance
engagement-
Professional accountants as those persons who are members of an IFAC member body, which
should be in public practice
26. Professional skepticism dictates that when management makes a statement to the auditor, the
auditor should-
Corroborate
27. A CPA while performing on audit, Strives to achieve independence in appearance in order to.-
maintain public confidence in the profession
28. Correct -Review engagement
29. Which of the following factors is least likely to influence the appropriateness of audit evidence-
Cost of evidence
30. Which of the following would provide the weakest evidence in terms of appropriateness- Clients
report on absolete inventory
31. Which of the following is not one of the elements of assurance engagements-
Suitable opinion
32. Which of the following statements is true regarding analytical procedures in a review engagement-
Analytical procedures involve the use of both financial and nonfinancial data.
33. The auditors judgement concerning the overall fairness of the presentation of financial position
result of operations and changes in financial positions is applied within the framework of- internal
control
34. Which of the following is a correct statement relating to the theoretical framework of auditing-the
financial data to be audited can be verified
35. Of the following statement which one is not a precondition for performing attest services- the
practitioner must be a certyified public accountatnt
36. The following are assurance engagement except- tax consulting
37. which of the following is not an attestations standard?-
The report shall state,,,,,
38. WHICH OF THE FOLLOWING IS THE LEAST LIKELY TO BE CONSIDERED SUBJECT MATTER OF AN
ATTESTATION Engagement- assertion
39. Which of the following is least likely to be included in an agreed-upon procedures attestation
engagement report- Limited assurance on the information presented
40. Which of the following statements is(are true- III only