Auditing and Assurance Principles

The preface to to the Philippine Standards on Quality Control, Auditing, Other Assurance and Related Services is issued to facilitate understanding of the

I. Objectives and operating procedures of the Auditing and Assurance Standards Council (AASC).

II. Scope and authority of the documents issued by the AASC.

• I only

• II only

• Both I and II

• Neither I nor II

Its mission is the promulgation of auditing standards, practices and procedures which shall be generally accepted by the accounting profession in the Philippines

• Financial Reporting Standards Council (FRSC).

• Auditing and Assurance Standards Council (AASC).

• International Federation of Accountants (IFAC).

• Philippine Institute of Public Accountants (PICPA).

Which of the following are collectively referred to as "Engagement Standards"?

• PSAs and PSREs

• PSAs, PSREs and PSAEs

• PSAs, PSREs, PSAEs, PSRSs and PSRSs

• PSAs, PSREs, PSAEs, PSRSs and PSQCs

Which of the following Philippine Standards are to be applied to compilation engagements,

engagements to apply agreed-upon procedures to information and other related services engagements as specified by the AASC?

• PSAs

• PSAEs

• PSRSs

• PSREs

These are issued to provide interpretive guidance and practical assistance to professional accountants in implementing PSAs and to promote good practice.

• PAPSs

• Practical Statements

• PRSPSs

• PAEPSs

I. Professional accountants should be aware of and consider Practice Statements applicable to the engagement.

II. A professional accountant who does not consider and apply the guidance included in a relevant Practice

Statement need not explain how the basic principles and essential procedures in the Engagement

Standard(s) addressed by the Practice Statement have been complied with

• Both statements are true

• Both statements are false

• True; False

• False, True

Which of the following statements best describes assurance services?

• Independent professional services that are intended to enhance the credibility of information to meet the needs of an intended user.

• Services designed to express an opinion on the fairness of historical financial statements based on the results of an audit.

• The preparation of the financial statements or the collection, classification, and

  summarization of other financial information.

• Services designed for the improvement of operations, resulting in better outcomes.

The following statements relate to the two types of assurance engagements that a practitioner is

permitted to perform: reasonable assurance engagement and limited assurance engagement.

Statement I. The objective of a reasonable assurance engagement is a reduction in assurance engagement risk to an

acceptably low level in the circumstances of the engagement as a basıs for a positive form of expression

of the practitioner's conclusion

Satement II. The objective of a limited assurance engagement is a reduction in assurance engagement risk to a level

that is acceptable in the circumstances of the engagement, but where the risk is greater than for a

reasonable assurance engagement, as the basis for a positive of expression of the practitioner's conclusion.

Staement III. The objective of a reasonable assurance engagement is a reduction in assurance engagement risk to an

acceptably low level in the circumstances of the engagement as the basis for a negative form of expression of the practitioner's conclusion.

• False, True, True

• True, False, False

• True, True, True

• False, False

I. Philippine Framework for Assurance Engagements defines and describes the elements and

objectives of an assurance engagement, and identifies engagements to which PSAs, PSREs and PSAEs

apply.

II. The Philippine Framework for Assurance Engagements is not itself establish standards or provide

procedural requirements for the performance of assurance engagements

• Both statements are true

• Both statements

• True; False

• False; True

A practitioner who is engaged to perform an assurance engagement other than an audit or a review

of historical financial information should comply with which of the following standards?

• PSAEs

• PSAEs and PSAs

• PSAs and PSRES

• PSAEs, PSREs and PSAs