[Progress Check 01-1] Overview of Assurance Engagement

What is the purpose of the Philippine Framework for Assurance Engagements?

• To define and describe the elements and objectives of an assurance engagement

• To provide a frame of reference for practitioners and others involved with assurance engagements

• To develop the International Standards on Quality Control

• To establish standards and procedural requirements for assurance engagements

What does the Philippine Framework for Assurance Engagements not establish?

• Standards for the performance of assurance engagements

• Procedural requirements for the performance of assurance engagements

• Guidance for the development of ISAs, ISREs, and ISAEs

• Basic principles for professional accountants

What are the fundamental ethical principles that all professional accountants are required to observe?

• Integrity, Objectivity, Professional competence and due care, Confidentiality, Professional behavior

• Integrity, Objectivity, Professional competence and due care, Confidentiality, Independence

• Integrity, Objectivity, Professional competence and due care, Independence, Professional behavior

• Integrity, Objectivity, Professional competence and due care, Independence, Confidentiality

What is the definition of an assurance engagement?

• An engagement in which a practitioner expresses a conclusion designed to enhance the degree of confidence of the intended users

• An engagement in which a practitioner expresses a conclusion designed to enhance the degree of confidence of the responsible party

• An engagement in which a practitioner prepares tax returns for an entity

• An engagement in which a practitioner evaluates the financial statements of an entity

What are the two types of assurance engagement?

• Audit engagement and review engagement

• Reasonable assurance engagement and advisory engagement

• Limited assurance engagement and consulting engagement

• Reasonable assurance engagement and limited assurance engagement

What are the three separate parties involved in assurance engagements?

• Practitioner, responsible party, and regulators

• Practitioner, responsible party, and intended users

• Practitioner, responsible party, and internal auditors

• Practitioner, responsible party, and external auditors

What are the characteristics of suitable criteria for an assurance engagement?

• Relevance, Completeness, Reliability, Neutrality, Consistency

• Relevance, Completeness, Reliability, Consistency, Understandability

• Accuracy, Completeness, Reliability, Neutrality, Understandability

• Relevance, Completeness, Reliability, Neutrality, Understandability

What should the practitioner do if there is a significant limitation on the scope of the work in an assurance engagement?

• Believe the engaging party intends to associate the practitioner's name with the subject matter

• Pursue any matter that leads the practitioner to question whether a material modification should be made to the subject matter information

• Change the engagement to a non-assurance engagement

• Disregard evidence obtained prior to the change

What is the main objective of an audit engagement?

• To express an opinion on the financial statements

• To provide consulting services to the entity

• To prepare tax returns for the entity

• To evaluate the internal controls of the entity

What distinguishes a review engagement from an audit engagement?

• The level of assurance provided

• The scope of work performed

• The type of entity being engaged

• The reporting requirements