WRITING AOM Pre and Post Test Session No. 2

1.      An AOM is the verbal communication provided to the concerned head of office informing deficiencies noted in the audit of accounts.

• a.      True

• b.      False

Answer explanation

WRITTEN

2.      To whom do we address the AOM?

• A.      Management

• B.      Auditee Head

• C.      Concerned Officers

• D.      Auditee Head and Concerned Officer/s

3.      The Auditor shall issue an AOM (Form 1) for observations relating to financial/operational deficiencies such as accounting, internal control, or property management that do not involve pecuniary loss.

• a.      True

• b.      False

4.      What is the Constitutional Mandate of COA?

• a.      Article X-D

• b.      Article IX-D

• c.      Article XII-D

• d. Article XIII-D

5.      The COA functions include the following, except?

• a.      Examine, audit, and settle

• b. Keep the general accounts

• c.      Adopt measures for deficiencies

• d. Define the scope of the audit

6.    The auditor’s independence refers to the freedom from bias, external control, or influence that ensures auditors are impartial, make judgments based on evidence, and are free from conflicts of interest while conducting audits.

• a.    True

• b.    False

7.    Due professional care requires the auditor to exercise professional skepticism, an attitude that includes a questioning mind and a critical assessment of audit evidence and to use the knowledge, skill, and ability called by the profession of public accounting diligently.

• a.    True

• b.    False

8.    Efficient means being able to “do the right things.” It refers to the achievement of objectives. It involves an assessment of the outcomes of the department/bureau/regional office programs and outputs of the program which accrue to the public, measured in terms of performance measures or targets.

• a.    True

• b.    False

9.    Effective means being able to “do things right” given the available resources/inputs and within a specified timeframe. This is about delivering a given quantity and quality of outputs with minimum inputs or maximizing outputs with a given quantity and quality of inputs.

• a.    True

• b.    False

10.    Economical means being able to conform to the norms of conduct and ethical standards as contained in RA No. 6713 dated 20 February 1989, otherwise known as the “Code of Conduct and Ethical Standards for Public Officials and Employees.

• a.    True

• b.    False