Exercise PSA 220

What is the effective date for the Philippine Standard on Auditing 220?

• March 15, 2009

• June 30, 2010

• December 15, 2009

• January 1, 2008

Who is responsible for the overall quality on each audit engagement?

• Audit staff

• Audit firm

• Engagement quality control reviewer

• Engagement partner

What does the engagement quality control review process evaluate?

• The client's financial health

• The independence of the audit firm

• The significant judgments made by the engagement team

• The financial statements only

Which of the following is NOT a responsibility of the engagement partner?

• Direction and supervision of the audit engagement

• Performing all audit procedures personally

• Ensuring compliance with professional standards

• Reviewing audit documentation

What is the primary objective of the auditor according to PSA 220?

• To ensure financial statements are accurate

• To maintain client relationships

• To implement quality control procedures

• To issue the auditor's report

What is the role of the engagement quality control reviewer?

• To evaluate the significant judgments made by the engagement team

• To prepare the financial statements

• To perform the audit procedures

• To manage client relationships

Which of the following is a relevant ethical requirement?

• Profit maximization

• Market share growth

• Integrity

• Client satisfaction

What should the engagement partner do if they identify a threat to independence?

• Consult with the engagement team only

• Discuss it with the client

• Report it to the relevant person in the firm

• Ignore it

What is the purpose of monitoring in the quality control system?

• To assess the financial performance of the firm

• To provide assurance that quality control policies are effective

• To ensure compliance with tax regulations

• To evaluate client satisfaction

Which document should be read in conjunction with PSA 220?

• PSA 300

• PSA 200

• PSA 400

• PSA 500