WorksheetsPRE2-AACA
Total questions: 10
Worksheet time: 5mins
It is a systematic process by which a competent, independent person objectively obtains and evaluates evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and communicating the results to interested users.
Accounting
Costing
Auditing
Auditor
It means the auditor makes a critical assessment, with a questioning mind, of the validity ofaudit evidence obtained.
Reasonable Assurance
Professional Skepticism
Integrity
Fairness
It is the chance that an auditor will fail to find material misstatements that exist in an entity's financial statements.
Material Misstatement
Audit Risk
Insufficient Time
Detection Risk
Generally means the combination of audit approach to be used, resources management and allocation, timing of the audit, and the way how the audit engagement is managed.
Audit Planning
Audit Strategy
Audit Engagement
Reasonable Assurance
I. An accounting system is a series of tasks and records of an entity by which transactions are processed as a means of maintaining financial records. Such systems identify, assemble, analyze, calculate, classify, record, summarize and report transactions and other events.
II. Accounting control includes, but is not limited to, plan of organization and the procedures and records that are concerned with the decision processes leading to management’s authorization of transactions.
Both True
Both False
Only Statement I is True
Only Statement II is True
Philippine Standard on Auditing (PSA)
I. Establishes the independent auditor’s overall responsibilities when conducting an audit of financial statements.
II. Sets out the overall objectives of the independent auditor.
III. Explains the nature and scope of an audit.
All statements are true
Only statements I and II are true
Only statements I and III are true
All statements are false
In conducting an audit of financial statements, the overall objectives of the auditor are:
I. To obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement.
II. To report on the financial statements, and communicate as required by the PSAs, in accordance with the auditor’s findings.
Only statement I is true
Only statement II is true
Both false
Both true
Limitations of an audit
I. Higher cost burden
II. Based on estimates
III. Based on the information provided by the auditor
All statements are true
Only statements I and II are true
Only statements II and III are true
Only statement II is true
I. A material misstatement is information in the financial statements that is sufficiently incorrect that it may impact the economic decisions of someone relying on those statements.
II. Audit risk is the chance that an auditor will fail to find material misstatements that exist in an entity's financial statements.
Both true
Both false
Only statement I is true
Only statement II is true
Includes the governance and management functions and the attitudes, awareness, and actions of those charged with governance and management concerning the entity's internal control and its importance in the entity.
The Control Environment
Control Activities
Monitoring of Controls
Audit Assurance
