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Audit Theory Review

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

The following are regarded by RA 9298 as CPA services in public practice if offered or rendered on a fee basis and to more than one client, except:

a)

Preparation and signing of audit reports

b)

Professional assistance on accounting procedures.

c)

Representation of clients before governmental agencies on tax and other maters regardless of its relation to accounting

d)

Holding out oneself as one skilled in the knowledge, science and practice of accounting and as a qualified person to render professional services as a CPA.

2.

An individual just entering upon an auditing career must obtain professional experience primarily in order to achieve a:

a)

Positive quality control review

b)

Favorable peer review

c)

Seasoned judgment

d)

Specialty designation by the PICPA

3.

Pursuant to RA9298, who owns audit working papers?

a)

The Auditor

b)

The Client

c)

The audit client and the auditor have common (joint) ownership

d)

The Philippine Securities and Exchange Commission

4.

The BOA has the power to conduct an oversight into the quality of audits of financial statements through a review of the quality control measures instituted by auditors in order to ensure compliance with the accounting and auditing standards and practices. This power of the BOA is called

a)

Quality Review

b)

Peer Review

c)

Appraisal

d)

Quality Contro

5.

Which of the following is not an objective of RA 9298?

a)

The standardization and regulation of accounting education

b)

The examination for registration of CPAs

c)

The supervision, control, and regulation of the practice of accountancy in the Philippines

d)

The development and improvement of accounting standards that will be general accepted in the Philippines

6.

Which of the following is not represented in the AASC?

a)

BOA

b)

BSP

c)

FINEX

d)

SEC

7.

The fundamental principle of integrity requires a CPA to

a)

Be straightforward and honest in performing professional services.

b)

Be fair and should not allow prejudice or bias, conflict of interest or influence of others to override objectivity.

c)

Perform professional services with due care, competence and diligence.

d)

Act in a manner consistent with the good reputation of the profession and refrain from any conduct which might bring discredit to the profession.

8.

The fundamental principle requires a CPA not to use or disclose information acquired during the course ofperforming professional services without proper and specific authority.

a)

Objectivity

b)

Professional behavior

c)

Professional competence and due care

d)

Confidentiality

9.

These are policies and procedures designed to eliminate or to reduce threats to fundamental principles to an acceptable level.

a)

Internal controls

b)

Safeguards

c)

Control activities

d)

Segregation of duties

10.

Under the Revised Code, which fundamental principle is explicitly mentioned to be safeguarded even as the CPA consults with relevant professional bodies and legal advisors

a)

Technicality

b)

Confidentiality

c)

Integrity

d)

Objectivity