WorksheetsAudSpec M0 Review Questions
Total questions: 20
Worksheet time: 6mins
What is the primary focus of auditing for specialized industries?
Preparing tax returns
Performing IT consulting services
Assessing financial statement assertions with industry-specific considerations
Recording daily transactions
Which of the following is a regulatory body overseeing banks in the Philippines?
BIR
SEC
BSP
PCAOB
Which professional standard governs auditing in the Philippines?
IFRS
PSA
GAAP
COSO
Which concept ensures an auditor avoids relationships that impair objectivity?
Accuracy
Consistency
Transparency
Independence
The SEC primarily regulates which entities?
Corporations and publicly listed companies
Barangay cooperatives
A key distinction of a specialized audit is:
Standardized scope and uniform procedures
Tailored approach based on the industry’s risks and regulations
Less need for documentation
Only internal processes are reviewed
What does PCAOB stand for?
Philippine Committee for Accounting Oversight Board
Public Company Accounting Oversight Board
Private Corporate Accounting and Operations Bureau
Public Corporate Audit Operations Bureau
In specialized industry audits, risk assessment is typically influenced by:
Employee benefits
Industry-specific regulations and operations
Financial statement formats
Office location
One limitation of the subject 'Auditing and Assurance for Specialized Industries' is that it:
Excludes auditing techniques
Focuses only on BIR audits
Covers selected industries with significant audit complexities
Is not recognized by CHED
Which regulatory body supervises insurance companies in the Philippines?
BSP
SEC
Insurance Commission
CDA
Which of the following PSAs is most applicable in planning a specialized industry audit?
PSA 520 – Analytical Procedures
PSA 300 – Planning an Audit of Financial Statements
PSA 250 – Consideration of Laws and Regulations
PSA 500 – Audit Evidence
The BIR’s role in audits mainly focuses on:
Operational efficiency
Tax compliance and collection
Quality control of financial statements
Cooperative loan audits
What differentiates general audit from specialized audit?
Specialized audit applies tailored procedures to a specific industry's risks and controls
General audit is broader in coverage and complexity
General audit requires more ethical training
Specialized audit avoids sampling techniques
Which of the following is a critical professional trait in conducting any audit, particularly in regulated industries?
Aggressiveness
Familiarity threat
Independence in mind and appearance
Materiality judgment
A cooperative audit would require specific compliance based on which regulatory agency?
BSP
SEC
PCAOB
CDA
In a risk-based approach for specialized audits, which of the following is a primary consideration?
The internal budget of the audit team
Entity-level controls and sector-specific risks
The number of employees
Uniform audit report formats
Which regulatory body enforces rules for publicly listed companies in the United States that also affect cross-listed Philippine companies?
SEC-PH
BIR
PCAOB
CDA
An auditor working in the banking sector should be knowledgeable about the:
Manual of Regulations for Banks (MORB)
Tax Code
Civil Service Code
Labor Code
Which scenario illustrates a breach of independence in a specialized industry audit?
Auditor attends a client’s annual party
Auditor is auditing a bank where his brother is the CFO
Auditor reviews financial statements from another branch
Auditor shares a technical guide with a client
A key feature of auditing insurance companies is the assessment of:
Physical inventory
Loan covenants
Payroll compliance
Actuarial assumptions and reserve estimation
