PRINCIPLES OF AUDITING AND OTHER
ASSURANCE SERVICES 2026 MODULE REVIEW
EXAM
◉ B. Answer: Which one of the following relates to delegation
objective of quality control?
a. The firms creates a group that provides technical training to audit
staff.
b. There is to be a sufficient direction, supervision, and review of
work at all levels to provide
reasonable assurance that the work performed meets appropriate
standards of quality.
c. Assignment of work to the more qualified personnel.
d. Whenever necessary, consultation within or outside the firm is to
occur with those who have appropria
◉ A. Answer: Which of the following is (are) helpful in
communicating audit directions?
I. Audit Program
II. Overall Audit Plan
III. Time Budgets
,a. All of the above
b. I and II
c. I only
d. None of the above
◉ C. Answer: Generally Accepted Auditing Standards (GAAS) and
Philippine Standards on Auditing (PSA)
should be looked upon by practitioners as:
a. Ideals to work towards, but which are not achievable
b. Maximum standards which denote excellent work.
c. Minimum standards of performance which must be achieved on
each audit engagement.
d. Benchmark to be used on all audits, reviews, and compilations.
◉ D. Answer: Which of the following best describes what is meant
by Generally Accepted Auditing
Standards?
a. Pronouncements issued by the Auditing Standards and Practices
Council.
b. Procedure to be used to gather evidence to support financial
statements.
c. Rules acknowledged by the accounting profession because of their
universal compliance.
,d. Measures of the quality of the auditor's performance
◉ D. Answer: An auditor need not abide by an auditing standard if
the auditor believes that
a. The amount is immaterial
b. The requirement of the standard is impractical to perform
c. The requirement of the standard is impossible to perform
d. Any of the three above is correct.
◉ A. Answer: A CPA should comply with applicable generally
accepted auditing standards on every
engagement
a. Without exception
b. Except in examinations that result in a qualified report
c. Except in engagements where the CPA is associated with
unaudited financial statements.
d. Except in examinations of interim financial statements.
◉ B. Answer: I. To exercise due professional care the auditor should
examine all available corroborating
evidences supporting management's assertions.
, II. The proper attitude of an auditor who is performing an
examination in accordance with GAAS should be professional
responsiveness.
III. GAAS means rules acknowledged by the accounting profession
because of their universal application.
a. True; False; False
b. False; False; False
c. True; True; True
d. True; False; True
◉ D. Answer: A CPA is most likely to refer to one or more of the three
general auditing standards in
determining
a. The nature of the CPA's auditing qualification.
b. The scope of the CPA's auditing procedures.
c. Requirements for the review of internal control.
d. Whether the CPA should undertake an audit engagement.
◉ A. Answer: The general standards stress the importance of
a. The personal qualities which the auditor should have
b. Evidence accumulation
c. Communicating the auditor's finding to the reader
ASSURANCE SERVICES 2026 MODULE REVIEW
EXAM
◉ B. Answer: Which one of the following relates to delegation
objective of quality control?
a. The firms creates a group that provides technical training to audit
staff.
b. There is to be a sufficient direction, supervision, and review of
work at all levels to provide
reasonable assurance that the work performed meets appropriate
standards of quality.
c. Assignment of work to the more qualified personnel.
d. Whenever necessary, consultation within or outside the firm is to
occur with those who have appropria
◉ A. Answer: Which of the following is (are) helpful in
communicating audit directions?
I. Audit Program
II. Overall Audit Plan
III. Time Budgets
,a. All of the above
b. I and II
c. I only
d. None of the above
◉ C. Answer: Generally Accepted Auditing Standards (GAAS) and
Philippine Standards on Auditing (PSA)
should be looked upon by practitioners as:
a. Ideals to work towards, but which are not achievable
b. Maximum standards which denote excellent work.
c. Minimum standards of performance which must be achieved on
each audit engagement.
d. Benchmark to be used on all audits, reviews, and compilations.
◉ D. Answer: Which of the following best describes what is meant
by Generally Accepted Auditing
Standards?
a. Pronouncements issued by the Auditing Standards and Practices
Council.
b. Procedure to be used to gather evidence to support financial
statements.
c. Rules acknowledged by the accounting profession because of their
universal compliance.
,d. Measures of the quality of the auditor's performance
◉ D. Answer: An auditor need not abide by an auditing standard if
the auditor believes that
a. The amount is immaterial
b. The requirement of the standard is impractical to perform
c. The requirement of the standard is impossible to perform
d. Any of the three above is correct.
◉ A. Answer: A CPA should comply with applicable generally
accepted auditing standards on every
engagement
a. Without exception
b. Except in examinations that result in a qualified report
c. Except in engagements where the CPA is associated with
unaudited financial statements.
d. Except in examinations of interim financial statements.
◉ B. Answer: I. To exercise due professional care the auditor should
examine all available corroborating
evidences supporting management's assertions.
, II. The proper attitude of an auditor who is performing an
examination in accordance with GAAS should be professional
responsiveness.
III. GAAS means rules acknowledged by the accounting profession
because of their universal application.
a. True; False; False
b. False; False; False
c. True; True; True
d. True; False; True
◉ D. Answer: A CPA is most likely to refer to one or more of the three
general auditing standards in
determining
a. The nature of the CPA's auditing qualification.
b. The scope of the CPA's auditing procedures.
c. Requirements for the review of internal control.
d. Whether the CPA should undertake an audit engagement.
◉ A. Answer: The general standards stress the importance of
a. The personal qualities which the auditor should have
b. Evidence accumulation
c. Communicating the auditor's finding to the reader
