Auditing and Assurance Principle
Concepts
Independent professional services that are intended to enhance the
credibility of information to meet the needs of an intended user. - ANSWhich of the following
statements best describes assurance services?
Compilation of financial information - ANSWhich of the following is not an assurance service?
Neutral criteria contribute to conclusions that are free from bias. - ANSSuitable criteria are
required for reasonably consistent evaluation or measurement of the subject matter of an
assurance engagement. Which of the following statements
concerning the characteristics of suitable criteria is correct?
Subject matter information - ANSIn an assurance engagement, the outcome of the evaluation or
measurement of a subject matter against criteria is called
Reasonable assurance engagement - ANSWhat type of assurance engagement is involved
when the practitioner expresses a positive form of conclusion?
Limited assurance engagement - ANSWhat type of assurance engagement is involved when the
practitioner expresses a negative form of conclusion?
Sufficiency is the measure of the quantity of evidence. - ANSWhich of the following statements
is true concerning evidence in an assurance engagement?
That the practitioner expresses an inappropriate conclusion when the
subject matter information is materially misstated. - ANSAssurance engagement risk is the risk
The practitioner may not have the required assurance knowledge and skills
to gather and evaluate evidence. - ANSReducing assurance engagement risk to zero is very
rarely attainable or cost beneficial as a result of the following factors, except
Defines and describes the elements and objectives of an assurance engagement, and identifies
engagements to which PSAs, PSREs, and PSAEs
apply. - ANSThe Philippine Framework for Assurance Engagements
Reviews of any historical financial information by a practitioner other than
the entity's auditor. - ANSPSRE 2400 (Engagements to Review Financial Statements), as
amended by the AASC in February 2008, applies to
, Obtain a general knowledge of the business and operations of the
entity. - ANSWhen performing a compilation engagement, the accountant is required to
Review - ANSInquiries and analytical procedures ordinarily form the basis for which type of
engagement?
The practitioner's conclusion is to be contained in a written report. - ANSA practitioner should
accept an assurance engagement only if
A belief that management and those charged with governance are honest
and have integrity relieves the auditor of the need to maintain professional
skepticism. - ANSThe auditor is required to maintain professional skepticism throughout the
audit. Which of the following statements concerning professional skepticism is false?
Different interests may exist between the company preparing the
statements and the persons using the statements. - ANSWhich of the following best describes
the reason why independent auditors report on financial statements?
The partner in charge of the engagement. - ANSWhich of the following professionals has
primary responsibility for the performance of an audit?
To serve as an independent, objective assurance and consulting activity that adds value to
operations. - ANSWhat is the proper organizational role of internal auditing?
A measure of management performance in meeting organizational goals. - ANSOperational
audits generally have been conducted by internal and COA auditors, but may be performed by
certified public accountants. A primary purpose of an operational audit is to provide
Compliance audit. - ANSWhich of the following terms best describes the audit of a taxpayer's
return by a BIR auditor?
Consulting services ordinarily involve external reporting. - ANSWhich of the following statements
concerning consulting services is false?
Accept the engagement but he/she should conduct research or consult with others to obtain
sufficient competence. - ANSWhich of the following is the most appropriate action to be taken by
a CPA who has been asked to perform a consulting services engagement concerning the
analysis of a potential
merger if he/she has little experience with the industry involved?
Specific operating units are functioning economically and efficiently. - ANSAn objective of a
performance audit is to determine whether an entity's
Concepts
Independent professional services that are intended to enhance the
credibility of information to meet the needs of an intended user. - ANSWhich of the following
statements best describes assurance services?
Compilation of financial information - ANSWhich of the following is not an assurance service?
Neutral criteria contribute to conclusions that are free from bias. - ANSSuitable criteria are
required for reasonably consistent evaluation or measurement of the subject matter of an
assurance engagement. Which of the following statements
concerning the characteristics of suitable criteria is correct?
Subject matter information - ANSIn an assurance engagement, the outcome of the evaluation or
measurement of a subject matter against criteria is called
Reasonable assurance engagement - ANSWhat type of assurance engagement is involved
when the practitioner expresses a positive form of conclusion?
Limited assurance engagement - ANSWhat type of assurance engagement is involved when the
practitioner expresses a negative form of conclusion?
Sufficiency is the measure of the quantity of evidence. - ANSWhich of the following statements
is true concerning evidence in an assurance engagement?
That the practitioner expresses an inappropriate conclusion when the
subject matter information is materially misstated. - ANSAssurance engagement risk is the risk
The practitioner may not have the required assurance knowledge and skills
to gather and evaluate evidence. - ANSReducing assurance engagement risk to zero is very
rarely attainable or cost beneficial as a result of the following factors, except
Defines and describes the elements and objectives of an assurance engagement, and identifies
engagements to which PSAs, PSREs, and PSAEs
apply. - ANSThe Philippine Framework for Assurance Engagements
Reviews of any historical financial information by a practitioner other than
the entity's auditor. - ANSPSRE 2400 (Engagements to Review Financial Statements), as
amended by the AASC in February 2008, applies to
, Obtain a general knowledge of the business and operations of the
entity. - ANSWhen performing a compilation engagement, the accountant is required to
Review - ANSInquiries and analytical procedures ordinarily form the basis for which type of
engagement?
The practitioner's conclusion is to be contained in a written report. - ANSA practitioner should
accept an assurance engagement only if
A belief that management and those charged with governance are honest
and have integrity relieves the auditor of the need to maintain professional
skepticism. - ANSThe auditor is required to maintain professional skepticism throughout the
audit. Which of the following statements concerning professional skepticism is false?
Different interests may exist between the company preparing the
statements and the persons using the statements. - ANSWhich of the following best describes
the reason why independent auditors report on financial statements?
The partner in charge of the engagement. - ANSWhich of the following professionals has
primary responsibility for the performance of an audit?
To serve as an independent, objective assurance and consulting activity that adds value to
operations. - ANSWhat is the proper organizational role of internal auditing?
A measure of management performance in meeting organizational goals. - ANSOperational
audits generally have been conducted by internal and COA auditors, but may be performed by
certified public accountants. A primary purpose of an operational audit is to provide
Compliance audit. - ANSWhich of the following terms best describes the audit of a taxpayer's
return by a BIR auditor?
Consulting services ordinarily involve external reporting. - ANSWhich of the following statements
concerning consulting services is false?
Accept the engagement but he/she should conduct research or consult with others to obtain
sufficient competence. - ANSWhich of the following is the most appropriate action to be taken by
a CPA who has been asked to perform a consulting services engagement concerning the
analysis of a potential
merger if he/she has little experience with the industry involved?
Specific operating units are functioning economically and efficiently. - ANSAn objective of a
performance audit is to determine whether an entity's
