INTACC FINAL EXAM (LATEST ) GRADED A+ WITH
ANSWERS (ALL 50 QUESTIONS)
BSP have issued supervisory guidance regarding sound banking practices for
disclosures and for other areas of bank activities. At the same time, the auditor
considers whether the assertions in the financial statements are consistent with the
auditor's knowledge of the business. The following are the procedures that both
auditors and the BSP perform; except,
a. obtaining evidence regarding the operation of the internal control system
b. express an opinion over the financial statements of the bank
c. the review of the quality of a bank's assets and the assessment of banking risks
d. the performance of analytical procedures - ANSWER: b. express an opinion over
the financial statements of the bank
The percentage-of-completion method affects three components of the income
statement: earned revenue, cost of earned revenue, and gross profit.
TRUE
FALSE - ANSWER: FALSE
The challenge facing the construction sector is that, regardless of the economic
climate, contracting can be precarious.
TRUE
FALSE - ANSWER: TRUE
The auditor considers the appropriateness of the valuation of real properties owned
or acquired is related to presentation and disclosure
TRUE
FALSE - ANSWER: FALSE
The auditor considers the appropriateness of the valuation of real properties owned
or acquired is related to presentation and disclosure
TRUE
FALSE - ANSWER: TRUE
Construction projects represent considerable financial risk for both the owner and
the contractor.
TRUE
FALSE - ANSWER: TRUE
,Banks typically have a wide diversity of activities, which means that it is sometimes
difficult for an auditor to fully understand the implications of particular transactions.
TRUE
FALSE - ANSWER: TRUE
If construction businesses want to generate sustainable profits, they need to get the
price right and tendering lowest bid as possible.
TRUE
FALSE - ANSWER: TRUE
Solvency risk refers to the risk of losing business because of negative public opinion
and consequential damage to the bank's reputation arising from failure to properly
manage some of the above risks, or from involvement in improper or illegal activities
by the bank or its senior management, such as money laundering or attempts to
cover up losses.
TRUE
FALSE - ANSWER: FALSE
The zero-profit method is based on the premise that revenue is earned and should
be recognized as the project is completed.
TRUE
FALSE - ANSWER: FALSE
In percentage-of-completion method of recording construction revenue, revenues
and expenses are equal.
TRUE
FALSE - ANSWER: FALSE
Deposit liabilities are reported as current assets by the bank.
TRUE
FALSE - ANSWER: FALSE
The objective of an audit of financial statements is to enable the auditor to express
an unqualified opinion whether the financial statements are prepared, in all material
respects, in accordance with generally accepted accounting principles in the
Philippines.
TRUE
FALSE - ANSWER: FALSE
, The The auditor often carries out procedures based on the types of activities the
entity carries out and the way in which those activities affect the financial statement
assertions.
TRUE
FALSE - ANSWER: TRUE
No two signatures of one individual are exactly identical.
TRUE
FALSE - ANSWER: TRUE
Banking risks increase with the degree of concentration of a bank's exposure to any
one customer, industry, geographic area or country.
TRUE
FALSE - ANSWER: TRUE
Banks have custody and control of negotiable instruments and other assets that are
readily transferable in electronic form, thus, liquidity characteristics of these items
make banks vulnerable to misappropriation and fraud.
TRUE
FALSE - ANSWER: TRUE
Banks assets are frequently changing in value, thus, a relatively small decrease in
asset values may have a significant effect on their capital and potentially on their
regulatory solvency.
TRUE
FALSE - ANSWER: TRUE
In an IT-intensive environment such as banks, most processing controls are
programmed controls.
TRUE
FALSE - ANSWER: TRUE
Auditing by testing the input and output of a computer system instead of the
computer program itself will detect all program errors regardless of the nature of the
output.
TRUE
FALSE - ANSWER: FALSE
ANSWERS (ALL 50 QUESTIONS)
BSP have issued supervisory guidance regarding sound banking practices for
disclosures and for other areas of bank activities. At the same time, the auditor
considers whether the assertions in the financial statements are consistent with the
auditor's knowledge of the business. The following are the procedures that both
auditors and the BSP perform; except,
a. obtaining evidence regarding the operation of the internal control system
b. express an opinion over the financial statements of the bank
c. the review of the quality of a bank's assets and the assessment of banking risks
d. the performance of analytical procedures - ANSWER: b. express an opinion over
the financial statements of the bank
The percentage-of-completion method affects three components of the income
statement: earned revenue, cost of earned revenue, and gross profit.
TRUE
FALSE - ANSWER: FALSE
The challenge facing the construction sector is that, regardless of the economic
climate, contracting can be precarious.
TRUE
FALSE - ANSWER: TRUE
The auditor considers the appropriateness of the valuation of real properties owned
or acquired is related to presentation and disclosure
TRUE
FALSE - ANSWER: FALSE
The auditor considers the appropriateness of the valuation of real properties owned
or acquired is related to presentation and disclosure
TRUE
FALSE - ANSWER: TRUE
Construction projects represent considerable financial risk for both the owner and
the contractor.
TRUE
FALSE - ANSWER: TRUE
,Banks typically have a wide diversity of activities, which means that it is sometimes
difficult for an auditor to fully understand the implications of particular transactions.
TRUE
FALSE - ANSWER: TRUE
If construction businesses want to generate sustainable profits, they need to get the
price right and tendering lowest bid as possible.
TRUE
FALSE - ANSWER: TRUE
Solvency risk refers to the risk of losing business because of negative public opinion
and consequential damage to the bank's reputation arising from failure to properly
manage some of the above risks, or from involvement in improper or illegal activities
by the bank or its senior management, such as money laundering or attempts to
cover up losses.
TRUE
FALSE - ANSWER: FALSE
The zero-profit method is based on the premise that revenue is earned and should
be recognized as the project is completed.
TRUE
FALSE - ANSWER: FALSE
In percentage-of-completion method of recording construction revenue, revenues
and expenses are equal.
TRUE
FALSE - ANSWER: FALSE
Deposit liabilities are reported as current assets by the bank.
TRUE
FALSE - ANSWER: FALSE
The objective of an audit of financial statements is to enable the auditor to express
an unqualified opinion whether the financial statements are prepared, in all material
respects, in accordance with generally accepted accounting principles in the
Philippines.
TRUE
FALSE - ANSWER: FALSE
, The The auditor often carries out procedures based on the types of activities the
entity carries out and the way in which those activities affect the financial statement
assertions.
TRUE
FALSE - ANSWER: TRUE
No two signatures of one individual are exactly identical.
TRUE
FALSE - ANSWER: TRUE
Banking risks increase with the degree of concentration of a bank's exposure to any
one customer, industry, geographic area or country.
TRUE
FALSE - ANSWER: TRUE
Banks have custody and control of negotiable instruments and other assets that are
readily transferable in electronic form, thus, liquidity characteristics of these items
make banks vulnerable to misappropriation and fraud.
TRUE
FALSE - ANSWER: TRUE
Banks assets are frequently changing in value, thus, a relatively small decrease in
asset values may have a significant effect on their capital and potentially on their
regulatory solvency.
TRUE
FALSE - ANSWER: TRUE
In an IT-intensive environment such as banks, most processing controls are
programmed controls.
TRUE
FALSE - ANSWER: TRUE
Auditing by testing the input and output of a computer system instead of the
computer program itself will detect all program errors regardless of the nature of the
output.
TRUE
FALSE - ANSWER: FALSE
