Our Lady of Fatima University ACCTG 16 SET 2 1)These are independent professional services that improve the quality of information for decision-making

Question

Our Lady of Fatima University

ACCTG 16

SET 2

1)These are independent professional services that improve the quality of information for decision-making.

1. Audit services
2. Assurance services
3. Attestation services
4. Management consultancy

Which of the following types of audits is performed most frequently by CPAs on a fee basis and for more than one client?
1. Government audits
2. Compliance audits
3. Internal audits
4. Financial statement audits

The independent auditor lends credibility to client financial statements by
1. Stating in the auditor’s management letter that the examination was made in accordance with PSAs
2. Attaching an auditor’s opinion to the client’s financial statements.
3. Testifying under oath about client financial statements.
4. Maintaining clear-cut distinctions between management representations and auditor’s representations.

Internal auditing relates to an
1. Audit which is performed by a practitioner as an independent contractor.
2. Audit which is incidentally concerned with the detection and prevention of fraud.
3. Audit which serves the needs of management
4. Audit wherein the auditor should be independent of management both in fact and in mental attitude

Independent auditors cannot be totally independent
1. Because they don’t audit financial statements
2. Since they do not possess the CPA license
3. As long as employer-employee relationship exists
4. Unless their immediate supervisor is a CPA

The Philippine Standards on Auditing issued by the Auditing and Assurance Standards Council (AASC)
1. Must be followed in all situations.
2. Are interpretations of generally accepted auditing standards
3. Are optional guidelines which an auditor may choose to follow or not follow when conducting an audit.
4. Are the equivalent of laws for audit practitioners.

The auditor's best defense when material misstatements in the financial statements are not uncovered in the audit is that
1. The financial statements are client's responsibility.
2. The audit was conducted in accordance with PSAs
3. Client is guilty of contributory negligence.
4. The audit was conducted in accordance with generally accepted accounting principles.

The auditor considers materiality from:
1. AASC perspective
2. Client perspective
3. Independence perspective
4. Reasonable user perspective

Which of the following is more difficult to evaluate objectively?
1. Compliance with government regulations
2. Efficiency and effectiveness of operations
3. All of the above are equally difficult
4. Presentation of financial statements in accordance with the PFRS

The practitioner makes a critical assessment of validity of audit evidence, with a questioning mind and being alert to conditions which may indicate possible misstatement due to error or fraud.
1. Objectivity and integrity
2. Professional skepticism
3. Independence is mental attitude
4. Sufficient appropriate evidence

In the auditing environment, failure to meet the PSAs is often
1. An accepted practice.
2. A suggestion of negligence.
3. Conclusive evidence of negligence.
4. Tantamount to criminal behavior.

The following phrases relate to the definition of auditing. Which one is incorrect?
1. Systematic process
2. Objectively obtaining and obtaining evidence
3. Assertions about economic actions and events
4. Degree of correspondence between assertions and GAAS

Non-assurance engagements include all of the following except
1. Compliance audit.
2. Management consulting.
3. Agreed-upon procedures.
4. Preparation of tax returns where no conclusion is expressed.

The subject matter of an assurance engagement can take the following forms except
1. The entity’s internal control.
2. Historical or prospective financial statements.

1. Evaluation of a capital investment proposal.
2. Performance of an entity that could indicate efficiency and effectiveness.

In performing an assurance engagement, a professional accountant typically
1. Provides management consulting advice.
2. Supplies litigation support services.
3. Assesses control risk at a low level.
4. Expresses a conclusion about an assertion.

Which of the following is not an assurance engagement?
1. Risk Assessment Service
2. Information System Reliability Service
3. Business Performance Measurement
4. Management Consulting Service

The three commonly-sought types of assurance services are
1. Audits, reviews, and compilations.
2. Audits, reviews, and other assurance services.
3. Audits, compilations, and other assurance services.
4. Reviews, compilations, and other assurance services.

Which of the following statements is true?
1. Assurance engagements do not require independence.
2. The term “auditor” is broader in scope compared to the term “practitioner.”
3. Assurance engagements performed by professional accountants are intended to enhance the credibility of information.
4. The degree or level of assurance that may be provided by the practitioner is inversely related to the scope of procedures performed and their results.

Which of the following forms may be the subject matter of assurance engagements?
1. Behavior
2. Historical financial information
3. Systems and processes
4. All of the above

Engagement risk is influenced by the risks associated with the following except
1. Nature and form of the subject matter.

1. Nature and form of the criteria applied to the subject matter.
2. Unreasonably low professional fee.
3. Nature and extent of the process used to collect and evaluate evidence.

Absolute assurance is not attainable as a result of such factors as:
1. The use of judgment.
2. The use of selective testing.
3. The inherent limitations of control systems.
4. All of the above

If the auditor learns that an entity is inappropriately using the auditor’s name in association with financial information, he/she should:
1. Remain silent.
2. Seek legal advice if necessary.
3. Require management to cease doing so.
4. Inform any known third party users of the inappropriate use of his/her name in connection with the information.

1. A CPA should not submit unaudited financial statements of a non-public entity to a client or others unless, as a minimum, the CPA complies with the provisions applicable to
  1. Audit engagements.
  2. Review engagements.
  3. Assurance engagements.
  4. Compilation engagements.

You own Dude, Inc., which manufactures wooden tables. You need to hire some accountants to prepare your monthly financial statements. The preparation of your financial statements is referred to as a(n)
1. Audit.
2. Review.
3. Compilation.
4. Special report.

Distribution of a report is always restricted when
1. Negative assurance is given.
2. A review has been performed.
3. There is a positive expression of opinion.
4. Agreed-upon procedures have been performe

Which of the following methods is most commonly used to reduce information risk?
1. Allow all users to prepare the statements.
2. Allow users to verify information.
3. Have the financial statements audited.
4. Users share information risk with management.

The phrase in our opinion in the auditor’s report is intended to inform users that auditors
1. Guarantee fair presentation of the financial statements.
2. Act as insurers of the accuracy of the financial statements.
3. Certify the material presented in the statements by management.
4. Based their conclusions about the statements on professional judgment.

The need for assurance services arises because:
1. There is a potential bias in providing information.
2. Economic transactions are less complex than they were a decade ago.
3. There is a consonance of interests of the preparer and the user of the financial statements.
4. Most users today have access to the system that generates the financial statements they use.

This tax service includes the determination of the tax consequences of planned or potential transactions, followed by making suggestions on the most desirable course of action such as to legally minimize the tax liability while achieving the client’s objectives.
1. Tax shelter
2. Tax evasion
3. Tax planning
4. Tax compliance

Which of the following characteristics is not considered necessary in determining whether the criteria are suitable?
1. Reliability
2. Relevance
3. Neutrality
4. Sufficiency

In an assurance engagement, this refers to the information obtained by the practitioner in arriving at the conclusions on which the conclusion is based.
1. Criteria
2. Assertions
3. Evidence
4. Generally accepted auditing standards

Compilation is an example of which one of the following types of services?
1. Auditing
2. Review
3. Consulting
4. Accounting

The Framework of Philippine Standards on Auditing distinguishes audits from related services. Related services include all of the following, except
1. Reviews.
2. Compilations.
3. Agreed-upon procedures.
4. Management consulting.

Assurance services involve which of the following?
1. Relevance as well as reliability.
2. Nonfinancial information as well as traditional financial statements.
3. Electronic databases as well as printed reports.
4. All of the above.

Which of the following is not one of the penalties that can be imposed by the BOA?
1. Reprimand
2. Fine or imprisonment
3. Revocation of CPA certificate
4. Suspension of CPA certificate

Which of the following is an incorrect statement relating to the theoretical framework of auditing?
1. Effective internal control structure reduces the probability of fraud or irregularities in an organization.
2. Application of generally accepted accounting principles results in a fair presentation of financial statements.
3. When examining financial data for the purpose of expressing an independent

opinion thereon, the auditor acts exclusively in the capacity of an auditor.

1. In collecting evidence, auditors should maintain an attitude of trust about their clients' assertions.

The market for auditing services is driven by
1. Congress at the state level
2. A demand by external users of financial statements
3. The regulatory authority of the Securities and Exchange Commission
4. Pronouncements issued by the Auditing Standards and Practices Council

Which of the following statements reflects an auditor's responsibility for detecting fraud and error?
1. An auditor is responsible for detecting employee errors and simple fraud, but not for discovering fraud involving employee collusion or management override.
2. An auditor should design the audit to provide reasonable assurance of detecting errors and fraud that are material to the financial statements.
3. An auditor should plan the audit to detect errors and fraud that are caused by departures from the applicable FRF.
4. An auditor is not responsible for detecting errors and fraud unless the application of PSAs and PAPs would result in such detection.

The adequacy of disclosures in the financial statements and footnotes is the primary responsibility of the:
1. Client
2. Auditor in charge of field work
3. Partner assigned to engagement
4. Staff member who drafted the statements

Generally accepted auditing standards do not require auditors of financial statements to
1. Assess the risk of occurrence of errors and fraud
2. Design audits to provide reasonable assurance of detecting errors and frauds
3. Report all the findings of errors and fraud to police authorities

1. Understand the nature or errors and fraud

The risk that the auditor's own work will lead to the decision that material misstatements do not exist in the financial statements, when in fact such misstatements do exist, is
1. Control risk
2. Detection risk
3. Inherent risk
4. Audit risk

With respect to the concept of materiality, which one of the following statements is correct?
1. Materiality is a matter of professional judgment.
2. Materiality is determined by reference to AASC's guidelines.
3. Materiality depends on the nature of a transaction rather than the peso amount of the transaction.
4. Materiality depends only on the peso amount of an item relative to other items in the financial statements.

The following statements relate to the Board of Accountancy. Which statement is correct?
1. The Board consists of a Chairman and six members.
2. The chairman and members are appointed by the President of the Philippines upon recommendation of PICPA.
3. Majority of the board members shall as much as possible be in public practice.
4. The Professional Regulation Commission may remove from the Board any member whose certificate to practice has been removed or suspended.

The APO shall submit its nominations with complete documentation to the Commission not later than prior to the expiry of the term of an incumbent chairman or member.
1. 30 days
2. 60 days
3. 90 days
4. 120 days

1. A member of the BOA shall, at the time of his/her appointment, possess the following qualifications, except

1. 1. Must be a natural-born citizen and resident of the Philippines.
  2. Must not be a director or officer of the APO at the time of his/her appointment.
  3. Must be of good moral character and must not have been convicted of crimes involving moral turpitude.
  4. Must be a duly registered CPA with more than ten (10) years of work experience in any scope of practice of accountancy.

Which statement is incorrect regarding the term of office of the chairman and the members of the Board of Accountancy (BOA)?
1. The Chairman and members of the Board shall hold office for a term of three years.
2. A person may serve the BOA for not more than twelve years.
3. A member of the BOA may continuously serve office for more than nine years.
4. No person who has served two (2) successive complete terms shall be eligible for reappointment until the lapse of one (1) year.

The BOA shall submit to the PRC the ratings obtained by each candidate within how many calendar days after the examination?
1. 5 days
2. 10 days
3. 15 days
4. 30 days

Which of the following is not one of the grounds for proceedings against a CPA?
1. Insanity.
2. Immoral or dishonorable conduct.
3. Gross negligence or incompetence in the practice of his profession.
4. Engaging in public practice while being employed in a private enterprise.

The primary duty to enforce the provisions of RA 9298 and its IRR rests with
1. The PRC
2. The BOA
3. The AASC
4. The PRC and BOA

The PICPA shall renew its Certificate of Accreditation once every how many years after the date of the Resolution granting the petition for re-accreditation and the issuance of the said certificate upon submission of the requirements?
1. 2 years
2. 3 years
3. 4 years
4. 6 years

The practice of accountancy includes the following except:
1. Serving as audit examiner for the Commission on Audit.
2. Working as a Dean of a College that grants a degree of BS Accountancy.
3. Being appointed as the marketing manager of a business enterprise.
4. Provision of assurance services to more than one client and on a fee basis.

Which of the following is one of the functions of Quality Review Committee:
1. To promulgate accounting and auditing standards that will be generally accepted in the Philippines.
2. To conduct a review on applicants for registration to practice public accountancy and render a report which shall be attached to the application for registration.
3. To adopt a Code of Ethics for the practice of accountancy.
4. To evaluate periodically the performance of educational institutions offering accountancy education.

No matter competent a CPA may be, his opinion on financial statements will be of little value to those who rely upon him unless he:
1. Maintains his independence.
2. Maintains professional competence.
3. Maintains a program of continuing education.
4. Serves his clients with professional concern.

Which of the following statements about independent financial statement audit is incorrect?
1. The term "scope of the audit" refers to audit procedures deemed necessary in

the circumstances to achieve the objective of the audit.

1. The auditor's opinion enhances the credibility of the financial statements.
2. The phrase used to express the auditor's opinion is "present fairly, in all material respects".
3. The risk that the auditor will fail to uncover material misstatement is eliminated when the auditor conducts the audit in accordance with PSAs.

For what reason does an independent auditor gather evidence?
1. To assess management performance
2. To detect fraud
3. To detect misstatements
4. To form an opinion on the financial statements

In conducting an appraisal of the economy and efficiency with which company resources are used, an internal auditor's responsibility is to:
1. Verify the accuracy of asset valuation.
2. Verify the existence of assets.
3. Determine whether operating standards have been established.
4. Review the reliability of operating information.

Because an external auditor is paid a fee by a client company, he
1. Is absolutely independent and may conduct an audit.
2. May be sufficiently independent to conduct an audit.
3. Is never considered to be independent.
4. Must receive approval of the Securities and Exchange Commission before conducting an audit.

Which of the following is a conceptual difference between the attestation standards and generally accepted auditing standards?
1. The attestation standards do not permit an attest engagement to be part of a business acquisition study or a feasibility study.
2. The attestation standards provide a framework for the attest function beyond historical financial

statements.

1. The requirement that the practitioner be independent in mental attitude is omitted from the attestation standard.
2. None of the standards of fieldwork in generally accepted auditing standards are included in the attestation standards.

The exercise of due professional care requires that an auditor
1. Uses error-free judgment.
2. Considers internal control, including tests of controls.
3. Be responsible for fulfilling his or her duties diligently and carefully.
4. Examines all corroborating evidence available.

The objectives of the Philippine accountancy Act of 2004 are the following except:
1. The standardization and regulation of accounting education.
2. The examination for registration of certified public accountants.
3. The integration of the accounting profession.
4. The supervision, control, and regulation of the practice of accountancy in the Philippines.

1. A CPA is in public accounting practice when he/she
  1. Holds, or is appointed to, in an accounting professional group in government or in a government-owned and/or controlled corporation where decision making requires professional knowledge in the science of accounting.
  2. Represents his/her employer before government agencies on tax and other matters related to accounting.
  3. Represents his/her clients before government agencies on tax and other matters related to accounting.
  4. Teaches accounting, auditing, management advisory services, accounting aspect of finance, business law, taxation, and other technically related subjects.

The underlying reason for a code of professional conduct for any profession is
1. That it is required by Congress.

1. That it provides a safeguard to keep unscrupulous people out.
2. The need for public confidence in the quality of service of the profession.
3. That it allows Professional Regulation Commission to have a yardstick to measure deficient performance.

If a firm, or a network firm, has a direct financial interest in an audit client of the firm, the self-interest threat created would be so significant no safeguard could reduce the threat to an acceptable level. The action appropriate to permit the firm to perform the engagement would be to
1. Dispose of the financial interest.
2. Dispose of a sufficient amount of it so that the remaining interest is no longer material.
3. Either a or b
4. Neither a nor b

Which of the following statements is incorrect?
1. CPAs lose their independence if they acquire any direct financial interest in a client.
2. CPAs lose their independence if they acquire any indirect financial interest in a client.
3. CPAs lose their independence if they acquire a material indirect financial interest in a client.
4. CPAs lose their independence if they have a material direct financial interest in a client.

1. A violation of the ethical standards would most likely have occurred when a CPA
  1. Made arrangement with a bank to collect notes issued by a client in payment of fees due.
  2. Joined an accounting firm made up of three non-CPA practitioners.
  3. Issued an unqualified opinion on the 2010 financial statements when fees for the 2009 audit were unpaid.
  4. Purchased a bookkeeping firm's practice of monthly write-ups for a percentage of fees received over a three-year period.

The confidential relationship applies to
1. All services provided by CPAs.

1. Only audit and attestation services.
2. Audit and tax services, but no MAS services.
3. Audit and MAS services, but not tax services.

1. CPA’s retention of records as a means of enforcing payment of an overdue audit fee is an act that is:
  1. A violation of generally accepted auditing standards.
  2. Considered acceptable by the Code of Ethics.
  3. Ill advised since it would impair the CPA’s independence with respect to the client.
  4. Considered discreditable to the profession.

Which of the following acts of the CPA would be most likely a violation of the Code of Ethics?
1. Assisting a client in preparing a financial forecast.
2. Acting as auditor of a non-charitable organization with audit client serving as president.
3. Accepting a fee in a tax matter that is contingent upon the result of an administrative proceeding.
4. Having an immaterial loan to the president of an audit.

CPAs should not be liable to any party if they perform their services with:
1. Ordinary negligence.
2. Regulatory providence.
3. Due professional care.
4. Good faith.

Under the Code of Ethics, a CPA may not:
1. Perform bookkeeping services for an audit client.
2. Perform advisory services for an audit client.
3. Have any direct financial interest in a client during the period covered by the financial statements.
4. Having any joint, closely held investments with a principal stockholder of an audit client during the period of audit engagement which is not material in relation to his net

worth.

The Code of Ethics would be violated if a CPA accepted a fee for services and the fee was:
1. Fixed by a public authority.
2. Based on a price quotation submitted in competitive bidding.
3. Based on the results of judicial proceedings in a tax matter.
4. Payable after a specified finding was attained in a review of financial statements.

The CPA shall not concurrently engage in any business or occupation which impairs his objectivity in rendering professional services or which is inconsistent with his practice or employment. This provision of the code of ethics is applicable to:
1. Only to CPAs engaged in public accountancy.
2. CPAs engaged in public accountancy or employed in a private enterprise.
3. CPAs engaged in public accountancy or employed in a private enterprise or government agency.
4. All CPAs engaged in public accountancy, or employed in a private enterprise, a government agency or an educational institution.

Ultimately, the decision as to whether the CPA is independent or not, will be made by the:
1. Audit Committee
2. Client
3. Public
4. Auditor

In which of the following instances would the independence of the CPA not be considered to be impaired? The CPA has been retained as the auditor of a brokerage firm
1. Which owes the CPA audit fees for more than one year.
2. In which the CPA has a large active margin account.
3. In which the CPA’s brother is the controller.
4. Which owes the CPA audit fees for the current year services and just

filed a petition for bankruptcy.

1. CPA, while performing an audit, strives to achieve independence in appearance in order to:
  1. Reduce risk and liability.
  2. Become independent in fact.
  3. Comply with GAAS.
  4. Maintain public confidence in the profession.

Contingent fees charged by CPAs engaged in tax practice are permitted under the rules of professional conduct because:
1. This practice establishes fees which are commensurate with the value of the services.
2. Attorneys in tax practice customarily set contingent fees.
3. Determination by taxing authorities are a matter of judicial proceedings which do not involve third parties.
4. The consequences are based upon findings of judicial proceedings or the findings of tax authorities.

Ethically, the auditor could:
1. Advertise only as to his expertise in preparing income tax returns.
2. Base his audit fee on a percentage of the proceeds of his client’s stock issue.
3. Perform an examination for a financially distressed client at less than his customary fees.
4. Own preferred stock in a corporation which is an audit client.

The Code of Ethics contains both general ethical principles that are aspirational in character and also a:
1. List of violations that would cause the automatic suspension of the CPA’s license.
2. Description of the CPA’s procedures for responding to an inquiry from trial board.
3. Set of specific, mandatory rules describing levels of conduct the CPA must observe.
4. List of specific crimes that would be considered as acts discreditable to the profession.

According to the Code of Ethics, the

characteristics distinguishing the accountancy profession include the following except:

1. To meet public interest requirement.
2. Adherence by its members to a common code of values and conduct established by its administering body.
3. Acceptance of a duty to society as a whole.
4. Mastery of a particular intellectual skill, acquired by training and education.

1. practicing CPA is allowed by the CPA Code of Ethics to do the following except:
  1. Announce the change in office location in a newspaper.
  2. List his firm name in the building lobby directory in good taste and modest size.
  3. Include his tax account number and membership in PICPA on his stationary.
  4. List his office telephones in the PLDT directory to box or bold type.

Without the consent of the client, a CPA should not disclose confidential information contained in working papers to a:
1. Voluntary quality control review board.
2. CPA firm that has purchased the CPA’s accounting practice.
3. National court that has issued a valid subpoena.
4. Disciplinary body created under statute.

1. CPA who is engaged to prepare an income tax return has a duty to prepare it in such a manner that the tax is:
  1. The legal minimum.
  2. Computed in conformity with generally accepted accounting principles.
  3. Supported by the client’s audited financial statements.
  4. Not subject to change upon audit.

The principle of Professional behavior requires a CPA to:
1. Perform professional services with due care, competence and diligence.
2. Be straightforward and honest in performing professional services.

1. Act in a manner consistent with the good reputation of the profession and refrain from any conduct which might bring discredit to the profession.
2. Be fair and should not allow prejudice or bias, conflict of interest or influence of others to override objectivity or affect his professional or business judgments.

The communication to the public of facts about a CPA which are not designed for the deliberate promotion of that CPA.
1. Advertising
2. Solicitation
3. Indirect promotion
4. Publicity

Which of the following does not belong to the group:
1. Independence of mind
2. Independence of fact
3. Independence in mental attitude
4. Independence in appearance

Safeguards that may eliminate or reduce threats to independence to an acceptable level fall in the following categories except:
1. Safeguards created by the profession, legislation or regulation
2. Firm-wide safeguards
3. Engagement specific safeguards
4. Safeguards created by the client.

1. A CPA firm would be reasonable assured of meeting its responsibility to provide professional services that conform with professional standards by:
  1. Adherence to GAAS
  2. Maintaining an attitude of independence in its engagements.
  3. Having an appropriate a system of quality control.
  4. Joining professional societies that enforce ethical standards.

The Philippine Code of Ethics requires that lead engagement partners of listed entities be rotated at least once every:
1. 2 years
2. 3 years
3. 5 years
4. 7 years

The following are represented both to the Financial Reporting Standards Council (FRSC) and Auditing and Assurance Standards Council (AASC), except:
1. Bangko Sentral ng Pilipinas
2. Securities and Exchange Commission
3. Bureau of Internal Revenue
4. Board of Accountancy

Which of the following auditor concerns most likely could be so serious that the auditor concludes that a financial statement audit cannot be conducted?
1. The entity has no formal written code of conduct
2. The integrity of the entity’s management is suspect
3. Procedures requiring segregation of duties are subject to management override
4. Management fails to modify prescribed controls for changes in conditions

Which of the following is a violation of the code of professional ethics for certified public accountants?
1. A CPA permits his/her name to be used in a client's advertising as having verified financial data and/or statistical facts with respect to the client's products.
2. Based on information obtained in an audit, a CPA reports an illegal act of his client to government authorities.
3. Three years after a partner has retired, the remaining partners continue to practice under a firm name that includes the name of the retired partner. The retired partner has severed all connections with the CPA firm.
4. A CPA running for public office uses the professional designation "CPA" after his name on posters employed in connection with his election campaign.

1. A CPA in public accounting is prohibited from performing which of the following actions?
  1. Permit the publication of his being the author of a book.
  2. Be a party to a stratagem which permits a non-CPA to practice accountancy.
  3. Allow his wife to acquire shares in a corporation's capital stock.

1. 1. Act as a stock and transfer agent.

1. A CPA who has been retained by a client that operates in an industry totally new to him
  1. May not accept such an engagement.
  2. May accept the engagement only if the accounting firm specializes in the audit of commercial banks.
  3. May accept the engagement after attaining a suitable level of understanding of the transactions and accounting practices unique to commercial banking.
  4. May accept the engagement because training as a CPA transcends unique industry characteristics.

Which of the following is not an objective of requiring registration of individual CPAs and Firms of partnership of CPAs engaged in public accounting practice?
1. The required registration will give equal opportunities to CPAs in the practice of their profession.
2. It will enable the Board of Accountancy to formulate and implement rules and regulations more effectively for the enhancement and maintenance of high professional, ethical, and technical standards of the accounting profession.
3. To protect the public against fraud, deception, unethical practices and from the consequences of ignorance, incompetence and incapacity in the practice of public accounting.
4. It will help PRC and BOA to identify and impose corresponding sanctions and penalties on individual CPAs.

As used in Republic Act No. 9298, this term refers to the area of practice of accountancy
1. Section
2. Sector
3. Segment
4. Line

Which of the following does not constitute a practice of accountancy?
1. A person holding out himself as one skilled in the knowledge, science and practice of accounting and as a qualified person to render professional services as a CPA to more than one client.

1. A person representing his/her employer before government agencies on tax arid other accounting related matters.
2. A person in educational institution teaching accounting, auditing, business law, taxation or other technically related subjects.
3. A person is appointed as a marketing director of a government owned and controlled corporation.

The criteria for evaluating quantitative information vary. For example, in the audit of historical financial statements by CPA firms, the criteria are usually:
1. Generally accepted auditing standards.
2. Acceptable financial reporting framework
3. Regulations of the Securities and Exchange Commission
4. Regulations of the Bureau of Internal Revenue

The firm is to be staffed by personnel who have attained and maintained the technical standards and professional competence required to enable them to fulfill their responsibilities with due care is the objective of what quality control policy?
1. Ethical requirements
2. Leadership responsibilities
3. Assignment
4. Monitoring

In pursuing a CPA firm's quality control objectives, a CPA firm may maintain records indicating which partners or employees of the CPA firm were previously employed by the CPA firm's clients. Which quality control element would this be most likely to satisfy?
1. Monitoring.
2. Human resources.
3. Ethical requirements.
4. Engagement performance.

An engagement quality control review is required to be performed:
1. Immediately after the re-assessment of control risk.
2. At engagement completion after the report is issued.
3. For all audits of financial statements of listed entities.