University of Mindanao - Main Campus (Matina, Davao City)

ACC 1234

1)The firm is to be staffed by personnel who have attained and maintained the technical standards and professional competence required to enable them to fulfil their responsibilities with due care is the objective of what quality control policy?

1. 1. Professional requirements
   2. Skills and Competence
   3. Assignment
   4. Delegation

2. The following statements related to Philippine Standards on Auditing. Choose the statement that best describes the meaning of PSAs.

1. 1. PSAs are procedures to be used to gather evidence to support management assertions
   2. PSAs are measures of the quality of the professional accountants performance
   3. PSAs are acts to be performed by the professional accountant
   4. PSAs always apply whenever a CPA performs an engagement

3. The need for assurance services arises for all of the following reasons except

1. 1. Remoteness between a user and the organization
   2. Complexity of the processing systems
   3. Closeness between a user and the organization
   4. Potential bias in providing information

4. This is an independent appraisal activity established within an entity as a service to the entity

1. 1. Government auditing
   2. Compliance audit function
   3. Independent auditing
   4. Internal audit function

5. This is published to promote discussion or debate on auditing, assurance and related services d quality control issues affecting the accounting profession, present findings, or describe matters of interest relating to auditing, assurance, related services and quality control issues affecting the accounting profession

1. 1. Exposure drafts
   2. Discussion papers
   3. Practices statements
   4. Technical papers

6. What is the type of assurance engagement that has as its subject matter a non- historical financial information?

1. 1. Review of financial statements
   2. Prospective financial information
   3. Agreed-upon procedures
   4. Special purpose engagement

7. When the professional accountant has obtained sufficient appropriate evidence to conclude that the subject matter conforms in all material respect with identified suitable criteria, he or she can provide what level of assurance?

1. 1. None
   2. Absolute
   3. Moderate
   4. High

8. Which of the following is an effective audit planning and control procedures that helps prevent misunderstandings and inefficient use of audit personnel?

1. 1. Arrange a preliminary conference with the client to discuss audit objectives, fees, timing, and other information.
   2. Make copies, for inclusion in the working papers, of those client supporting documents examined by the auditor
   3. Arrange to have the auditor prepare and post any necessary adjusting or reclassification entries prior to final closing