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    Multiple Choice Questions

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    촏교새벼
    The document contains 20 multiple choice questions about assurance services. The questions cover topics such as the categories of practitioner's services, examples of assurance engagements, the elements of assurance engagements, the role of an auditor, statements about assurance services, the subject matter of assurance engagements, the responsibilities of the responsible party, criteria for assessing suitable criteria, the level of assurance in limited assurance engagements, the use of professional judgement, the Philippine Framework for Assurance Engagements, audit documentation standards, factors limiting absolute assurance, and the purpose of an assurance report.

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    Multiple Choice Questions

    Uploaded by

    촏교새벼
    154 views5 pages
    The document contains 20 multiple choice questions about assurance services. The questions cover topics such as the categories of practitioner's services, examples of assurance engagements, the elements of assurance engagements, the role of an auditor, statements about assurance services, the subject matter of assurance engagements, the responsibilities of the responsible party, criteria for assessing suitable criteria, the level of assurance in limited assurance engagements, the use of professional judgement, the Philippine Framework for Assurance Engagements, audit documentation standards, factors limiting absolute assurance, and the purpose of an assurance report.

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    ACP_314_LETS_ANALYZE[1]-converted.docx

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    The document contains 20 multiple choice questions about assurance services. The questions cover topics such as the categories of practitioner's services, examples of assurance engagements, the elements of assurance engagements, the role of an auditor, statements about assurance services, the subject matter of assurance engagements, the responsibilities of the responsible party, criteria for assessing suitable criteria, the level of assurance in limited assurance engagements, the use of professional judgement, the Philippine Framework for Assurance Engagements, audit documentation standards, factors limiting absolute assurance, and the purpose of an assurance report.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    154 views5 pages

    Multiple Choice Questions

    Uploaded by

    촏교새벼
    The document contains 20 multiple choice questions about assurance services. The questions cover topics such as the categories of practitioner's services, examples of assurance engagements, the elements of assurance engagements, the role of an auditor, statements about assurance services, the subject matter of assurance engagements, the responsibilities of the responsible party, criteria for assessing suitable criteria, the level of assurance in limited assurance engagements, the use of professional judgement, the Philippine Framework for Assurance Engagements, audit documentation standards, factors limiting absolute assurance, and the purpose of an assurance report.

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    Let’s Analyze

    Multiple Choice Questions:


    1. Which of the following is not one of the major categories of practitioner’s services?
    a. Compilation engagement.
    b. Assurance engagements on subject matters other than historical
    financial information.
    c. Related service framework.

    d. Compilation engagement.

    2. An example of an assurance engagement is


    a. Labor data for union contact negotiation.
    b. Audit of financial statements of a medium size company.

    c. Regulator’s questionnaire on business ethics and conduct.


    d. Insurance claims data.
    3. Which of the following is not one of the five elements exhibited by
    assurance engagements?
    a. The subject matter.
    b. Suitable criteria.
    c. Sufficient appropriate evidence
    d. A multi-party relationships.
    4. What does an auditor do?
    a. Provide a guarantee on the ongoing viability of a company.
    b. Provide an independent opinion on the financial report.

    c. Help management to produce the financial report.


    d. Ensure that the financial report contains no fraud or error.

    5. Which of the following is an accurate statement regarding assurance services?


    a. Assurance services improve the quality of information for decision makers.

    b. Assurance services must be performed by a CPA.


    c. An attestation service is not a type of assurance service.
    d. Assurance services can only be performed on financial data.
    6. Subject matter and subject matter information of an assurance engagement
    can take all of the following, except:

    a. Physical characteristics.
    b. Non-financing performance or conditions.
    c. Litigation planning.

    d. Financial performance or conditions.


    7. Assurance services differ from consulting services in that they
    Involved Monitoring of

    Focus on Outcomes One Party by Another


    a. Yes Yes

    b. Yes No
    c. No Yes
    d. No No
    8. What is the type of assurance engagement that has as its subject matter a
    non- historical financial information?
    a. Special purpose engagement.

    b. Agreed-upon procedures.
    c. Review of financial statements.

    d. Prospective financial information.


    9. The following statements relate to assurance engagements. Choose the
    incorrect statements.
    1. The objective of an assurance engagement is for a professional
    accountant to evaluate or measure a subject matter that is the responsibility or
    another party against identified suitable criteria, and to express a conclusion that
    provides the intended user with a level of assurance about the subject matter.

    2. Assurance engagements performed by professional accountants


    are intended to enhance the credibility of information about a subject matter.
    3. Assurance engagements involve two parties: a professional accountant
    and an intended user.
    4. The subject matter of an assurance engagement is limited to historical
    or prospective financial information.
    5. The intended user in an assurance engagement is the person or class of
    persons for whom the professional accountant prepares the report for a specific use
    or purpose.
    a. 2, 3, 4 and 5
    b. 2, 4 and 5
    c. 3 and 4

    d. 1, 2, 3, and 4

    10. How does the related services framework differ from the assurance framework?
    a. Related services claim compliance with PSAs.

    b. Related services engagements do not result in an opinion.


    c. Related services enhance the degree of confidence intended users can have.
    d. Related services claim compliance with PSAEs.
    11. Which of the following is not true about the subject matter of an
    assurance engagement?
    a. It is the topic about which the assurance is conducted.
    b. It could be information such as financial statements, statistical information
    and non-financial performance indicators.
    c. It could be the Philippine Financial Reporting Standards.

    d. It could be systems and processes or behavior.


    12. A responsible party does each of the following,
    except: a. Selects the audit procedures.

    b. Determines the subject matter.


    c. Selects criteria.
    d. Engages the practitioner.
    13. The characteristics for assessing whether criteria are suitable are all
    the following, except
    a. Reliability.
    b. International acceptance.

    c. Understandability
    d. Neutrality
    14. Sufficiency of evidence is

    a. Evidence which is adequate.


    b. The measure of the quality of evidence.
    c. The measure of the quantity of evidence.
    d. Evidence which is material.
    15. In a limited assurance engagement, the practitioner
    a. Has obtained sufficient appropriate evidence to reduce
    assurance engagement risk to an acceptably low level.
    b. Expresses the conclusion in a positive form.
    c. Expresses the conclusion in the negative form.
    d. Conveys reasonable assurance.
    16. Professional judgment is the application of relevant training, knowledge and
    experience, within the context provided by , in making informed
    decisions about the courses of action that are appropriate in the circumstances
    of the audit engagement.
    a. Philippine Financial Reporting Standards.
    b. Philippine Standards on Auditing.

    c. The Code of Professional Ethics of an Accountants.

    d. Auditing, accounting and ethical standards.


    17. The Philippine Framework for Assurance Engagements
    a. Establishes standards and provides procedural requirements for the
    performance of assurance engagements.
    b. Contains basic principles, essential procedures, and related guidance for
    the performance of assurance engagements.
    c. Provides a frame of reference for CPAs in public practice when performing audits,
    reviews, and compilations of historical financial information.
    d. Defines and describes the elements and objectives of an assurance
    engagement, and identifies engagements to which PSAs, PSREs, and
    PSAEs apply.

    18. The auditor is required to prepare audit documentation sufficient to enable an


    experienced auditor, having no previous connection with the audit, to understand
    the
    in reaching conclusions on significant matters arising during the audit.

    a. Confirmation letters.
    b. Significant professional judgments made.
    c. The total evidence gathered.

    d. The interviews conducted with employees and management.


    19. Absolute assurance is generally not attainable as a result of various factors,
    such as
    a. The use of sampling in performing tests of controls and substantive tests.
    b. Internal control systems are subject to the risk of collusion and
    management override. No system is fool-proof.
    c. There are some assertions for which the only evidence comes from
    management representations, such as the completeness of minutes of meetings of
    the board of directors.
    d. All of these.

    20. An assurance report


    a. Provides reasonable assurance to the responsible party.
    b. Has a format that is uniquely different from PSA audit opinions.

    c. Is prepared by the responsible party.


    d. Provides a written report containing a conclusion that conveys
    the assurance obtained about the subject matter information.

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