exam3

1. The Philip Philippine pine Stand Standards ards on Auditin Auditing g issued issued by AASC AASC a. Are applicable applicable only when when an independent independent audit audit involving involving an an expression expression of of an opinion on financial statements is carried out. b. Are the only authorita authoritative tive source source of standards for members members of the accountan accountancy cy profession in the Philippines. c. Are gene general ral gui guideli delines nes to help help audi auditors tors.. d. Reuire that in no circumstance circumstancess would an auditor auditor may may !udge it necessary necessary to depart from a PSA" even though such a departure may result to more effective achievement of the ob!ective of an audit. #. The exposure exposure period period allowed allowed for each each exposure exposure draft draft of PSA to be considered considered by the organi$ations and persons to whom it is sent for comment is generally a. %our mo months b. Two months c. Th Thrree month thss d. Six months &. 'hich of of the following is not true of of Philippine Philippine Auditing Auditing Practice Statements Statements (PAPSs)* a. These These stateme statements nts are are not not intende intended d to repla replace ce PSAs PSAs b. Thes Thesee statemen statements ts are intende intended d to have the the authorit authority y of the PSAs c. These statements statements are issued to provide provide practical practical assistance assistance to auditors auditors in implementing the PSAs d. These These are not not form of inter interpret pretatio ations ns issued issued by the the AASC +. 'hich 'hich of the follo following wing statemen statements ts is false* false* a. ,n exceptional exceptional circumstances" circumstances" an auditor may !udge !udge it necessary necessary to depart depart from a PSA in order to more effectively achieve the ob!ective of an audit. 'hen such situation arises" the auditor is reuired to !ustify the departure. b. PSAs need only only be appli applied ed to mater material ial matte matters. rs. c. ,ssuance of final final auditing auditing standards standards"" interpretatio interpretations ns and statemen statements ts reuires reuires approval of the ma!ority of the AASC members. d. ,ssuance of exposure exposure draft draft reuires reuires the the approval approval of the ma!ority ma!ority of of the AASC members. -. ased on the the structure structure of AASC pronouncements" pronouncements" related service include* include* Assurance Review A greed upon procedures Compilation a. /es /es 0o 0o b. 0o 0o /es /es c. /es /es /es 0o d. 0o /es /es /es . 'hich of of the following pronouncements pronouncements issued issued by by AASC is designed designed to resolve issues relating to PSAs* a. Philippi Philippine ne Audit Auditing ing Practic Practices es State Statement mentss b. ,n ,nte terp rpre reta tati tion onss c. Stateme Statements nts of Audit Auditing ing Standa Standards rds in the the Philip Philippine piness d. 2enerall 2enerally y Accep Accepted ted Auditing Auditing Standar Standards ds 3. 'hich of of the following is correct correct about about Philippine Philippine Auditing Auditing Practices Practices Statements Statements (PAPS)*

a. These are issued to resolve issues relating to PSAs. b. These statements are intended to have the authority of PSAs. c. These statements are issued to provide practical assistance to auditors in implementing PSAs or to promote good practice. d. These statements are forms of interpretations issued by AASC. 4. Pronouncements issued by AASC may be in the form of Philippine Standards Philipine Philippine Philippine 5n Auditing Standards on Standards on Standards Assurance Review Related 6ngagements 6ngagements Services a. /es /es /es /es b. /es 0o /es c. 0o /es /es d. 0o /es 0o

on

0o 0o /es

7. 'hich of the following best describes the function of Auditing and Assurance Standards Council (AASC)* a. To establish and promulgate generally accepted accounting principles in the Philippines. b. To investigate violations of Accountancy Act. c. To promulgate auditing standards" practices and procedures that shall be generally accepted by the accounting profession in the Philippines. d. To determine the minimum reuirements for admission in the accounting profession. 18. The Philippine Standards on Auditing (PSA) can be described as a. Providing very specific guidance about the specific activities an auditor must perform on each engagement. b. Similar to Philippine %inancial Reporting Standards (P%RS). c. 9efining the minimum standards of performance for an auditor. d. Providing assurance that an auditor will not issue the wrong :ind of opinion. 11. A uality control policy that reuires personnel in the form to adhere to independence" integrity" ob!ectivity" confidentiality and professional behavior" relates to a. 6thical Reuirements b. Assignment c. ;uman resources d. Consultation 1#. 'hich of the following uality control ob!ectives would be least important to the auditor* a. 6ngagement performance b. ;uman resources

c. 9etermination of audit fee d. ,ndependence 1&. 'hich of the following is one of the elements of a CPA firm