Multiple Choice Questions: Accountancy Practice, Auditing

School: Gordon College, Olongapo City - Course: BSA 102 - Subject: Accounting

MULTIPLE CHOICE QUESTIONS 1.The practice of Accountancy includes I.Practice of Public Accountancy II.Practice in Commerce and IndustryIII. Practice in Education/Academe A.I and II only B.II and III only C.I and III only D.I, II, and III 2.Which of the following was created by the Professional Regulation Commission (PRC) upon the recommendation of the Board of Accountancy (BOA) to assist the BOA in the establishment and promulgation of auditing standards in the Philippines? A.IFAC B.AASC C.FRSC D.IAASB 3.The Philippine Framework for Assurance Engagements A.Contains basic principles, essential procedures, and related guidance for the performance of assurance engagements. B.Defines and describes the elements and objectives of an assurance engagement, and identifies engagements to which PSAs, PSREs, and PSAEs apply. C.Provides a frame of reference for CPAs in public practice when performing audits, reviews, and compilations of historical financial information. D.Establishes standards and provides procedural requirements for the performance of assurance engagements. 4.Which of the following engagements is covered by the Framework for Assurance Engagements? A.Compliance audits. B.Consulting engagements. C.Agreed-upon procedures engagement. D.Preparation of tax returns. 5.The Philippine Standards on Assurance Engagements (PSAEs) are to be applied in A.Compilation engagements and agreements to apply agreed-upon procedures to information. B.The audit or review of historical financial information. C.Assurance engagements dealing with subject matters other than historical financial information. D.Assurance engagements dealing with historical financial information. 6.The Philippine Standards on Quality Control (PSQCs) are to be applied to A. Assurance engagements only. B.Review engagements only. C.Compilation and review engagements only. D.All services that fall under the AASC's engagement standards. 7.CPAs in public practice who perform assurance engagements are governed by the following,except A.Philippine Standards on Related Services B.Philippine Framework for Assurance Engagements

CPAR - MANILAAT-9001 C.Code of Ethics for Professional Accountants in the Philippines D.Philippine Standards on Quality Control 8.These statements are issued by the AASC to provide interpretive guidance and practical assistance to auditors in the implementation of PSAs and to promote good practice. A.PAPNs B.PAEPs C.PAPSs D.PREPs 9.Practitioners who perform assurance engagements are governed by the following, except A.Code of ethics for Professional Accountants in the Philippines B.Philippine Financial Reporting Standards C.The Framework to Assurance Engagements D.Philippine Standards on Quality Control