Auditing Theory Test bank.docx

AuditinggTheorygTestgBank


Accountancyg(UniversitygofgthegImmaculategConception)




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, TESTgBANKgA
UDITINGgTHEORY
Overview

1. Providinggquantitativeginformationgthatgmanagementgandgothersgcangusegtogmakegdecisionsgisgthegfunctiongof
A. Accounting
B. Auditing
C. Finance
D. Managementgofginformationgsystems

2. Thegseriesgofgtasksgandgrecordsgofgangentitygbygwhichgtransactionsgaregprocessedgasgagmeansgofgmaintainin
ggfinancialgrecords
A. Accountinggsystem
B. Computerginformationgsystem
C. Controlgenvironment
D. Internalgcontrolgsystem

3. Thegexpertisegthatgdistinguishesgauditorsgfromgaccountantsgisgingthe
A. Abilitygtoginterpretgaccountinggstandards
B. Accumulationgandginterpretationgofgevidence
C. Abilitygtoginterpretggenerallygacceptedgaccountinggprinciples
D. Requirementgtogpossessgeducationgbeyondgthegbachelor’sgdegree

4. Comprisesgofficersgandgothersgwhogalsogperformgseniorgmanagerialgfunctions
A. Auditgcommittee C.gGovernance
B. Boardgofgdirectors D.gManagement

5. Angauditgconductedgtogdeterminegwhethergangentitygisgfollowinggspecificgproceduresgorgrulesgsetgdowngbygso
meghighergauthority
A. Compliancegaudit C.gFinancialgaudit
B. Detailedgaudit D.gOperationalgaudit

6. Agreviewgofganygpartgofgangorganization’sgandgmethodsgforgthegpurposegofgevaluatinggefficiencygandgeffectivene
ssgis
classifiedgasga(n)
A. Auditgofgfinancialgstatements
B. Compliancegaudit
C. Operationalgaudit
D. Productiongaudit

7. Operationalgauditinggisgprimarilygorientedgtoward
A. Pastgprotectiongprovidedgbygexistingginternalgcontrol
B. Futuregimprovementsgtogaccomplishgtheggoalsgofgmanagement
C. Thegaccuracygofgdatagreflectedgingmanagement’sgfinancialgrecords
D. Thegverificationgthatgagcompany’sgfinancialgstatementsgaregfairlygpresented

8. Agtypicalgobjectivegofgangoperationalgauditgis
A. Makegrecommendationsgforgimprovinggperformance
B. Evaluategthegfeasibilitygofgattaininggthegentity’sgoperationalgobjectives
C. Reportgongthegentity’sgrelativegsuccessgingattaininggprofitgmaximization
D. Determinegwhethergthegfinancialgstatementsgfairlygpresentgthegentity’sgoperations

9. Undergtheglaw,gthegchiefgexecutivegofficergofgthegCommissiongongAuditgisgthe
A. Chairman C.gCommissioner
B. CommissiongSecretary D.gExecutivegDirector

10. OnegofgtheggovernmentgauditinggstandardsgwhichgisgnotgobservedgbygindependentgCPAsgingthegprivategsectorgis:
A. Angevaluationgshallgbegmadegofgthegsystemgofginternalgcontrol
B. Agreviewgshallgbegmadegofgcompliancegwithglegalgandgstatutorygrequirements
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, C. Thegauditgisgtogbegadequatelygplannedgandgassistantsgaregtogbegproperlygsupervised
D. Sufficientg competentg evidentialg matterg shallg beg obtainedg throughg inspection,g observation,g inquiries,
g andgconfirmations

11. Whichgofgthegfollowinggisgmoregdifficultgtogevaluategobjectively?
A. Compliancegwithggovernmentgregulations
B. Efficiencygandgeffectivenessgofgoperations
C. Presentationgofgfinancialgstatementsgingaccordancegwithggenerallygacceptedgaccountinggprinciples
D. Allgthreegofgthegabovegaregequallygdifficult

ProfessionalgPracticegofgAccounting

12. ThegCoregCompetenciesgofgCPAsginclude:
A. Assurancegandginformationgintegrity
B. Objectivity
C. Pursuitgofglife-longglearninggandgexcellence
D. Strategicgandgcriticalgthinkinggskills

13.
grefersgtogthegapplicationgofgrelevant,gtraining,gknowledgegandgexperience,gwithingthegcontextgprovi
dedgbygauditing,gaccountinggandgethicalgstandardsgingmakingginformedgdecisionsgaboutgthegcoursegofgactiongtha
tgaregappropriategingthegcircumstancesgofgthegauditgengagement.
A. Compliance C.gProfessionalgjudgment
B. Professionalgcompetence D.gReasonablegassurance

14. Whilegperforminggservicesgforgtheirgclients,gprofessionalsghavegagdutygtogprovidegaglevelgofgcaregwhichgis
A. Freegfromgjudgmentgerrors C.gReasonable
B. Greatergthangaverage D.gSuperior

15. “Absencegofgreasonablegcaregthatgcangbegexpectedgofgagpersongingagsetgofgcircumstances”gisgthegdefinitiongof
A. Constructivegfraud C.gGrossgnegligence
B. Fraud D.gOrdinarygnegligence

QualitygControlgStandards

16. Thegpoliciesgandgproceduresgadoptedgbygagfirmgtogprovidegreasonablegassurancegthatgallgauditsgdonegbygthe
gfirmgaregbeinggcarriedgoutgingaccordancegwithgthegObjectivegandgGeneralgPrinciplesgGoverninggangAuditgofgFi
nancialgStatements.
A. Generalgcontrols C.gPeergreview
B. Internalgcontrols D.gQualitygcontrols

17. Thegmaingpurposegofgimplementinggqualitygcontrolgpoliciesgandgproceduresgis:
A. Toghavegagfavorablegpeergreview
B. Togcomplygwithgregulatorygagency
C. Togstandardizegthegpoliciesgandgproceduresgofgthegauditgfirms
D. TogprovidegreasonablegassurancegthatgauditgwillgbegconductedgingaccordancegwithgPSA

18. Agfirmgshouldgestablishgandgmaintaingagsystemgofgqualitygcontrolgtogprovidegitgwithgreasonablegassurancegthat:
I. Thegfirmgandgitsgpersonnelgcomplygwithgprofessionalgstandardsgandgapplicableglegalgandgregulatorygrequirement
s
II. Reportsgissuedgbygthegfirmgorgengagementgpartnersgaregappropriategingthegcircumstances
A. Igonly C.gBothgIgandgII
B. IIgonly D.gNeithergIgnorgII

19. Thegfirmgshallgestablishgpoliciesgandgproceduresgdesignedgtogprovidegitgwithgreasonablegassurancegthatgengage
mentsgaregperformedgingaccordancegwithgprofessionalgstandardsgandgregulatorygandglegalgrequirements,gandg
thatgthegfirmgorgthegengagementgpartnergissuegreportgthatgaregappropriategingthegcircumstance.gSuchgpolicies
gandgproceduresgshallginclude:
A. Reviewgresponsibilities
B. Supervisiongresponsibilities
C. Mattersgrelevantgtogpromotinggconsistencygingthegqualitygofgengagementgperformance
D. Allgofgthegchoices
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