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1. The single feature that most clearly distinguishes auditing, attestation, and assurance is a. Type of service. b. Training required to perform the service. c. Scope of services. d. CPA’s approach to the service. ...

1. The single feature that most clearly distinguishes auditing, attestation, and assurance is a. Type of service. b. Training required to perform the service. c. Scope of services. d. CPA’s approach to the service. 2. The primary goal of the CPA in performing the attest function is to a. Detect fraud. b. Examine individual transactions so that the auditor may certify as to their validity. c. Determine whether the client's assertions are fairly stated. d. Assure the consistent application of correct accounting procedures. 3. Philippine Standards on Auditing a. Relate to the filing requirements and enforcement activities of the SEC. b. Describe procedures to be applied in specific areas of audit activity to eliminate inconsistencies in audit practice. c. Are intended to limit the degree of auditor judgment needed to fulfill the attest function. d. Interpret standards that provide guidelines or measures of quality for an independent audit. 4. The Philippine Standards on Auditing issued by AASC a. Apply to independent examination of financial statements of any entity when such examination is conducted for the purpose of expressing an opinion. b. Must not apply to other related activities of auditors. c. Need to be applied on all audit related. d. Require that in no circumstances would an auditor may judge it necessary to depart from a PSA, even though such a departure may result to more effective achievement of the objective of an audit. 5. Which of the following best describes the objective of an assurance engagement? a. To improve the company’s outcomes b. To compare the company’s information and polices to those of other entities c. To enhance the credibility of information in order to improve the likelihood that the information will meet the needs of an intended user d. To provide consulting and advisory services. 6. Assurance services differ from consulting services in that they I. Focus on providing advice II. Involve monitoring of one party by another a. I only b. II only c. Both I and II d. Neither I nor II 7. As used in PSA, which of the following statements best describes "assertions"? a. Assertions are the representations of management as to the reliability of the information system. b. Assertions are the auditor's findings to be communicated in the audit report. c. Assertions are the representations of management as to the fairness of the financial statements. d. Assertions are found only in the footnotes to the financial statements. 8. Which of the following mostly describes the function of AASC? a. To monitor full compliance by auditors to PSAs. b. To assist the Board of Accountancy in conducting administrative proceedings on erring CPAs in audit practice. c. To promulgate auditing standards, practices and procedures that shall be generally accepted by the accounting profession in the Philippines. d. To undertake continuing research on both auditing and financial accounting in order to make them responsive to the needs of the public. 9. Which statement does not accurately describe an assurance engagement? a. The objective of an assurance engagement is for a professional accountant to evaluate or measure a subject matter that is the responsibility of another party against identified suitable criteria, and to express a conclusion that provides the intended user with a level of assurance about that subject matter b. Not all engagements performed by professional accountants are assurance engagements c. A particular engagement, to be an assurance engagement, it depends upon whether it exhibits all the following elements: a two-party relationship, a subject matter, suitable criteria, and a conclusion d. An engagement in form of agreed-upon procedures result in the expression of factual finding