30 Questions
How many members must the Board of Accountancy have in addition to a chairperson?
Six (6) members
What type of software restricts computer access to authorized workers?
Access control and security software
When is a larger sample size necessitated?
High level of detection risk
What type of software generates a flowchart of the logic of a program?
Flowcharting software
What type of organizations use their resources to achieve their objective or mission?
Not-for-profit organizations
What is the first step an auditor should take to acquire litigation information?
Reviewing existing documentation
Which of the following actions did Ms. Candy take after Boy shared personal feelings with her?
She informed the Dean about the situation.
What kind of tutoring services does Mr. Bing offer to Basic Accounting students?
Online tutoring during weekends and after school hours.
Which of the following statements best describes the actions of Ms. Candy and Mr. Bing?
Only Mr. Bing violated the Code.
What type of errors are caused by the improper classification of revenues or expenses?
Income statement errors.
Under which circumstances may a negative confirmation request be used?
All of the above.
What subject does Mr. Bing teach, and why does he feel that extra time out of school will benefit the students?
He teaches Basic Accounting, and extra time will help students with adjusting journal entries.
What is the engagement called when the subject matter information is provided to the intended user in the assurance report?
Direct reporting engagement
What is the purpose of the procedures employed in a compilation engagement?
Not to enable the accountant to express any form of assurance
What is the attitude of the Philippine Institute of CPAs towards the use of negative assurances in audit reports of historical financial statements?
A violation of the standards of reporting
Where is the negative assurance properly located in an unqualified report?
Nowhere in the report
What is the primary purpose of a limited control test?
To determine if there are any material misstatements
What is the goal when reading financial statements to determine if they are free from obvious material errors?
To determine if the financial statements are free from obvious material errors
What is the most suitable procedure to identify events after the date of the financial statements that require disclosure?
Inquire about and discuss potential litigation with management
Which of the following is not a correct action to be taken by the auditor in response to a material misstatement or a scope limitation?
Issue a clean opinion
What is the primary objective related to the audit of an educational institution's expected credit loss?
Assessing the entity's segmentation of its credit risk exposures based on homogeneity of credit risk characteristics
Which internal control objective is most relevant to the audit of financial statements?
Financial reporting objective
What is the auditor's primary concern when evaluating an educational institution's credit risk management?
Homogeneity of credit risk characteristics
What procedure would most likely help an auditor identify potential violations in contracts?
Examine contracts for potential violations
What is the adjusted trading securities balance as of December 31, 20X1, according to the fair value model used by the company?
P403,640
What is the adjusted balance of the Machinery account on December 31, 20X1, taking into account the machinery sold and traded in, and considering the company's depreciation policy?
P370,000
What is the total amount of cash dividends payable on January 15, 20X2, for Manny Company?
P1,400,000
How much was the invoice price of the Pioneer machine traded in for the Goulds machine?
P100,000
Which of the following options best represents the pretax financial income of Manny Company for 20X1?
P17,000,000
What was the yield percentage when Manny Company issued the bonds on July 1, 20X1?
10%
Test your knowledge on auditing principles and access control tactics with this quiz. Questions cover topics such as the composition of the Board of Accountancy and methods for restricting computer access to authorized personnel.
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