Audit Theory Review

The following are regarded by RA 9298 as CPA services in public practice if offered or rendered on a fee basis and to more than one client, except:

• Preparation and signing of audit reports

• Professional assistance on accounting procedures.

• Representation of clients before governmental agencies on tax and other maters regardless of its relation to accounting

• Holding out oneself as one skilled in the knowledge, science and practice of accounting and as a qualified person to render professional services as a CPA.

An individual just entering upon an auditing career must obtain professional experience primarily in order to achieve a:

• Positive quality control review

• Favorable peer review

• Seasoned judgment

• Specialty designation by the PICPA

Pursuant to RA9298, who owns audit working papers?

• The Auditor

• The Client

• The audit client and the auditor have common (joint) ownership

• The Philippine Securities and Exchange Commission

The BOA has the power to conduct an oversight into the quality of audits of financial statements through a review of the quality control measures instituted by auditors in order to ensure compliance with the accounting and auditing standards and practices. This power of the BOA is called

• Quality Review

• Peer Review

• Appraisal

• Quality Contro

Which of the following is not an objective of RA 9298?

• The standardization and regulation of accounting education

• The examination for registration of CPAs

• The supervision, control, and regulation of the practice of accountancy in the Philippines

• The development and improvement of accounting standards that will be general accepted in the Philippines

Which of the following is not represented in the AASC?

• BOA

• BSP

• FINEX

• SEC

The fundamental principle of integrity requires a CPA to

• Be straightforward and honest in performing professional services.

• Be fair and should not allow prejudice or bias, conflict of interest or influence of others to override objectivity.

• Perform professional services with due care, competence and diligence.

• Act in a manner consistent with the good reputation of the profession and refrain from any conduct which might bring discredit to the profession.

The fundamental principle requires a CPA not to use or disclose information acquired during the course ofperforming professional services without proper and specific authority.

• Objectivity

• Professional behavior

• Professional competence and due care

• Confidentiality

These are policies and procedures designed to eliminate or to reduce threats to fundamental principles to an acceptable level.

• Internal controls

• Safeguards

• Control activities

• Segregation of duties

Under the Revised Code, which fundamental principle is explicitly mentioned to be safeguarded even as the CPA consults with relevant professional bodies and legal advisors

• Technicality

• Confidentiality

• Integrity

• Objectivity