ACY55 Auditing Clients in the Mining and PWT Industry Quiz

What are the socio-economic effects associated with mining in the industry?

• Increase in foreign exchange reserves.
• Displacement of people and loss of livelihood.
• Improvement in infrastructure.
• Creation of employment opportunities.

What is the primary reason for the significant anti-mining sentiment at subnational levels in the Philippines?

• Lack of mineral resources.
• Environmental impact and displacement of indigenous peoples.
• Efficient regulations.
• Increased foreign investment.

In 2018, what percentage did the mining sector contribute to the GDP of the Philippines?

• 0.89%
• 5.99%
• 10%
• 2.5%

Which commodities make the Philippines a leading producer in the mining industry?

• Coal and oil.
• Nickel, gold, and copper.
• Silver, chromite, and zinc.
• Crude oil and natural gas.

What is the purpose of the Beneficial Ownership (BO) disclosure in the mining industry?

• To complicate financial reporting.
• To improve transparency.
• To reduce foreign exchange reserves.
• To hinder exploration and evaluation.

What is the purpose of Substantive Testing related to the evaluation of mineral reserve and resource estimates?

• To inspect mining assets.
• To assess the accuracy and consistency of estimates.
• To review geological data.
• To review impairment models.

In the context of accounting standards, what does PFRS 6 temporarily exempt mining companies from applying?

• Revenue recognition.
• Hierarchy of reporting standards.
• Environmental controls.
• Exploration permits.

What type of arrangements do mining companies often enter into to bring in other partners for project development?

• Tax holidays.
• Farm-In arrangements.
• Exploration permits.
• Geological assessments.

What are the key audit matters that auditors need to consider when auditing mining companies?

• Inventory management
• Revenue recognition
• Marketing strategies
• Human resource management

Which of the following is a substantive testing procedure in the audit and accounting considerations for the mining industry?

• Reviewing employee training records
• Inspecting mining assets
• Analyzing customer satisfaction surveys
• Assessing marketing campaign effectiveness