Nội dung text AUD Self Review Part 2.pdf
Part 2: Types of Audits & Assertions (15 MCQs) Q16. The primary objective of a financial statement audit is: A. To detect all fraud and errors B. To determine operational efficiency C. To express an opinion on fair presentation of FS D. To verify compliance with government regulations Answer: C Explanation: The goal is to give reasonable assurance that FS are fairly presented in accordance with applicable framework (PFRS) Q17. Which type of audit is most concerned with economy, efficiency, and effectiveness? A. Financial statement audit B. Compliance audit C. Operational audit D. Forensic audit Answer: C Explanation: Operational audits focus on efficiency and effectiveness of operations Q18. Government auditors primarily perform: A. Compliance audits B. Operational audits only C. Financial audits only D. Reviews of FS Answer: A Explanation: Government auditors ensure compliance with laws, rules, and regulations Q19. Which type of audit report is most likely to include recommendations for improving processes? A. Compliance audit report B. Operational audit report C. Financial audit report D. Review engagement report Answer: B Explanation: Operational audit reports include efficiency recommendations Q20. Which of the following is least likely a reason for demand of FS audits? A. Conflict of interest B. Remoteness of users C. Expertise of management D. Financial consequences of decisions Answer: C Explanation: Users demand audits because they lack management’s expertise Q21. SEC requires an audit if a branch of a stock foreign corporation has: A. Assigned capital ≥ ₱1,000,000 B. Total assets ≥ ₱600,000 C. Gross sales ≥ ₱3,000,000 D. Revenues ≥ ₱1,000,000 Answer: A Explanation: SEC audit requirements include assigned capital of ₱1M or more for branch of stock foreign corp Q22. Under BIR, audit is required if gross annual sales or receipts are at least: A. ₱500,000 B. ₱600,000 C. ₱1,000,000 D. ₱3,000,000 Answer: D Explanation: BIR requires audit for VAT-registered taxpayers with annual sales/receipts ≥ ₱3M Q23. Which of the following is not an assertion relating to account balances at period end? A. Existence B. Completeness C. Rights and obligations D. Occurrence
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