Tiêu đề AUD Self Review Part 2.pdf ✅

VSA IRS CPA Review AUDITING SELF-REVIEW MATERIALS (B) Part 1: Assurance Engagements & Standards (15 MCQs) Q1. Which of the following is not an element of an assurance engagement? A. Three-party relationship B. Appropriate subject matter C. Suitable criteria D. Audit evidence must be obtained exclusively through confirmation Answer: D Explanation: Evidence may be obtained through several procedures (inspection, inquiry, observation, recalculation, etc.). Exclusivity to confirmation is false. Q2. An audit of historical financial statements is classified as what type of assurance engagement? A. Direct reporting B. Attestation C. Non-assurance service D. Compilation Answer: B Explanation: Audit of FS is an attestation engagement since management presents assertions in FS and auditor gives an opinion on them Q3. The fundamental difference between reasonable assurance and limited assurance is: A. Scope of subject matter B. Form of conclusion expressed C. Independence of auditor D. Responsibility of management Answer: B Explanation: Reasonable assurance = positive opinion (audit). Limited assurance = negative conclusion (review) Q4. Which body issues the Philippine Standards on Auditing (PSA)? A. IFAC B. BOA C. Auditing and Assurance Standards Council (AASC) D. SEC Answer: C Explanation: AASC adopts international standards into Philippine context Q5. Which standard applies to assurance engagements other than historical financial information? A. PSAs B. PSREs C. PSAEs D. PSRSS Answer: C Explanation: PSAEs cover assurance on non-historical subject matters Q6. Which of the following engagements provides no assurance? A. Audit B. Review C. Agreed-upon procedures D. Compilation Answer: D Explanation: Compilation does not express assurance; it merely organizes financial data Q7. Which criterion is not a characteristic of suitable criteria in assurance engagements? A. Completeness B. Understandability C. Objectivity D. Neutrality Answer: C Explanation: Criteria must be CRRUN (Completeness, Relevance, Reliability, Understandability, Neutrality)