Excel Professional Services, Inc Management Firm of Professional Review and Training Center (PRTC) Sentiago city, teabetacon zon Manile 7320308 sacri tage City, Isat 2807 130 * Angeles City, Pampanga(O917)5103332 Calamba ciy, Urgure (049) 5453807 * Oncmarifns Oty, Cavite 40917) BaSIIES (éISAVAS) Bacolod City (034) 4346214 © Cebu City (032) 2537500 loc. 718 {HINDANAD) Cagayan De Ora City (0995) 0570499 * Davao City (082) 2750048 Www. prtc.com.ph CPA REVIEW OPEN FINAL PRE-BOARD EXAMINATIONS AUDITING (Exam Goverage |RPCPA Licensure | Examination Sytlabus | [exam Code |AUDFinPB S18 | [Date ~fApril 24,2018 ‘Time | 8:00 AM to 11:00AM, of Questions |70. 00 [SET JA Lod.be Audawnig SETA INSTRUCTIONS: Select the best answer for each of the following questions. ALL questions are compulsory and MUST be attempted. Mark only one answer for each item on the answer sheet provided. Stnctly NO ERASURES ALLOWED. Erasures will render your examination answer sheet INVALID, Use PENCIL NO. 2 only. GOODLUCKIG PART I - AUDITING THEORY 1, Which of the following services is the broadest and most inclusive? 3. Audit . Assurance 2B. Attestation 4. Compliance 2. Af operational audit has as one of its objectives to: -& Determine whether the financial Statements fauly present the entity's operations. b. Evaluate the feasibility of attaming the entity's operational objectives. ¢. Make recommendations for improving performance. d. Report on the entity's relative success in attaining profit maximization, 3. Statement t: The independent auditor's opinion is. an assurance as to the efficiency or effectiveness with which management has conducted the affairs of the entity, - Statement 2: Professional judgment is said to be the halimark of auditing, while professional skepticism 1s belheved to be the best method of uncovering fraud and error in the financial statements. 7 3. True, True © False, True b. True, False d. False, False Bpidie mamas a A nas.Audsting SETA 4. Which of the following statements iSncorreci] regarding aydtt evidence and documentation? a. The independent auditor may discard working papers o. c d. after two years. + < Audit evidence obtained directly by the auditor is more telable than that one provided by the chent. External confirmation is the process of obtaining 3 representation directly from a third party. Accounting records atone do nat provide sufficient audit evidence. 5. Engagement letters are required for? All engagements Audit engagements only Assurance engagements only All engagements except the preparation of ITR 6. In developing tne overall audit strategy for a_new dient, factor not_be considered i: a. The terns of the engagement and any statutory cesponsibilities.- b. The chent’s business, including the structure of the organization and accounting system used. ~ ¢ The specific procedures to be performed to gather audit evidence. gd. The involvement of other auditors in the audit of components of the group. 7. Audit program is basically a listing of ali the things the auditor will do to. gather suffiaent, competent evidence. Which item would not be contained in an audit program? a: Stat assigned to the audit. b. List of specific procedures (tasks) to be performed and the objectives to be met that relate primarily to financial statements assertions. - Documentation of system being reviewed. ~ Estimated time required in performing each task. - Page tof 26 warortccom.ch a AUD.ACPRS. 18