OUR LADY OF FATIMA UNIVERSITY

QUEZON CITY
COLLEGE OF BUSINESS AND ACCOUNTANCY
AUDITING AND ASSURANCE PRINCIPLES
PRELIM EXAMINATION
FIRST SEMESTER, AY–2020-2021

QUIZ : TRUE OR FALSE

1. The scope of services under the Mutual Recognition Arrangement (MRA) includes signing off
the independent auditor’s report

2. One of the powers of the Board of Accountancy is to mete out sentences of imprisonment to
violators of RA 9298

3. Objectivity means that a CPA should be straightforward and honest in the performance of
professional services.

4. A CPA teaching in a private university is not considered to be engaged in the practice of

public accounting

5. The Financial Reporting Standards is the official auditing standard setting body in the
Philippines.

6. The Commission on Audit is the highest and final authority to do state auditing.

7. Generally, foreign CPAs are allowed to practice accountancy in the Philippines

8. A CPA is required to complete 120 CPA credit units within three years , provided that a
minimum of 20 units shall be earned each year.

9. The fundamental principle “professional behavior “ means that a CPA should act in a manner
consistent with the good reputation of the profession and refrain from any conduct that might
bring discredit to the profession.

10. Auditing Practice Statements and Philippine Standards of Auditing have equal authority.

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