1.

A basic objective of a CPA firm is to provide professional services that conform with
professional standards. Reasonable assurance of achieving this basic objective is
provided through

a. Continuing professional education

b. A system of peer review
c. A system of quality controls
d. Compliance with generally accepted reporting standards

2. A CPA should comply with applicable generally accepted auditing standards on

every engagement

a. Except in examinations of interim financial statements

b. Without exception
c. Except in engagements where the CPA is associated with unaudited financial
statements
d. Except in examinations that result in a qualified report

3. Adequate planning of the audit work helps the auditor of accomplishing the following
objectives, except:

a. Ensuring that appropriate attention is devoted to important areas of the audit

b. Gathering of all corroborating audit evidence
c. The audit work is completed efficiently
d. Identifying the areas that need a service of an expert

4. Analytical procedures used in planning should focus on

a. Enhancing the auditor’s understanding of the client’s business

b. Reducing the scope of tests of controls and substantive tests
c. Assessing the adequacy of the available evidential matter
d. Providing assurance that potential material misstatements will be identified

5. Assurance services least likely involve

 a. Improving the quality of information for decision purposes
b. Implementing a system that improves the processing of information
c. Improving the quality of the decision model used
d. Improving the relevance of information

6. Audit risk consist of the following components, except

a. Substantive risk
b. Detection risk
c. Control risk
d. Inherent risk

7. In performing an attestation engagement, a CPA typically

a. Provides management consulting advice

b. Assess the control risk at a low level
c. Expresses a conclusion about an assertion
d. Supplies litigation support services

8. Monitoring, as an element of quality control policies a firm, requires

a. Identify the right personnel to be assigned in an audit engagement

b. Ensuring that personnel are sufficiently directed, supervised and their work being
reviewed adequately
c. Designates individuals as specialists to serve as authoritative sources and define
their authority in consultative situations
d. Providing reasonable assurance that the firms other quality control policies
and procedures are effectively operating

9. Specifically, the Board of Accountancy is officially represented in the AASC by

 a. Chair, BOA
b. Secretary of the BOA
c. BOA member who handles auditing theory subject
d. Chair, PRC

10. The Auditing and Assurance Standards Council (AASC) was established by the

a. Professional Regulation Commission (PRC) upon the recommendation of

the Board of Accountancy (BOA)
b. PICPA and the Association of CPAs in Public Practice (ACPAPP)
c. PICPA
International Federation of Accountants (IFAC)