1.

Which of the following engagements is covered by the Framework for

Assurance Engagements?
a. Consulting engagements.
b. Preparation of tax returns.
C. Independent financial statements audit.
d. Agreed-upon procedures engagement.

2. The following are the elements of an assurance engagement except

a. Suitable criteria.
b. An appropriate subject matter.
C. A two-party relationship involving a practitioner and intended users.
d. Sufficient appropriate evidence.

3. Which of the following is not an assurance engagement?

a. Compilation
b. Financial statements audit
C. Information reliability services
d. Reviews of prospective financial statements

4. The risk that the practitioner expresses an inappropriate conclusion

when the subject matter information is materially misstated
a. Assurance engagement risk
b. Materiality risk
d. Reasonable assurance risk
C. Non-detection risk
5. Assurance engagements should exhibit the following elements except
a. a subject matter.
b. suitable criteria.
C. an engagement process.
d. appropriate professional fees

6. Which of the following criteria is unique to the auditor’s attest function?

a. General competence
b. Familiarity with the particular industry of which the auditor's
client is part
C. Due professional care
d. Independence

7. Which of the following may not be an appropriate form of the subject

matter of an assurance engagement?
a. Historical financial information
b. Systems and processes
c. Behavior
d. Non-physical characteristics of a facility

8. CPAs in public practice who perform assurance engagements are

governed by the following, except
a. Philippine Framework for Assurance Engagements
b. Code of Ethics for Professional Accountants in the Philippines
 C. Philippine Standards on Quality Control
d. Philippine Standards on Related Services

9. When performing an assurance service, professional accountants use

standards or benchmarks to evaluate or measure the subject matter
of an assurance engagement.
These are referred to in the Framework as
a. Criteria
b. Norms
C. Conditions
d. Gauges
10. The Philippine Framework for Assurance Engagements identifies two
types of assurance engagements a practitioner is permitted to perform: a
reasonable assurance engagement and a limited assurance engagement. Which of
the following is the objective of a limited assurance engagement?
a. a reduction in assurance engagement risk to a very low level
in the circumstances of the engagement as a basis for a
disclaimer of the practitioner's conclusion.
b. a reduction in assurance engagement risk to an acceptably
low level in the circumstances of the engagement as a basis
for a positive form of expression of the practitioner's
C. a reduction in assurance engagement risk to a level that is
acceptable in the circumstances of the engagement as a basis
for a negative form of expression of the practitioner’s conclusion.
d. a reduction in assurance engagement risk to a level that is
 acceptable in the circumstances of the engagement as a basis
for a qualified form of expression of the practitioners
conclusion.

11. The subject matter of an assurance engagement can take the following forms
except
a. Historical or Prospective financial statements.
b. Performance of an entity that could indicate efficiency and effectiveness.
C. The entity's internal control.
d. Evaluation of a capital investment proposal.

12. Which of the following is not an assurance engagement

a. Information System Reliability Service
b. Business Performance Measurement
C. Risk Assessment Service
d. Management Consulting Service

Answers:
1. c
2. c
3. a
4. a
5. d
6. d
7. d
8. d
9. b
10. c
11. d
12. d