NAME: KYLE C.

DE VERA
Course Year & Sec.: BSA-3A
Pamantasan ng Lungsod ng Pasig
Auditing & Assurance in Specialized Industries
Mid-Term Examinations

Test I - True or False

_TRUE_ 1. Construction auditing provides process improvement recommendation for project

management teams.
_TRUE_ 2. One of the reasons why construction auditing is important is it aids in cost recovery.
_FALSE 3. That the asset value in relation to losses of any type best safeguarded are quantitative
goals.
_TRUE_ 4. The economic calculation is of the greatest significance to the process of reaching a
decision.
_TRUE_ 5. The pre-project is worked upon with variants and the selection of best variants then
forms the basis of the investment decision.
_FALSE 6. Improvement suggestions arising from our experience and the identified defects are
qualitative goals
_TRUE_ 7. Rural banks and cooperative banks extend loans to farmers, fishermen, cooperatives
and merchant.
_TRUE_ 8. Commercial banks can engage in quasi banking function.
_FALSE 9. PSA 400 provides guidance as to the auditor’s consideration of the appropriateness
of
management use of the going concern assumption.
_FALSE 10. PSA 570 lists the assertions embodied in the financial statements as existence,
rights
and obligation, occurrence, completeness, etc.

Test II – Identification

DEADLINE PLANNING 1. It includes the scheduling of activities for planning, completion of

the project and the checks on construction’s progress.
CONSTRUCTIONS AUDITING 2. It includes all planning and construction services in
connection with the bidding activities of the company, in respect of administration.
PLANNING PHASE 3. It offers many levers to optimize the future project and the soft issues
point in the right direction for an optimal result.
FACILITY MANAGEMENT 4. It is comprised of the different task of building management.
FIDUCIARY RISK 5. The risk of loss arising from factors such as failure to maintain safe
custody
or negligence in the management of assets on behalf of other parties.
LIQUIDITY RISK 6. The risk of loss arising from the changes in the bank’s ability to sell or
dispose of an asset.
REPLACEMENT RISK 7. The risk of failure of a customer to perform the terms of the contract.
OBSERVATION 8. An audit procedure where the auditor remains alert to the possibility that
some
of the assets the bank holds may be held on behalf of third parties.
NAME: KYLE C. DE VERA
Course Year & Sec.: BSA-3A
BANGKO SENTRAL NG PILIPINAS 9. It was established in July 3, 1993 pursuant to the
provisions of the 1987 Philippine Constitution.
SOLVENCY RISK 10. The risk of loss arising from the possibility of the bank not having
sufficient funds to meet its obligations.
Test III – Enumeration

1–3 - What are the 3 areas where a construction audit focuses on

4–7 - Give the 4 procedures for a construction audit.

8 – 11 - Give at least 4 audit scope of construction auditing.

12 – 15 - What are the 4 goals to meet by organization of the project.

16 – 20 - Give the 5 audit process in banks

21 – 23 - What are the 3 components of audit risk

24 – 25 - What are the 2 major functions of bank

26 – 30 - Give the 5 non – interest revenues of bank.

TEST III – ANSWERS

What are the 3 areas where a construction audit focuses on
1. Validating contract compliance.
2. Assessing performance against key performance indicators, objectives, and requirements. 3.
Identifying improvement opportunities to better align construction practices with industry best
practices.

Give the 4 procedures for a construction audit.

4. Planning phase
5. Implementation phase
6. Usage phase
7. Follow-up checks

Give at least 4 audit scope of construction auditing.

8. Planning of construction projects and economic calculation.
9. Application and permission for project
10. Cost control, construction and credit settlement
11. Acceptance, warranty and liability

What are the 4 goals to meet by organization of the project.

12. Coordination of the service, deadline and cost-oriented planning.
13. Project planning.
14. Execution.
15. Start-up and completion of the project.
NAME: KYLE C. DE VERA
Course Year & Sec.: BSA-3A
Give the 5 audit process in banks
16. Accepting an engagement
17. Audit planning
18. Considering internal control
19. Performing substantive testing
20. Making opinion on audit

What are the 3 components of audit risk

21. inherent risk
22. control risk
23. detection risk

What are the 2 major functions of bank

24. Accepting deposits
25. Granting advances

Give the 5 non – interest revenues of bank.

26. Broker fees
27. Commissions and fees from products and services
28. Underwriting fees
29. Gain on sale of trading assets
30. Other customer fees (NSF fees, swipe fees, overdrawn fees)