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AUDIT AND ASSURANCE TEST QUESTIONS

Bachelor of Science in Accountancy (University of Mindanao)

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Saranillo, Marjorie C.
ACP 314 (2977)

Let's Check - Exercise 1 and 2

EXERCISE 1
Link the correct definition to each term.

a. Accountable i. Qualified Opinion

b. Steward j. Persuasiveness of Evidence
c. Practitioner k. Compilation
d. True l. Agreed-upon procedures
e. Fair m. Auditing
f. Materiality o. Criteria
g. Assertion-based assurance report p. Reasonable Assurance
h. Disclaimer of Opinion

1. An expression of the relative significance or importance of a particular matter in the context of

the financial statements as a whole. F. MATERIALITY tama

2. A person employed to provide a particular service. C. PRACTITIONER tama

3. Evidence that is generated internally is more reliable when the related controls are effective.
J. PERSUASIVENESS OF EVIDENCE

4. Factual and conforming with reality. In conformity with relevant standards and law and
correctly extracted from accounting records. D. TRUE

5. The fact that much of the evidence available to the practitioner is persuasive rather than
conclusive. P. REASONABLE ASSURANCE

6. Benchmarks used to evaluate or measure the subject matter. O. CRITERIA

7. A person employed to manage other people's property. B. STEWARD

8. Unable to obtain sufficient appropriate audit evidence on which to base the opinion.
H.DISCLAIMER OF OPINION

9. Free from discrimination and bias and in compliance with expected standards and rules.
Reflecting the commercial substance of underlying transactions. E. FAIR

10. Applies accounting and financial reporting expertise to assist management in the
preparation and presentation of financial information. K. COMPILATION

11. Being required or expected to justify actions and decisions. A. ACCOUNTABLE

12. In our opinion the responsible party’s assertion that internal control is effective, in all
material respects, based on XYZ criteria, is fairly stated”. G. ASSERTION-BASED REPORT
tama

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EXERCISE 2
TRUE OR FALSE

1. The practitioner expresses reasonable assurance in a negative form of opinion. FALSE

dapat positive

2. The practitioner must not issue an oral conclusion about a subject matter based on the
identified suitable criteria and the evidence obtained TRUE

3. Consulting services help enhance the credibility of the subject matter information.
assurance engagement false

4. The objective of a reasonable assurance engagement is a reduction in assurance

engagement risk to an acceptably low level in the circumstances of the engagement as the
basis for a negative form of expression of the practitioner’s conclusion. FALSE positive

5. Moderate level of assurance refers to the professional accountant having obtained sufficient
appropriate evidence to conclude that the subject matter conforms in all material respects with
identified suitable criteria. FALSE reasonable assurance

6. In compilation, the practitioner expresses his or her conclusion on the subject matter
information. FALSE walay conclusion sa compilation

7. A limited assurance engagement, the practitioner expresses either a positive form of opinion
or the negative form of opinion, depending on the circumstance. FALSE negative lng

8. Philippine Framework for Assurance Engagement provides a frame of reference for the
Auditing and Assurance Standards Council in its adoption of International Standards on
Auditing, International Standards on Review Engagements and International Standards on
Assurance Engagements for application in the Philippines. TRUE

9. Assurance Engagement is a systematic process of objectively obtaining and evaluating

evidence regarding assertions about economic actions and events to ascertain the degree of
correspondence between those assertions and established criteria and communicating the
results to interested users. True

10. Assertions are the representations of management as to the reliability of the information
system. TRUE