Banking Industry:

You have audited ABC Bank, the compliance of the bank to the BSP
requirements would help prevent the misstatement of _____________?

Fraud

Error

Incompliance

All of the Above

The Secondary license provider for banking industries is?

BSP

SEC

DTI

BOT

Banking Industry provided a ROPA it must be classified as ?

Current Asset

Non Current Asset

Current Liability

Non Current Liability

Issuance of a Mortgage with a Customer, the bank should recognize the

collateral as?

Asset

Liability

Equity

Disclosure to Notes to FS only

Deposits from customers of the Bank is classified as?

Current Liability

Non Current Liability

Current Asset

Non Current Asset

Which of the following Corrective controls can be applied to Bank Saving

accounts to prevent the loss due to economic failure?
Insurance

CCTV

Security Guard

Segregation of Duties

Banking Institutions is required to be built as what type of business

organization?

Sole propertiership

Partnership

Corporation

Any of the Above

Which of the following are the requirements of the BSP in to the banks
presentation at the end of the year?

Statement of Financial Efforts

Statement of Financial Expenditures

Marketing Strategy

Market Composition

Which of the following are the sources of revenue for a banking institution?

Insurance Claims

Bank Loan Approval

Mortgage Loan Approval

Commission for withdrawal of Cash from different bank

Under a recent news from the BSP regarding the issuance of Fake Pesos by
the ATM, who would be ultimately liable for this failure?

Client Bank

External Auditor

Internal Auditor

BSP

For Good internal control for ATMs which of the following detective controls
are usually seen in an ATM?
CCTV placed strategically at the ATM

Daily bank reconciliation

Segregation of duties of Teller and Manager

ATM requires the input of biometrics

Best internal control to prevent the acceptance of fake bills is the

installation of a Fake money detector, as an external auditor what would be
your procedure once you have inquired regarding this Fake money
detector?

Ignore the External Auditor is not responsible for this.

Test whether the Fake money detector is working as intended

Any of the following

None of the following

Once a Client bank has been closed has been Covered by the insurance
commission of the Philippines customers of our client bank is Entitled to?

500,000 Pesos Only

500,000 Pesos regardless of bank balance

500,000 Pesos or Bank Account whichever is lower

500,000 Pesos or Bank Account whichever is higher

This Bank is usually found in Provincial Areas

Rural Banks

Local Banks

Foreign Banks

Thrift Bank

Grab Wallet can be classified as?

Quasi Banking Function

E-Wallet

Bank

None of the Above

Cooperatives are?

For Profit
For Specific Purpose

For Public Purpose

For Foundational Purposes

The Teller has what type of Function of Cash?

Custody

Recording

Authorization

Reporting

Tellers once receiving the cash is expected to which of the following at the
end of the day?

Surrender the Cash in the Vault

Take home the cash

Leave the Cash in the Register

Record the Cash Received

The Vault, for Good internal controls would require 2 Different Key
Combinations from 2 different Managers, this policy is primarily intended
to?

Prevent Fraud

Improve Quality of Service

Detect Fraud

Detect Collusion

Suppose a Teller received cash from a Customer, the Supposed cash was in a
sack, with the intention to put the cash in the vault the teller accidentally
dropped the Sack in a unclosed man hole, losing said cash in a toxic filled
manhole it was determined to be due to Fortuitous events the obligation of
the bank to its depositor would be?

Extinguished

The Bank is still liable for the Cash

The Bank is Free from liability due to fortuitous events

The Teller is liable

Liability to BSP is classified by banks as a?

Current Liability

Non Current Liability

Current Asset

None Current Asset

Capital Adequacy Ratio should not be lower than?

10%

20%

30%

40%

Which of the following does not trigger a revenue account in a banking

institution?

Commission from bank transfers of customers to different banks

Interest Earned (Nominal) from a financial instrument issued under PFRS9

ATM fees

Dividends from Investments

Once a customer of the bank Dies, the bank balance would be?

To the Bank

Presented in the Estate of the deceased customer

To the Government

To the deceased name despite being

Once a deceased Customer of the bank has failed to Collect the cash in the
bank for a long period the bank account would now be?

Recorded as a revenue of the bank

Reported and given to the government of the Philippines

Given to Charity

Given to the External Auditor(Sana Ol)

Vouching for banks may be difficult due to the banks compliance to?

Confidentiality

Bank Secrecy Law

Customer Client Relationship

BSP Funding Requirement

The Auditor was prevented by the bank to check in the name of the
customers of the bank, in compliance to the Confidentiality clause of the
Bank Secrecy Law the auditor would?

Report this as a Material Scope limitation

Report this as a Material and Pervasive Scope Limitation

This is justified, the auditor is expected to the alternative procedures to be

satisfied

Report this as a Material Misstatement

Checks issued with a double Check on the top left is considered as ?

Check for deposit only

Check for encashment only

Check for Collection

Managers Check

The client received a Check with 2 Signatories, this is classified as what?

Proper as this is just an internal control choice of the customer

Improper 1 signatory is the only requirement

Signified the occurrence of fraud

Reported as receivable

To test the adequacy of Bank Reconciliation of a client(Assume High

Reliance) the auditor is expected to?

Observe the reconciliation

Inspect the reconciliation

Reperform the Reconciliation

Recalculate the Reconciliation

The Underwriter is?

Insurance Company

Insurance Agent

Policy Holder
Customer of the insurance company

For an Insurance company, the company purchases what part of the

transaction of their customers?

Risk

Profit

Capital

Assets

The Following are Insurance services provided by insurance companies

Life

Health

Property

All of the following

Insurance companies record the collection of Premiums as?

Revenue

Liability

Asset

Expense

Insurance company Hedges the risk of Claims by Using?

Forward contracts

Reinsurance Companies

Insurance Companies

Hedging Companies

For good operation Practice Insurance companies practice the following

except?

Health and Background check customers

Customers are in a Fit Life Style

The likelihood of the customer to claim the policy is high

Fund Review
Unlike Banks, Insurance companies are given a lot more freedom when it
comes to their investment plans, this is likely due to?

Banks being prevented by the BSP to invest in high risk high return
Businesses

Insurance companies earn more than banking industries

Insurance companies have a higher change of paying investment

Proceeds received by banking companies are liabilities

Claims by policy holders is recorded as?

Expense

Asset

Revenue

Capital

A good internal control of insurance company once a claim has been by a

deceased policy holder is?

Investigate the policy holder

Empathize on the death of the policy holder and leave them alone

Immediately provide the cash needed

None of the Given

Once an Insurance policy has been issued, and that the Underwriter has
claimed all the risk of the property which of the following factor will not put
the underwriter under the obligation to pay the claims?

Loss due to fortuitous event

Loss due to Accident

Self-inflicted Loss

None of the following

Real Estate companies classify the buildings listed for sale as?

PAS 2

PAS 16

PAS 23

PAS1
Real Estate companies accrue the following expenses for real property
available for sale except?

Maintenance Cost to maintain the property

Executory Cost

Real Property Taxes

Depreciation Expenses

The following capitalizable cost for the construction of real estate property
for sale except?

Architectural Fees

Warehouse for Laborers sleeping quarters

Food in Cafeteria for the Laborers

Insurance payment for accident incurred during construction of a Key

Professional for the completion of the property

Real Estate Property can be purchased by a Customer through the following

except

Inhouse finance

Bank financing

Pag-Ibig Finance

All of the following are acceptable financing methods

Once a property has a foreclosure of Real Estate Property, who is the

responsible party for the sale of the real property?

Customer

Bank

Real Estate Company

Real Estate Agent

This law pertains to the right of a Owner of a real estate property that is
note able to pay the amortizations

Recto Law

Maceda Law

Loyola Law

LoLaw
If a customer of a Real Estate Company can only move in the property once?

The downpayment has been made

The full payment has been made

The Acquisition of the propery has been made

The Reservation fee has been made

The Following are revenue accounts for a Real Estate Company solely under
finance lease sales except?

Interest Income

Sales

Rent Income

All of the following are acceptable income

The auditor has noticed that the client real estate company does not have
any PRC certified agents, this can cause a misstatement due to?

Fraud

Error

Incompliance

None of the following

Agents of the Sale of a real property industry are required to be certified by

the?

City hall where the Business Takes Place

PRC

Board of Accountancy

Building Code of the Philippines

Which of the following is classified as a natural resource?

Pigs

Cats

Jollibee Chicken Mcdo

Trees
This is the cost paid by a Mining industry for the acquisition of the Mining
Spot.

Franchise

Acquisition Cost

Development Cost

Exploration Cost

This is paid for the search of Mineral Resources

Exploration Cost

Acquisition Cost

Title Search

Finder’s Fee

Development Cost are the following

Tangible Properties

Intangible Properties

Both Tangible and Intangible

Either Tangible or Intangible

Measurement of a Depletable Asset is at?

Cost

Fair Value

Allowance Method

Actual Fair Value

Subsequent measurement for Wasting Assets can be?

Cost model

Revaluation Model

Cost or Revaluation Model

Cost and Revaluation Model

This Cost is required for mining industries to be allowed a secondary license,

This cost would be needed to repair the used mining site back to its original
condition.

Restoration Cost at Future Value

Restoration Cost at Present Value

Residual Value

Repair Cost

Wasting Assets should be amortized using?

Straight Line Method

Output Method

SYD Method

Double Declining

Property Acquired for the Mining industry that has no future use should be?

Depreciated based on the Estimated Mining Period

Depreciated based on the Estimated Useful Life

Depreciated base on the Straight Line Method

Depreciated using the Double Declining

The Client Mining industry conducts illegal Logging activities, this would
most likely cause the auditor to.

Report to the Authorities

Decline the Audit

Accept the Audit and Recommend to stop illegal Logging

Accept the Audit and Keep Quiet for confidentiality purposes

Telecommunication Companies will record “Load” paid by the subscribers

as?

Revenue

Expense

Asset

Liability

Telecommunication companies issuing a promo plan that includes both

Cellphone and Unli load throughout the Acquisition period. The telecom
shall record this as?

Revenue while the Cellphone will be Bifurcated from the List price to get
the stand alone price
Expense

Revenue only

Revenue while the Cellphone will be bifurcated from the List Price to get the
fair value

Towers acquired by Telecom Industries would be reported as?

PPE

Investment

Inventory

Non FS account

Based on the Covid pandemic, Telecom industries would be marked as a?

High Risk Industry

Low Risk Industry

Perfect Industry

Taxable Industry

E Commerce industries must keep the following items for documentation

for Occurrence of Cash Transaction

E-Receipts from Customers

Bill of lading of common carriers

E-Copy of Customer Purchase Request

E-Copy of customer conversations

Which of the following are examples of E-Commerce industries?

Axie Philippines

BDO Online

Agoda

G-Cash

The client e commerce has set up a 50/50 Sale, the sales will be treated as?

Not Reported, sales is reported Net

Sales Return and Allowance

Sales Discount
Trade Discount

Internal controls are grouped into the following categories:

Production and operations, financial reporting, and management reporting.

Effective operations, financial reporting, and compliance.

Efficient operations, financial analysis, and management reporting.

Efficient operations, financial analysis, and compliance.

E commerce industries prepare the following financial statements Except?

Balance Sheet

Income Statement

Changes in Equity

PSEi Report

E Commerce industries can have the following business organization

Partnership

Corporation

Sole Proprietership

All can be a E commerce Indsutry

E commerce industries usually does not issue receipts, however is this

justified?

Yes as these industries does not need to pay tax anyway

Yes because there will be no proof to BIR

No everyone is liable for tax

No however it is dependent on how much money you pay to the BIR

Shoppee a E commerce industry as a Market Place , whenever a market

place user sells goods to customers who records the revenue?

Shoppee

Market Place User

Customer

All of them

Shoppe is classified as?

Ecommerce

Logistics

Delivery

Realestate

A logistics company should primarily focus on?

Delivery Services in land only

Delivery Services in sea

Delivery Services in Air

All of the above

Revenue of a logistics company is reported once?

Official Receipt is issued to the Customer

Sales Voucher is issued to the Customer

Bill of lading is issued to the receiving entity

Account is recorded by the Customer

Drivers of a Logistics company is required to have a?

Drivers License

Student Drivers License

Professional Drivers License

Non Professional Drivers License

If a Logistic company’s driver gets into an Accident who is liable for the loss
of Goods?

If silent the logistics company

If silent the customer

If silent the No one fortuitous event

If Silent the company who acquired their services

Water distilleries must have a secondary license issued by the?

SEC

BIR

DTI
BOAWM

If the water was poisoned from a water distillery company, who will be
primarily liable

The Government

The Corporation

The Owners

The Public

BONUS