1. Which of the following criteria is unique to the independent practitioner's attest function?

a. General competence c. Independence

b. Due professional care d. Familiarity with the particular
industry of each client

2. Ultimately, the decision about whether or not an practitioner is independent must be

made by
a. Practitioner b. Public c. Client d. Reguators

3. With regard to independence, which of the following statements is correct?

a. In case of audits of financial statements, the Code of Ethics requires member of the
assurance team, the firm but not network firms to be independent of the client.
b. Only the engagement partner is required by the Code of Ethics to be independent
from their assurance clients.
c. Audit engagements provide assurance to a wide range of potential users;
consequently, both independence in mind and independence in appearance are of
particular importance.
d. In case of audits of financial statements, the Code of Ethics requires the auditor to
be independent from their assurance team from the start of performing procedures
required by the engagement up to the issuance of the report.

4. Which of the following statements least likely a characteristic to be possessed by

responsible party?
a. may or may not be the only intended user
b. may nor may not be the engaging party to the practitioner
c. may or may not be from the same organization with the intended users
d. may be responsible to both or either the subject matter or the subject matter
information

5. According to Preface on Assurance Engagements, these are the standards or

benchmarks used to evaluate or measure the subject matter of an assurance
engagement:
a. Criteria c. Assertions
b. Engagement process d. Generally accepted auditing
standards

6. The criteria for evaluating quantitative information vary. For example, in the audit of
historical financial statements by CPA firms, the criteria are usually
a. International accounting standards c. Regulations of the BIR
b. Generally accepted accounting principles d. Regulations of the SEC
7. The decision of whether the criteria are suitable involves considering whether the
subject matter of the assurance engagement is capable of reasonably consistent
evaluation or measurement using such criteria. Which of the following characteristics is
not considered necessary in determining whether the criteria are suitable?
a. Relevance b. Sufficiency c. Neutrality d. Reliability

8. Which of the following statements is/are correct?

Statement 1: The practitioner considers the relationship between the cost of obtaining
evidence and the usefulness of the information obtained.

Statement 2: The difficulty and the expense involved are valid basis for omitting an
procedure for which there is no alternative.

Statement 3: The practitioner relies on evidence that is persuasive rather than

conclusive.

Statement 4: The practitioner uses professional judgment and exercise professional

skepticism to determine the sufficiency and appropriateness of evidence.
a. Only one statement is correct c. Only three statements are
correct
b. Only two statements are correct d. All statements are correct

9. The following statements are correct, except:

a. The greater the risk of misstatement, the more evidence is likely to be required.
b. The higher the quality of evidence, the less may be required.
c. Obtaining more evidence will compensate for its poor quality.
d. The sufficiency and appropriateness of evidence are interrelated.

10. The Philippine Framework for Assurance Engagements identifies two types of
assurance engagement a practitioner is permitted to perform: a reasonable assurance
engagement and a limited assurance engagement. Which of the following is the
objective of a reasonable assurance engagement?
a. 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.