1. CPAs in public practice are required to register with the QAR program under the prescribed category.Those whose audit clients are public-interest entities (listed and non-listed but with public accountability) should register under:

a.Category A

b.Category B

c.Category C

d.Category D

2. The Internal Auditor of a universal or commercial bank:

I.Should be a CPA.

II.Must have at least five (5) years experience in the regular audit (internal or external) of a universal or commercial bank as auditor in charge, senior auditor or audit manager.

a.I only

b.II only

c.Neither I nor II

d.Both I and II

3. The COA is composed of:

a.A chairman and two (2) commissioners.

b.A chairman and three (3) commissioners.

c.A chairman and four (4) commissioners.

d.A chairman and five (5) commissioners.

4. Which of the following would make a "self-review" threat to independence?

a.An engagement team member has a spouse that serves as CEO of the attest client.

b.A second partner review (i.e., quality control review) is required on all attest engagements.

c.A member of the audit team prepares invoices for the client.

d.A member of the audit team has a direct financial interest in the client.

5. The following are examples of circumstances that may create familiarity threat, except:

a.The firm promoting shares in an audit client.

b.Long association of senior personnel with the assurance client.

c.A member of the engagement team having a close or immediate family member who is a director or officer of the client.

d.A director or officer of the client or an employee in a position to exert significant influence over the subject matter of the engagement having recently served as the engagement partner.

6. If the individual has served the audit client as a key audit partner for six (6) or more years when the client becomes a PIE, the partner may continue to service in that capacity for__________ before rotating off the engagement.

a.7 years

b.7 years less the number of years served.

c.Maximum of 2 additional years.

d.5 years.

7. What is one common way to conceal a theft?

a.By changing the stolen item to an expense account.

b.By creating cash through inter-bank cash transfers.

c.By stealing cash from customer A and then using a customer B's balance to pay customer A's accounts receivable.

d.By the conversion of stolen assets into cash.

8. Opportunities to misappropriate assets increase when there are:

a.Known or anticipated future employee layoffs.

b.Promotions, compensation, or other rewards inconsistent with expectations.

c.Recent or anticipated changes to employee compensation or benefit plans.

d.Inventory items that are small in size, of high value, or in high demand.

PS. NO NEED FOR DETAILED EXPLANATIONS, CORRECT ANSWERS WILL DO.