1. Specifically, the Board of Accountancy is officially represented in the AASC by

a. Secretary of the BOA

b. Chair, BOA

c. Chair, PRC

d. BOA member who handles auditing theory subject

2. Which of the following statements about the standards on assurance engagement is (are) valid?

I. The Philippine Standards of Assurance Engagements always apply to an assurance engagement being performed by a professional accountant.

II. Where a professional accountant in Public Practice performs an engagements intended to provide a high level of assurance for which no specific standards exist, the appropriately applicable standard included in the standards on Assurance Engagements are the followed.

III. Whenever there is a conflict between the standards on Assurance Engagements and an Existing Philippine Standards on Auditing, the professional accountant should follow the requirements of the standard on Assurance Engagement.

a.I

b.II

c.I, II

d.II and III

3. The following statements related to Philippine Standards on Auditing.Choose the statement that best describes the meaning of PSAs.

a. PSAs are acts to be performed by the professional accountant.

b. PSAs are measures of the quality of the professional accountant's performance.

c. PSAs are procedures to be used to gather evidence to support management assertions.

d. PSAs always apply whenever a CPA performs an engagement.

4. A professional accountant who does not consider and apply the guidance in a relevant Practice Statement should be prepared to

a. Explain to the Board of Accountancy tribunal why the practice statement was not complied with.

b. Bear the consequences of such non-compliance, such as suspension or revocation of license, plus imprisonment of not more than two years.

c. Face the shareholders of the entity, and explain in the meeting why such practice statement was not complied with, provided that the explanation is also put in writing, and signed in the presence of the Chairperson of the Auditing and Assurance Standard Council.

d. Explain how the basic principles and essential procedures in the Engagement standards addressed by the Practice Statements have been complied with.