1) The CPA in public practice violates the Code of Professional Ethics for CPAs if he accepts a fee which was

A. Fixed by a public authority.

B. Determined based on the results of judicial proceedings.

C. Payable after a specified finding was obtained.

D. Based on a price quotation submitted in competitive bidding.

2) The content of audit engagement letters may include additional matters except which of the following?

A. Fees.

B. Access to audit documentation.

C. Details of audit plan.

D. Involvement of predecessor auditor, internal auditors, or specialists.

3) A departure from PFRS is disclosed in a note to the financial statements. The auditor should:

A. Issue an unqualified opinion, with no explanatory paragraph, since the departure from PFRSs is disclosed

B. Issue an unqualified opinion, but emphasize the matter in an explanatory paragraph

C. Issue a qualified opinion

D Disclaim an opinion

4) The following are the management's responsibilities that constitute the premise on which the audit is conducted, except:

A. Preparation and presentation of the FSs.

B. Design, implementation and monitoring of internal control relevant to FSs.

C. To provide the auditor with access to all information relevant to audit and additional information the auditor may request.

D. To provide the auditor unrestricted access to persons within and outside of the entity.

5) Which of the following would require a denial (disclaimer) of the audit opinion?

A. The auditor was not appointed as the auditor until after year end, after the inventory count, and was unable to satisfy herself concerning inventory values by other means.

B. There is a material misstatement that in the auditor's opinion will overstate the value of an investment by P1,000,000.

C. There is a misstatement that is in the range of P200,000 to P300,000 (materiality is P100,000), but that cannot be calculated exactly because it involves an estimate.

D. The auditor concludes that there is a going-concern issue for the auditee company.