1.If the auditor is precluded by the entity from obtaining sufficient appropriate audit evidence to evaluate whether non-compliance that may be material to the financial statements, has, or is likely to have, occurred, the auditor should express:

a.A qualified opinion or an adverse opinion.

b.A qualified opinion or a disclaimer of opinion.

c.An adverse opinion.

d.An adverse opinion or a disclaimer of opinion.

2.The following are usually included in an auditor's engagement letter, except:

a.List of audit procedures to be used in inventory observation.

b.The financial statements are the responsibility of the company's management.

c.A reference to PFRS.

d.A reference to PSAs.

3.Which of the following is the least likely procedure to be performed in planning a financial statement audit?

a.Selecting a sample of sales invoices for comparison with shipping documents.

b.Coordinating the assistance of entity personnel in data preparation.

c.Reading the current year's interim financial statements.

d.Discussing matters that may affect the audit with firm personnel responsible for non-audit services to the entity.

4.Which of the following statements about auditor documentation of the client's internal controls is correct?

a.Documentation must include flowcharts.

b.Documentation must include procedural write ups.

c.Documentation is desirable but not necessary.

d.No one particular form of documentation is necessary.

5.In obtaining an understanding of internal control relevant to the audit, an auditor is required to obtain knowledge about the:

a.Effectiveness of controls that have been implemented.

b.Consistency with which controls are currently being applied.

c.Design of the controls pertaining to internal control components.

d.Controls related to each class of transactions and account balance.

6.According to PSA 330, an auditor who plans to rely on controls that have not changed since they were last tested should test the operating effectiveness of such controls at least once in every.

a.Second audit

b.Third audit

c.Fourth audit

d.Fifth audit

7.When the auditor chooses to use only the non-IT segment of a client's control to assess control risk, it is referred to as auditing around the computer.Which one of the following conditions need not be present to apply this audit approach?

a.The output must be listed in sufficient detail to enable the auditor to trace individual transactions.

b.The source documents must be filed in a manner that makes it possible to locate them.

c.The source documents must be available in a non-machine language.

d.Computer programs must be available in English.

8.When outside firms of nonaccountants specializing in the taking of physical inventories are used to count, list, price, and subsequently compute the total peso amount of inventory on hand at the date of the physical count, the auditor will ordinarily:

a.Consider the reduced audit effort with respect to the physical count of inventory as a scope limitation.

b.Make or observe some physical counts of the inventory, recompute certain inventory calculations, and test certain inventory transactions.

c.Consider the report of the outside inventory taking firm to be an acceptable alternative procedure to the observation of physical inventories.

d.Not reduce the extent of work on the physical count of inventory.

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