Auditing and Assurance Principles:

1. What is the objective of financial statement audit ? Describe the role of external auditing in meeting the demands for unbiased financial statement and internal control. 2. How does an audit enhance the quality of the financial statements and management reports on internal control? Does an audit guarantee a fair presentation of a company's financial statements? 3. What is the "special function" that the auditors perform? Whom does the external auditing profession serve in performing this special function?

4. Describe briefly the scope of practice of professional accountant in the Philippines 5. What are the differences and similarities in audits of financial statements, compliance audits and operational audits? 6. In the conduct of audits of financial statements, it would be a serious breach of responsibility if the auditor did not thoroughly understand accounting? However, many accountants do not have an understanding of the auditing process. What cause this difference?