MULTIPLE CHOICE

a. This factor is relevant when the practitioner determines the nature, timing and extent of evidence-gathering procedures and when assessing whether the subject matter information is free of misstatement

A. Audit objective

B. Audit Evidence

C. Audit Assertion

D. Materiality

b. The independent audit is important to readers of the financial statements because it

A. Measures and communicates financial and business data included in the financial statements

B. Determines the future stewardship of the management of the company whose financial statements are audited

C. Involves the objective examination of and reporting on management prepared financial statements

D. Reports on the accuracy of all information in the financial statements

c. The reliability of the audit evidence considers , EXCEPT

A. The practitioner considers the relationship between the cost of obtaining evidence rather than the usefulness of the information obtained

B. The practitioner ordinarily obtains more assurance from consistent evidence obtained from different sources or of a different nature than from items of evidence considered individually

C. Evidence provided by original documents is more reliable than evidence provided by photocopies or facsimiles

D. Evidence obtained directly by the practitioner is more reliable than evidence obtained indirectly or by Inference

d. In an audit of financial statements , the suitable criteria consists of, EXCEPT

A. Philippine Accounting Standards

B. Philippine Standards of Auditing

C. Tax Regulations

D. Philippine Financial Reporting Standards

e. Which of the following characteristics is NOT considered necessary in determining whether the criteria are suitable ?

A. Relevance

B. Sufficiency

C. Reliability

D. Neutrality

f. The subject matter of information includes:

A. Income and Expense

B. Financial reporting framework

C. Assets and Liabilities

D. The financial statements of the enterprise (e.g. Balance Sheet, Income Statement, Statement of Cash Flow, Statement of Changes in Shareholders Equity and the notes to financial statements)

g. An independent audit aids in the communication of economic data because the audit

A. Lends credibility to the financial statements

B. Confirms the accuracy of managements financial representations

C. Guarantees that financial data are fairly presented

D. Assures the readers of financial statements that any fraudulent activity has been corrected

h. Which of the following is NOT an element of an assurance engagement?

A. Suitable criteria

B. Responsible party

C. Audit Assertion

D. Independent auditor