preweek auditing theory 2014

7/25/2019 Preweek Auditing Theory 2014

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CPA VW SH PPPS 1

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he Pilippine Faework fo ssrace gag!mets dentfes wo type of asrace

egagement practtioner s ee o per: a eaable assrace egagemetad a mited assace engaement Whch o he flo"in is the ojectve o a imitedasuace egagemeA. reducio i auace engagemet isk a vey low evel i the circ01tances of

the egagemet a a basi fo a dicaimer ot te practioer' coclusion.

B. A reducion n asance engagemen !.k to an aceptably low level in he

crcumstaces of he eaeme a a a a oive fo of expresio o te

ractoer coclusionC. edo aurace egagen o eve ta aeptale n the

crcumstance of the enageme as a ai egae form of expeo of heractitione concuon

D. A reductio in arace engagee i1: o a eve ta s acceptable n he

circumaces ofe engament s bai a moded om o expeon of heatone' concluso

Te subect mae of an asace en2eme1 n ae e olowg orms, A. Htorical o prospecve facial taeme

B eorance o a ety tat cod idice fiiency and eectvees. C. Te enty iternal coo. Evauation f a capia investmen oa

3 i er; to the adt pocedure tha ditor jdgent ad bsed o te Ssae eemed appropriate n the ccumsanc to Kieve te oective o a adit.A naycal procedres. amplg

B cope of an adit umentaton A rm o ma e police ad pcedue sch as notfing proesional peonel

as to he names o adit cets aing plic ed eces and conimng perodiclyth uc peroel a roii lat no h i done to achveefecive qaliy coro in whic of e ollog 9reas? : cceptace ad cotace of clienB uman reurces.C. thca equremen.D. Leadeship responites or qality win e

The decio a o we e ciea a tabe invoves condeng hete hesjec matter of he assace engageme s capae of eaoably coitentevaluation o meauremet sg ch ieria hic of the folowing charaeistics sot csidered necesay deemn ethe e crie are siable Reevace C ailB Neutaly ucien

hich o the ollowig coditos mos ke w< Ud pe e greate ris in acceptin anew adit eggement>A. Saff will need to receded o r hi0 e ie.B here wll be a ciet-mposed coe lmitC e rm wl ave to hire a exet in o ea.D. Te clie inancia reog se lac o yas

s a condtion o oaining a Joan rom Mero Man as Cor ir to suman audite aemento ancial postio bnote ae staements of icome, changes eqiy, or cash ow. Maam woul like to -1a; , CPA audt on its taemen offnancal positio. Uder hee cicumses rl1 :PA It My not audt ony aasm' ae: f fr ,' incial psiton the amout of te loan is

matera ohe fanci stemen


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A. Business faiure. \dit iskB Audi filure D. /\ of e above.

16. Whichof te folowngsaemens is fse?

A. The frm shuld bain wren nr of plance wh pces andpocedures on ndependence from al fi personnel requied to be ndependet. bytheCodeofEthics.

B. The frm should establish polce an procedures designed to povde it wth

easable assurne that the frm d t pernne cmpy wh reevan ehcalequemens

C. The frm's quaiy control poic an crcedures need no be documented and

commncated o the fm's persoe D. The r shouldetabish pocies n pocdues equiing appopiate documentatio

o provde evdeneoftheopeans o ei :helemen o itsystem of quaity conto.

17. Criteria eed to e available to the intendd JSers in a assuac1'ngagemen o alowthem o undestand how the subject mae .as been evauaed or measured Which othe folowng is not among the ways whic.1 these ctera could e made avalabe to

te ntende uses?A PubcB Though incusio in a clea manner i1 te presentation o the subect mae

information.C Trgh cli n he ms oce poic anua.D Though nclusion i a clea manne in he ssace eo

The most eale poceue an audito o se o te the exstence of a client'snvento at n outie loton to:A. Obsee physca coun o te ineno ms B rac he ot on the vento liri genera eder invenoy accounC Obtin a conimion om the cln idic


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B Te resus of he proceduesth W!epplied tend to compense or the

ocedure omed c. The udto's opnionws quaied bec!;e of depre fom nancl re

pofng

sndrdsD. The resuls of he ubeqen peiod's tes: of conols make he omite procedueless impotant

3 The uditors is assessmen roceres shoulj lways nde he oowg, excepA Inquiries o manement and of otes witn the entityB Anltic rocees.C Obsetion nd ispecion bsante es pocedures and tess o' ! 1:

Te audios risk assessment pocedures A. Bymselves, d not provde suficet prorae dt evdenceon which to bse

the audit opnon.B. Soud not consider inomin obined om e dto's previous exerece hte ntit

C Are esigned to etect mateial misstteens at he sseo evel r classes oftransactons, ccount baances nd discloses.

D. Ae esge o test he efeceess o h


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nce nd peentton nd dcoe

C Tr houd wy be a epr eo eted o cto of tncion nd

D. The competene eton de wit whethe a tncton nd eent ttho he bee ecoded hve bee recoe

Whch o the oown1 wod est ky af: the ppopitene o idence ibeto n uA e mpg t1od loyed b . d obi n a s9( le o such vice he eence o ch edence to he al semen eW beg e.C. he ionhp of the pepe o uc c o the entt beng audted The timeliess of ch vc

72 Adtrs may se positve and/or natve o of contion eue. An audiomost ikely w eA Te negatve orm or smal alancB positive om whe the combned ass!SSed level o nherent nd contol isk

reated assetons is acceptay lo and negtve m when t unccepyih

C Te frm o conrm al baances readless o size A combination f e wo foJS he )v rm used f tade balaces and

the negative rm for other baan.

o reuc the ik asocated wit actng Nx esponses o requests for onrmatoso conts receivable, an aditr m nspet the faxes for ges atrt nd consder tem to be acceptable

no .B i aes be nnespo vlu them as unadjste dcC Vry the sources nd coen x 0 s hs Examne te hppn cm pv2,ic fo th eistece ssen .

4 Wich o the llowng ttemens s r he adto shall determne wer n ss " adit wor peormed, te

ait has identifd one more cn = l ntl . f th adior has idenied oe o more tena conol, he air

sall eemine, the basis f ead 1k

m wheterndv

aly combnation, theyconsttutesigifantdences.

m.The auditor sha ommucate, oy r in witing, gnfcat deciecies in nteal

control idetifed during e audt t thoec iarged wh goveance o a mely bais.

A I l. yB I . Ai f t abov

'15. A fciency may e improved whn he mping uit is eed as he indiviu l

moetry nitthat comprise the population . rhis techque scaled

A. Stratifcaton S c cB. Ram V weghd seleion

76. In plnng tstc sample r a s c< ros, a au nrese the expece

ppulatn devati re (EDR) m:he

pnr,-ar'. becaue f he relts of the

pror yea's tes c0nrols ad e eall c rnme adtor os ikey h s h A Rs o ssssig contro s w C. :w samig skB Sp sz T.)lb v rate

Whih w sm is cei stcal smpng s f?

p;, s--

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A. In deteminng the toleable rte, a ad :? consides detection isk and the sape

sizeB: eviatons om specifc conto activits at a gven ate ordinay resut i

missatemens at a owe ate.C As the popuaton sze inceases the sampe size shoud ncease propotionaely. . here is an nverse reaonship beween expeced population deviaton rate and

the mple sie.

Th irm sha obi wrtt omaton of :omplice with its poces and proceureson iepedee om all rm persone eqed to inependent y elevant eicaleuementA At least aalyB. At eas montly

C At !ast sem-annual lyD At te completon of each engagement

On Jauay 205 the TANYA c red a no om s pmay supples that

eeiv mmedael all whoesale ces wold e esed 10 % On te bas henotie, AA revaed i Decembe 31 , 20 nnto o relet the" high e cos s aesut saemen nancal posiin ree invento stated at an amount hghethan i net realable value The inveto ostued a mateial ropoion o otal

asse; howeve th efect of te evaluat ws maal to current assets but not t otal asse or ne come. n repong on e company's inancia statemens for teyear ended December 204 in whch inVnto s vued at the adjused amou, e audor would mos likeyA. Express an unmodied opin ion provde the nare of he adustmen an te

mouns invove ae disclosed in note t he finaca atement B. Express a uaied opinonC iscaim an opioD Epress an adverse opn ion

80 SAMANTHA APARMENS CO. completed nsrctio ad began to lease a 100- unitapamnt o May 8, 01. ung ne, 0 un were leased and an additioal 0uts wee eased n uly 201.

Durg the month o May 2013 he compan charged o epense P46,000 he cos ofadveng a grand openg pay ad te advesng agency ee or panin the amain t December 3, 04 e sent of ancia osiion eected P7000of intal dir cos ned by e mpa nludng ommissios and lega ees aid n

negotating t e ease. Tese ina l dec cos aeshow a aditio to e caingamount of the leased asse and s bein ecgnied as an expense over the ter f thease on he same bsis as he lease income

During your audit o the compans nanca aeents e year ended Decembe 312014 (conduced n accordance wh PSs), o f oher ha those described abovcame to your nowledge that woud cause o opnion o be othe than t e nacastatemet wee presented fairy accodance wh Philippine Fnanca epog tandads

Wha ypeofopnioshouldyou eportcont?

A. Anadverse opinion A dsla e of opinio s. A unmodifie opnion D A uafied opinion.

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CP EVIE SCHOOL O HE PHIIPPIES 2

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Whch o the fl low ing ocedrs s odinar 1 pefrmd by an aontant durn anengagementtompl thefnancal statemenGan eniy?A Make iqies o e emloyees and sen anaemen readn ranaon wh

relae a1es. B Deermne wheher here s unial t a he eny's ably o nne a

ong concenC San he nys ecords or he ped u ae h baance shee dae eni

ubseen event req_ing dcloe. D Consde wheher he nanal taemnts


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: Aer tesing a lien's nenal nt0l aties, an ditr iscove a nu mber f

sgnfcant decieces n the peon bf " ent's ntenal controls Under

these

cmtancestheaditr mokelywuld A Issue a dsclamerfpnion abouthe nt econtrs spaofthe d1s ep.

B. Increasehe assessmentofcnrol risk nd ncreasehe exen of subanvees.

C. Isse a qu l ifed ninohis nng as P"t f e ar's ep.

D Wihraw m he auit beause he ite;l nrls re inefeve.

13. When an ar es the inerna onts mpuerized acunng sysem, whic of

the folwing s true01 the te data ppch/ A. Teaa reded to dumysbsida so the cn be exrced frm thessLem

unde acu opeting ondtnsB. Tes ata pgm nee not be _:or-JC by th do.f,

e lients er applaons. C. Tes ta prgms sual sit f al po;sibevlid and invlidcondtions regarng

ompline wth ntena cons. D. Test a ae pocessed wih he c1en's computer and the result are ompared 1th

the adto' pedeermine resl

4 An auit supeisr reviewed the wor peed by he sta deermn if he awas deqatey peformed The spesor plished this b priar eviewng whhf he oowngA Checiss lical poeues.B. Wong ppes . Fancal ement.

5 In which o he ollowig circumnces is Jbstnv testing of accon receivble

befre the bane shet de most appie A he clien has new sales ncenive progr1 pleB

tna contros drng he emng per e eciveC her is a high urnover senr mngemtD. t s rst ngagmnt of w

Whh of te olown aers s n ut ,uire communicaeto hose hagd wth gvernnce?

A. jusmens tht er suggested by h .ud and ecoded by mnagemen hthve signicnt e o nis a1a png pss

B he audtors consideatn o k rs n essing the rs marlssteent arisng om the msprpr JOn asse

he s o t dr's nali l p( s pmd the eview stge o th"enggement that dat signicn varin om expeted unts.

. Chags n th audiors prelin ud nt abou materialit th were ae b

proectng the s o sttsc smpg ortes trnstns Whh the ollowig stteges m$ ikey coud impove he respnse at o the

nmatons o ao a?A Rst th son o ao ned to those cstomes with rge

alancesB nue st o tes o ivs t : e cstomers account blnces Expain o stoms at disrepnce w!I b invesgte by an independent thd

ty sk cstoes to spond t te utin qs d t the adtor by >:.

8 . A CPA rm i complug the feldwo;. an :t of Sween C o t cunt yded

_Dcember 31. 1-h

e manar in chrge o.eu is pg the ina seps n

h evide

ce ccumulatin phse of te udi ad nots that there have been evelngs Swden urng he yea undr 1 dit. Whch the fllwing iems wold

md1cate thr could be sbaI dob abou Sweden's bil to conue s a gingconrn for a easablepidoftime?A. Cash infuson byavturecapl frm .B. Recurringo:kg apital shoage .C. Alackof sigfcanontrawithewcustmers.

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D. Ter bt r w w bnk .

Wic of th flowing pus w "ui ms ik p obi g evideceaboutsubsequent even?

A. Ex chgs t qutd p:s o ivst pucse sc th yeB. Compae e laest avaiable intermfinanci.1 nformaon with the fnancia l atemens

big pr po . C. Apply nytic rocedures to the dei l of e bance sheet accouns tha vee

tt at trm Oats.D. Inquire about pyl cecks tt wee erded befoe e ye end but shed ae

e.

20. On Mc Guzon CPA, express umo opnon on te nncil satemsf Apx o n July Gua's na nsc gam dscv namnps observe Apexs pysl inv1?ntoy Gaz b ves hat hs mssn

pis nzons ly to sppo u ,1d opinion. I Apxs ets ecur lyn Gzn s opnon, Gano p s:A Rqus Apx's gt con t o s cs t s pinon

su be reid on

B. Rssu us us o w ,1 "ot e" pgp sb t

epture o PSAsC. Uak to p lternve poeres t woul vd ss !s

r Gnons opinion .D Advs As b dcs tdsclos ts vlmnt n s next interi repo

A lent is atnt ig; st gs jo opeto. Wi w tes wuld s b ed i as sps uts ?

A A c f nil itgtion i ote ntts o ete t uavabl veiti ant inngeent lwsuit A cs cs ss an t! stegy cut p b i

mngeent o resolve e lwsit C A vu e pbb o ss stteent o t oun o g ss

vb uc s esbl ;sbleD. A vu t ilt o ent o ntiue s oing onern i e vdc s

nfavorable ad maxu dags ar a' rdd

22. !1

.rn aessing he compeence ofitenl quitors, an indepenen CPA most kely wouldobi nforao bu e Inlene of neent on te sope o te nern uditos' uties.B icies g l us t t uit otee Qu f t inten us wg dcentin Entity's bil i cu s ging cnc easonb l rd of t .

A t s la data ente whee 3ess is te to ahzd psHw n utor est etene te eecieness s control ctvi?

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A. Inspectthepolicymanuaestablishing hs onrol activy.

B. Akthe che tehnoogyoferabout known roblems.

c. Obsevewhehertedaacener ismonitored.

D. Obtain a listofcurentdaaceteremployees.

Toprovide assace haeachvohe issub;nd ad aid onlyone,aauditor st

likelywoldexam ined sampeof pa1voucher. andetermineehe eacvouche 15

A. Same "paby techecksiger

B. Retuned oevoches payableepamt.

C Supped bya enor 's inviceand pch2se orde.

D. rrenumbee and accoted fo.

f d tor's test oeals todetec a possible understatement of

If the obJect1ve o an au 1 th .

sales,the atormotikeywouldtacetrans: iconsr e.

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B. Acep he enggment rovied 1strb of e audor's eo lmed o teenti'smanagemen.

. C. Not cep he engemen ne ao ened o ud e ull fnnc emen

of the eny D. Not cep e enemen bece o d o wold be nmon o reen o

expresa iecemel opno.

An au as deied h controlr vi h bnk ecoaio as a otrol oe I coneco w- tes, he udor !1vews (e conoer ndernd he

specfc data revewed on he reconclao. In 3itn, e audtor vees that he bnkreconcion popey prepred t a evewed by e onolle aevidence by her reetve sign-os. Whc )f th llowig types of aud pcedurs

(othese acons illu strae? '

A Ovon nd inpecon o ecB. Conrm ion and performancC. Iqi nd nspeon o recordsD. naca proedre nd epence:

2 c o e olowng s ea ey ucov ad?A. Exerna adios tal coolB. terna audors D M 3agemen

" wo veriding consdraons ec h mny as an adit can accumulat evdece:1 uic appoprae vdence s b accumlated o meet he ados

rfesional resposibt2 Cos of accumulang evidc o b mid.

In eaag ese cosidatn he s 1 pnt !hn h (rcB h scod s more mpon han th W

hey a eualy ipa.D. is mpssible o z m

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74. W ic of the folowing s not rdnrily perormd rspne o he rs managemtvrd? vaatng he rata fr sgnca nsa transactonsB. Obsrv count of nvnt at a latonsC. Revew accunn stas bD. st pprpras of journal and < dstmens

75 In adin a entty's cputzed pol trats an audr woud be leas likyo us tes data test cntos cocer gA. Ovrpaym of epy r ur t wed.B tl an iibton f ncaim hcC. Withhldg f taxs and Social Scrt tinsD. Missing eploye dniicao uer

'6 n udo aed P8,000 olera le r a asset wih a accntalac 300000 t ; sap f ev 0 itm frm heppa at repsee h a cm 1t baac and dsoved a t

vran Pl0,00 {ll,00 a : mn 6 undrstateens) Unrths crcsac, dit s !ey wod ncu aA Te ast account s ay e caus , erabssemnt xceeds he net

o prted aual versms n usemB. h asst accunt is fary stad bcae t total prd issaement s ss ha

t trae senC. s a naccptaly hgh ris tha t1! ata ssamet i the popua

xcee t tla isatet ca ttal cd sstatent ecedsth oerable isatement.

D. Tre i a unaccepby hgh rskhat th tolabl ssaemen s oe ha he ofactal oversatement ad udrs!.

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RVEWS OL T )

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7 PSA appl ies toA Revew engagemensB. Agreed-upon pocedues engag Emens

C. Compation engag emensD. Audt o nancial statements prepared

frameok

ii n accordance with a seca pupose

78 . In an audt of pecal purpose nancial s:tements, the audito shall obain a

undesandn g of e purpos r hch the financ sate1nts are pepared.L e itended uses

ll Te stepstaken by man agement o deten 1 ine atthe applcable inancia reporn

amewor s acptae in the cicmstasA ad oy I , ad IB. II and III onl nd II nl

. Whne a repo, fled n a pted m degned y authorities calls upQn :edependt audto t mae an sseo aud eee is o justfd, h

adior should

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A Wthdaw o e gagemet. Sbm it te fm wh quesonab e e! y iedG Rewd the m ath a epae eoD Sum sandard repor wi expanaons

80 A aud may exes a on ent s accon ceivable balance even he adio hs dsclamed a pi te nna statements taen as a whoe prvidedthe

A. Repor on the accuns receab

prented separately rom te dislamer o

opinon he nancia saementB Audio also epo on the current ae o io o the enty's baance sheet.C Ue o the epo he accouns ecevab estried . ep accu recevable dicoes e re:m he discamer p

e ci satem

a ma egaeme e mm a tateme ada w PSA 0 whe

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A The dt ha bee eaed o d m adt accordace wih SAs heaca amt m wc e m< \ ame ae e.

B. Summar na cia ements are disnutej.on ly .to manaeE and he board ofdirectors.

Audito descbes e addtonal vie rocedre perormed on the smm


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CPA RVIW SCHOOL OF T HLNS ATPW-7503

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l Whi t ollwng defns h spc equi emens of Scus and Exchan9omis (SEC) rgarding fnanci rEpngt ntitis rgd hSEC?A. SRC Rule C SRCRule@8 B EC Cicula D SE 'Bu l ens

SRC Re 68 s amende, s eeve or at-: fnaca staemens cveg pesene Dmr 31, 2011 an wa, an r inei nacal staemens satne irst quae of 212 and theea.

Pa o S Rue 68 as amee, ea wt he genea fanca epngeqreens o e S to the foowng entities:

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a. Soc orporatons

b . Non-stock corporaons

c. Banc oces o stok encorporatons

d. Banch es no-stoccopotion

e egna operaing eaduaeof foreign corporans

reshold

pJd up ita ok of PS0,000 or m

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18. Whih of the lowng procedu

unableto providehe aud't .es

.1s maprorate when the entity's maageme s

1 1nrmato requimPnt7 A. Teauditorshal pepareth d'. . ' B Th d"eau 1 torma10 equiemens

e a.1tr shal onsideassistinQhe cief: for example 0bypreparing a pro aeo

d

ciaton stateme or schedule ormat1fr the clientto complete o use as.au1 e.

C. Theto sall dcusswihma

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agement a ,1d/o those cargedwih governance epossbltyfosouc the prepato 01 audt nfrmaton reqirement t6 hd

aseceprovders. D. The audtor shal valate the resonswh1 ianagement is nable to prepare he

audtfmaton eqiemens.

19. I stuatos where te client providd ncompete an insufcient audi infrma

eqemen, theaudiorshal considethe flowing exepA. Commuicate n wrig he ssueand coErns onthe ncomplete and insuficent

audt nformao requremenwih .mamgerent nd/o ose charged withgoveranc.

B. Diu i audi nomaton reqremn an be esed o meet adequatey eneedsofthe auditor.

C. Expres a qaliedoan advere opnn.D Dus wth anaement and/or thoe aed w goenane he poby o

otocn the completon of the Inoio to third pay ece provid .

Te term "nv nn mn s genealy used at present to refe to a to nomlete or naudted nancal staee:; accopanied by a repot of an extenaaudto wo as not yt ompleted hs adt o u nanal atemen.

Wh o e owg satmen and onent of nte-nkonimatons s A. om and onen of a conraton et eter w dpeM1n te purpose r

whih t s equire, on oal pract a"nd 01 the requesng bank' acont.

B.

Not al nrmaton or whch conrmaton uualy oght w be requred at tesametime. e cormaton request old be prepaj n a ce and onse anne to ensu

ready omprehenson by the conirmng kD. Weneve possb he onrmaon rqes sould e prepared n te laguage o

the equeng ban o in the anguage noaly ued f busine prpose

Whch o te folowin are requred to repoed y he exeal ado to BS? ny matera ining durng te audt nvng frau o d ionety wihwi reduce

apa funds by t eat one pern % I Admen o potental loses amounn o at leat one perent ( %) of capta

funds o the bai


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e. e is that coa ae cmen ncy or are no legaly eoceable in te eevantursicn i i e otra are o e eced or whee he couterpares pra.La and dumna sk

.. e risk o loss asng rom the changes n th I >n k's abiy to se or dispose o a asset.

quid sk

g. e sk associaed i the impeeios ad jetivy of valuaton moes use todeteme he vaue o asse o labti. Moelig ri

h. e rsk o dre or ne oss rsutg fom naeqae o ale ntena proceses peopean systes o om exenal evens. Oeaca i

i . e rsk o oss aising fom averse chages marke pres cludng neest raes oreignexchage aes, ey ad commoi pices rom moemes the mark pices ovesme. P i

j . rsk o loss arising om aiure to compy wh rgu o ega reiremet i theelevnt jsdicon in whc the a opera Rt

. The s o ailre o a stomr r oerpa} o err terms o a ota hsau ree e nee b rpe e aed tscti h anoter at he crt mareprice t is sometimes caled pomance

risk Rpt k

). he rs o osig sinss becse ngaivel opnin a consequeta amage te

bank's eption arsg om far to pope1 manage me o he above rss, o fominvovement in improper or ilgal acvtes y e bank o senor managemet sc asmoey laundeing r aem o cove p ossEs. Rtoal

m The risk tat oe se o a ansaionwil b Sld witho vau ing eceivd frohecustome o counerpary. his w geeray rsut in oss o he an of the full princpalamon. Stm k

Trsk

olss

asg from h s

i li

o t ak o ag suiciet uns to mee 1oligtio o fom he ans ai to acces capital makes to raise reqired nds.Sv risk

o. The risk o lossarisng wena couterpa's olgao is otdeomat I thecoepatysom cureny. hecouterpaymay ot otain ecurrecy ofthe oblgtionirresective o the contepays pacar nacal condto Taf ik

4 In te exeise of s power o o a O\esgt nt he qy of ad, te BOA

25

6

ze t _ Depament f e Pil Iit f Cid blcoua (PICPA) oduc a deede u, aal; evew of he al

o au of fnaa aeme.A. Qay Aane Revew Qa o Revew

c. nepee Qa AaE ReewD neeen Qal Coo eve

Teoperao of he Qaly Assuace Reviewepamen (QARD) f te PICPA sa besupeisedya/a

A. ExecutveCommiee

. upesory oa

C Ovegh omieeD A uabi lit Bar

W f e fllwg s a incore saee conernig e erm ofie othe

E tvecmmeemembes? ecu

ofc ofe arma and me1ers shal b co-emswih their

A Te ern e BOrCPunles epac

ed eaer ye Baror PIPA.respeve term

f Carm ad ebesncasesal emoetha3

B. Tetem of oc0 e

eane be aeprac

efpublc

C. Te arma and me:bers may

betoea rescons mposed byheBoar.

accountan urngher em, su

J eeshal befromeBad'5appintees

D. e ai rma n f e Eeve Comm

'

Page4 of 6 ;1es

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29/31

:

27. TheHadoftQARDwwilb A. ChiefInspector

appo. n9_by :he ExecutiveCommitee sthe

C. CuefuditorB ChiefofAdmnistraton 0 Cif li ssurae ReviewerWh sponsblfoe non-tcnca aspecofeQARpgram?A. Chf Insptor

Cief f Amnsta sssn e nspetorQ hrmn o the Exutve mmttee

he AR orm covs Ps n u AcounngB Govenmnt

Com =ce Indur Edu/Adee

C i pubc pace ae eqed reg1!;er wih e pogam ue hepesced caegry. Tose whose cens are pubc-iteres eies (ised ad olisedbu wi pb lc accoabiiy) shd ese je Cego A C Ceg1 C Ceg t DS 9 prvis t CPA ptone shl b rrd n ran wt fllwngcat:

CategorA - gion fo CPA pactii1ers hndlig clen ha use the IFRS orthir Pippin quivaens. Te wud cver CPA practiione aiting blc-ineret ( a n-t b publ OUnabl).

Categor - ran C atr an nt ta e e IFRS r rlppn quvan r Sm an Mu ;iz erpr

What s e effeci de 'of e OA R!ol\ C. 88 Series of 00B) prescrbng eres ad regutns r h ccredttin of aG nng eaers?

Jne , 208 De:er3 , 88 Jue 0 008 e W, 2008

2. Which o the fllowng requirement f he dito of acuntng teachers shal nppy o tose CPAs eady egaed teacng as of he effectv dae of e Ruesand Reguatins

I. Pssess revan Maste's deeIL om leo o un o reevat uctn ujcts fom he CHED egzed

sholsIII. A toa o 3 yeas menngf exeenc actal accuntng work eher Puc

Pracice Commerce & Indust or vern en secorV oof that the hs ndergn tnng Prfssna Educa (CPE).

. I nd I only n IV nly

8 I n II only J I ony

The folow se ree o requ eme mpee is of reeeuo sbjects or cceditaon o aco tng teaches Which is incorrect? Fr roe o an e e rned rom ndegade

euctn pgra from ga gee ,gam ! ,Y her Edusuo (I) recogn ized y H

B e nits my e ere fm n-vce or nuse trnings o relev duton suects fered y scos ta ng centrs

. The nt ma be cmnaton of sece trangs ad us eed in nndegdue o due educton pr

D. PAs wo he pss he Tecers d Exam and ae ese Profeson Teacers hould ern te 2 nt tug sece r inse ngs

34 Whch t flwn shal e cnsi p o coce wh e P reqreer cceton o cuntng tee7

Cerfco o ro cede :P vdes ssued by e PPA.

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30/31

RYWHFEPIPN(CA

l

3

.

II. Ceficate o Atendance or other pros >r meanngul pacipaion in other CPE

pograms as appoved by he PRC/CE Council 'pon ecommendaton of the PIA

of he in ivdual CPA of a mn m.um of i)y (60 ce"d unis eaned or the pa

immedae 3 yearsA. only C Ehe or IIB only Neihe no I

i3 he ecate of Accreditaion iued by heR n acconting eacher hal

A Be vald 2 yeas and renewable ee yarsB Be vald initaly or year and eneab analyC Remain in fll frce and efe nless revoke, cance!ed o withdrawnD Be vld for years and renewale eve y a

According to he ranto rovsons of he OA Resoon No. 88 any tenedfu]time/u load acly meme who does not mee he accredation requiremen a of te

efecivy dae of h e and Regultons ma e sued a Provona Acceditation.Choose the correct satment.I The Povisonal Acrto w b v fo p not eceedin year nlss

eai dw, eve o se y e BA. The ovional Accrediton may e se Dny ce an d 1newabe.

II The ranso provson shal aso y > retrning teachers who have not beeneacing r the ls yeas

A onyB. and I ony

II n I ony I I, d

n case o an initial uic oerng (IP) seL:rtie y comany the nte nancasatements to ccompany he Regisaton Staement (SE Fo 1-1 as amended) sale audte y n etea adito accredted y he

A Board o Aconay BOAB rosiona Reglaion ommission R BOAD BOA/RC and SC Securities a'd xchange ommission

he CA airman an e wo commsons shal e appointed by the presiden ohe hlippnes with cosent o he ommisson Apponments fr a term ofA. years ye B. 6 yeas 9 ye

] an inita publ ing o seuri n ommnation om e indendentaccontan t an nderier aot procedes he acounant pormed on the

unaudite nancia taemen and sed accomanying a cliens egsraion

satemen Comfo letter

40 Rfers to a company' maintainng a steady at.; of earnn growth overa seres of yers,theeby povidng no reason for he inancal arkes mute unexpeed isk in thecomany or n expee stok rces. Incoe .Soothig

41. Al he omponens wose fancil' inom2ion is cded in 'the group fancial staemens. Grup

Finaca tatements th at include the nanca rmation o more than one componnt.

It ao efe to ombned nanial aemt aggregaing the nancial inrman

eared by cmponets hat have noarnt are uner ommoncontrl.

GroupFnancialSatmens

-- END -

.. ! t:

t

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31/31

MY

PREWKAUDITNGHEY7SOl

2 [2. D 41 . 6 1 22. B : ' 6 A. 23. D 43 6. A 24 A 6. B D25. c

6 . D

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8 D 8 4 68. j 2 . 69 c

A 0 A A . A 1. 71 A2 2 c - A

A D 7 c D 34. [ ) 7 c ( 5. \ 6 c 6 A 6 6 7 c 7 7 ) 77 A . = 7 A 9 :) . B A 6 ! B

1.

RE WEEK UTIN THEOY 5

1 1 61 A 1 . A

c c Z B 6 A c c 6 A A 6 c

. c c 6 .

B6 c 6 6 A 66.

7 c 7 A 67 B . . B 6 c

9. A c 6 10. D B 7 A

11 c 1 B B

12" B c A 7

3. D c 53. 9 7

B B c 7 .

B B c B6 A 6 A 6. c 76 c

c 7 77 B A c c c. c A 6

preweek auditing theory 2014

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