BARBOSA, JAKE BRYAN M.

MULTIPLE CHOICE QUESTIONS (2 Points Each)

1. D
2. B
3. D
4. B
5. C
6. D
7. B
8. C
9. C
10. E
11. B
12. C
13. B
14. A
15. C
16. C
17. D
18. B
19. D
20. C
21. B
22. D
23. A
24. C
25. D

TRUE OR FALSE (2Points Each)

1. True
2. False
3. True
4. False
5. False
6. False
7. True
8. True
9. False
10. True
ENUMERATION (1 Point Each)
1. The Five (5) components of Internal Control
- Control environment
- Risk assessment process
- Control activities
- Information system and related business processes
- Monitoring of controls
2. The five (5) fundamental principles of a professional accountant
- Professional competence and due care
- Integrity
- Confidentiality
- Objectivity
- Professional behavior
ESSAY (5 points)

What for you is the relevance of internal control in minimizing the threat of material
misstatements with regard financial reporting as a professional accountant in business who
upholds his/her ethical values?

As a professional accountant upholding ethical values, these values can already be a way of
minimizing material misstatements to financial reporting. Internal control is the most essential
thing to have in an entity. It serves as the benchmark in doing all activities and transactions of
the entity. It also serves as the guiding light in order to enlighten me to do things in accordance
with the implementing rules and regulations of the entity. Furthermore, internal control designed
to provide reasonable assurance with respect to achieving objectives of the entity. Thus,
recording transactions in accordance with the Generally Accepted Accounting Principles is a
must in order to minimize the threat of material misstatements in financial reportorial
requirements.