ACP 314 – Auditing and Assurance Principles

Examination No. 1
Topic: Intro to Assurance Services, Auditing, and other CPA services

Short-answer Questions/Essay. (at least 500 words for each question/item, excluding articles, linking
verbs and conjunctions). 10 points each.

Reminders: Do not copy what is written in the module or in the internet. You can cite PSAs for your
answers, but also provide your own idea.

1. Discuss each area of practice of the accountancy profession in the Philippines.

2. Explain the role of each regulatory bodies and professional organizations that influence the
practice of accountancy profession in the Philippines.
3. Compare and contrast reasonable-assurance service, limited assurance services, and no
assurance services offered by CPAs.
4. Explain the concept of materiality, reasonable assurance, and professional skepticism in the
conduct of audit services by CPAs.
5. Discuss the inherent limitations of an audit and its implications in the conduct of audit by CPAs.
6. Compare and contrast the objectives of the following services:
a. Independent financial statement audit
b. Government or State audit
c. Internal audit