Item 21 of 351 Point

The Board of Accountancy shall submit to the PRC the ratings obtained by each candidate
within ____ days after the examination, unless extended for just cause.

Select the correct response:

● 10
● 2
● 5
● 3
●

Item 22 of 351 Point

When threats to independence that are other than those clearly insignificant are identified, the
professional accountant should

Select the correct response:

● assign more experienced staff to the assurance engagement.

● downgrade the nature of engagement to one that does not require independence.
● apply appropriate safeguards to eliminate threats to independence or to reduce them to
an acceptable level.
● continue the assurance engagement but with heightened level of professional
skepticism.
●

Item 23 of 351 Point

Independence of an auditor in relation to the enterprise may be impaired under the following
cases, except

Select the correct response:

● Having a direct or material indirect financial interest in the enterprise.

● Engaged to render management advisory services to the enterprise.
● Connection with the enterprise as a promoter, underwriter, voting trustee, director, officer
or employee.
● Having a loan to or from the enterprise or any officer, director or principal stockholder
thereof with certain exceptions.

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Item 24 of 351 Point

The following statements relate to a provision of taxation, internal audit or IT Systems services
to audit clients. Which is false?

Select the correct response:

● The provision of services by a firm or network firm to an audit client that involve the
design and implementation of financial information technology systems that are used to
generate information forming part of a client’s financial statements may create a
self-review threat.
● The provision of services in connection with the assessment, design, and
implementation of internal accounting controls and risk management controls does not
create a threat to independence provided that firm or network firm personnel do not
perform management functions.
● Preparing calculations of current and deferred tax liabilities (or assets) for an audit client
for the purpose of preparing accounting entries that will be subsequently audited by the
firm creates a self-interest threat.
● A self-review threat may be created when a firm, or network firm, provides internal audit
services to an audit client.
●

Item 25 of 351 Point

Which of the following circumstances would least likely create familiarity threat?

Select the correct response:

● a former partner of the firm being a director, officer of the assurance client or an
employee in a position to exert direct and significant influence over the subject matter of
the assurance engagement.
● a member of the assurance team having an immediate family member or close family
member who, as an employee of the assurance client, is in a position to exert direct and
significant influence over the subject matter of the assurance engagement.
● a former director or officer of the assurance client joins the assurance team.
● a member of the assurance team having an immediate family member or close family
member who is a director or officer of the assurance team.
●
●

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