1. What are the two (2) most important qualities for an operational auditor?

A. Personality and appearance

B. Independence and competence
C. Competence and technical training
D. Academic background and sufficient experience

2. Which of the following types of audits are MOST similar?

A. Operational audits and compliance audits.
B. Internal audits and independent financial statement audits.
C. Independent financial statement audits and operational audits.
D. Compliance audits and independent financial statement audits.

The professional practice of accountancy

3. According to the IAASB Glossary of Terms, this refers to a professional accountant in public practice.
A. Auditor C. Professional
B. Practitioner D. Public accountant

4. The person or persons who in a direct reporting engagement, is responsible for the subject matter; or in an
assertion-based engagement, is responsible for the subject matter information (the assertion), and may be
responsible for thesubject matter.
A. Audit committee C. Intended users
B. General public D. Responsible party

5. These are the benchmarks used to evaluate or measure the subject matter including, where relevant,
benchmarks forpresentation and disclosure.
A. Assertions C. Engagement process
B. Criteria D. GAAP

6. An auditor should NOT render a report on

A. client internal control C. quarterly financial information
B. management performance D. the achievability of forecasts

7. Which of the following BEST describes risk assessment services?

a. An engagement which identifies a set of risks that affect the client organization. It involves the study of the
link between risks and the organization's vision, mission, objectives and strategies and the development of
new and relevant measures.
b. An engagement which provides assurance about whether financial and non-financial information being
reported from the entity's performance measurement system is reliable.
c. An engagement which involves the evaluation of the quality of health care, medical services and looksinto
the health care delivery system.
d. None of the answers

8. Which of the following matters is NOT included under "regulatory environment"?

A. Accounting principles and industry specific practices.
B. General level of economic activity (for example, recession, growth).
C. Legislation and regulation that significantly affect the entity's operations.
D. Government policies currently affecting the conduct of the entity's business.

Professional responsibilities
9. A CPA who is engaged to prepare an income tax return has a duty to prepare it in such a manner that the tax is
A. the legal minimum
B. not subject to change upon audit
C. supported by the client's audited financial statements
D. computed in conformity with generally accepted accounting principles

Quality Standards
10. This is a review that provides an objective evaluation of the significant judgments made bythe engagement
team and the conclusions reached in formulating the report.
A. Peer review.
B. System of quality control.
C. Engagement quality control review.
D. Engagement judgment review procedures.