1.

A financial reporting framework designed to meet the common financial information needs of a wide range of
users.
A. Fair presentation framework
B. General-purpose framework
C. Philippine Standards on Auditing
D. Financial reporting rules and regulations

2. The auditor's report shall have a title that clearly indicates

A. the name of the client audited.
B. when the audit was completed.
C. that it is the report of an independent auditor.
D. the period covered by the financial statements.

3. The expression "financial statements, taken as a whole" applies

A. only to a complete set of financial statements.
B. equally to each item in each financial statement.
C. equally to each material item in each financial statement.
D. equally to a complete set of financial statements and to an individual financial statement.

4. The phrase used to express the auditor's opinion is

A. "present fairly, in all material respects"
B. "provide reasonable but not absolute assurance"
C. "absence of material and pervasive misstatements in the financial statements"
D. AII of these choices are acceptable phrases to express the auditor's opinion.

5. The opinion expressed by the auditor when the auditor concludes that the financial statements are prepared, in
al lmaterial respects, in accordance with the applicable financial reporting framework.
A. Modified opinion C. Unmodified opinion
B. Standardized statement D. Unqualified explanation

6. An auditor's report should be dated no earlier than the date

A. the report is delivered to the entity audited.
B. of the balance sheet for the latest period reported on.
C. a letter of audit inquiry is received from the entity's attorney of record.
D. the auditor has obtained sufficient, appropriate audit evidence on which to base the opinion.

7. The auditor's address is also presented in the auditor's report. The address is normally the
A. principal place of business of the audit client.
B. exact location where the auditor's report was signed.
C. address of the majority shareholder of the audit client.
D. location in the jurisdiction where the auditor practices.

8. The partner or other person in the firm who is responsible for the group audit engagement and its performance,
and forthe auditor's report on the group financial statements that is issued on behalf of the firm.
A. Group engagement partner C. Lead partner
B. Joint engagement partner D. Managing partner

9. An auditor used the services of an expert during the audit of a client's financial statements. When issuing
anunmodified auditor's report, the auditor should:
A. mention the expert and justify the use of the expert's services.
B. not mention the expert as this might mislead financial statement users.
C. not mention the expert in the opinion and instead disclose the expert in the notes.
D. mention the expert in both the auditor's report and the notes to the financial statements.

10. In which of the following situations would the auditor appropriately issue a standard unqualified report with no
emphasis of a matter paragraph concerning consistency?
A. A change in the percentage used to calculate the provision for warranty expense.
B. Correction of a mistake in the application of a generally accepted accounting principle.
C. A change from an accounting principle that is not generally accepted to one that is generally accepted.
D. A change in the method of accounting for specific subsidiaries that comprise the group of companies for
which consolidated statements are presented.