Applied Auditing (ACC512A)

1st Semester SY 2019-2020

Joseph J. Mendoza II, CPA

Assessments
 Assessment 1 (11 July 2019) Joseph J. Mendoza II, CPA

QUESTIONS
(1-5). Define Auditing (5points)
(6-7) What are the two (2) overall objectives of the independent auditor as per PAS 200
(8) This refers to the audit procedures deemed necessary in the circumstances to achieve the objective of the audit
(9) The attitude that the auditor makes a critical assessment, with questioning mind, of the validity of the audit evidence obtained and is alert to audit evidence that contradicts or bring into
question the reliability of documents and responses to inquiries and other information obtained from management and those charged with governance
(10) What is the acceptable level of audit evidence to the auditor?
True or False
(11) True or False: Reasonable assurance is obtained when auditor has reduced the audit risk to an acceptably low level
(12) True or False: Auditor reduces audit risk by designing and performing audit procedures to obtain sufficient appropriate audit evidence to be able to draw absolute conclusions on which
to base an audit opinion
(13) True or False: It is the auditor's responsibility that the preparation and presentation of the Financial Statement is in accordance with the applicable Financial Reporting Framework, with
oversight from those charged with governance.
(14) True or False: Audit does not relieve management and those charged with governance of their responsibility.
(15) True or False: Auditor eliminates audit risk by designing and performing audit procedures to obtain sufficient appropriate audit evidence
Matching type: Risks; match the definition on the left with the correct terminology on the right
(16) Risk that the auditor may give an unqualified opinion on materially misstated financial statements (A) Business Risk
(17) Risk that affects the operations and potential outcomes of organizational activities (B) Financial Reporting Risk
(18) Risk relating to recording of transactions and the presentation of the financial data in an organization’s Financial Statements (C ) Engagement Risk
(19) Risk of auditor being associated with a particular client including loss of reputation, inability of the client to pay the auditor or financial loss because (D) Inherent Risk
management is not honest and inhibits the audit process
(20) The initial susceptibility of a transaction or accounting adjustment to be recorded in error, or for the transaction not to be recorded in the absence of (E) Audit Risk
internal control