Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

AUDI > Fundamentals of Auditing and Assurance Services > Flashcards

Fundamentals of Auditing and Assurance Services Flashcards

1
Q

Who promulgated the auditing standards in the Philippines

A

Auditing and Assurance Standards Council (AASC)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Who created the AASC

A

Professional Regulation Commissions upon the recommendation of the Board of Accountancy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

3 Frameworks in the practice of the accountancy profession

A
  1. Professional
  2. Regulatory
  3. Legal
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

4 Sectors in the Accountancy Profession

A
  1. Public Practice
  2. Commerce and Industry
  3. Education or Academe
  4. Government Service
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

AASC’s Engagement Standards (Professional Framework)

A
  1. PSA
  2. PSRE
  3. PSAE
  4. PSRS
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Fundamental Ethical Principles

A

POPIC
1. Professional Competence and Due Care
2. Objectivity
3. Professional Behaviour
4. Integrity
5. Confidentiality

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Essential Ethical Principle

A

Independence (in fact and in mind)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Legal Framework

A
  1. RA 9298 and IRR
  2. RA 10912 CPD Law
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Two types of Professional Engagements

A
  1. Assurance Engagement
  2. Non-assurance Engagement
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is the content of the engagement standards

A
  1. Basic Principles
  2. Essential Procedures
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What are “practice statements” for

A

Interpretative Guidance and Practice Assistance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is an Assurance Engagement?

A

Engagement which a practitioner expresses a conclusion designed to enhance the degree of confidence of the intended users other than the responsible party about the outcome of the evaluation of a subject matter against criteria

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Regulatory Framework

A
  1. 2021 Revised Philippine Code of Ethics
  2. Rules and Regulations on Advertising and Promotion in the Philippines
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Objectives of Assurance Engagement

A
  1. Evaluate a subject matter against identified suitable criteria
  2. Express about the subject matter
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Classification of Assurance Engagements

(According to Level of Assurance)

A
  1. Reasonable Assurance Engagement
  2. Limited Assurance Engagement
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Classification of Assurance Engagements

(According to Structure)

A
  1. Assertion-based Engagement (Attestation)
  2. Direct Reporting Engagement
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Objective of Reasonable Assurance Engagement

A

Reduction in assurance engagement risk: **Acceptably Low Level **

Form of expression: Positive Form

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Objective of Limited Assurance Engagement

A

Reduction in assurance engagement risk: **Level that is Acceptable **

Form of expression: Negative Form

19
Q

Assertion-based Engagement

A

**Responsible Party: **performs the evaluation of subject matter in an assertion based engagement

Form of assertion by RP: made available to intended users

20
Q

Direct Reporting Engagement

A

**Practitioner: ** directly performs the evaluation of subject matter or obtains representation from RP
​
Form of assertion by RP: not available to intended users

21
Q

Examples of Assertion-based Engagements

A
  1. Independent Audit Engagement
  2. Review Engagement
22
Q

Procedures to obtain evidence in Review Engagements

A
  1. Inquiry
  2. Analytical Procedures
23
Q

Elements of an Assurance Engagement

A
  1. Three party relationship
  2. Appropriate subject matter
  3. Suitable criteria
  4. Sufficient and appropriate evidence
  5. Written Assurance Report
24
Q

Three-party relationship involves

A
  1. Practitioner
  2. Responsible Party
  3. Intended Users
25
What is an assertion
statement or claim made by management regarding the financial statements. These assertions provide a basis for the auditor to evaluate the accuracy and completeness of the financial information.
26
Characteristics of a Suitable Criteria
CR-RUN 1. Completeness 2. Relevance 3. Reliability 4. Understandability 5. Neutral
27
Sufficiency of evidence
Quantity of evidence
28
Appropriateness of evidence
Quality of evidence (relevance and reliability)
29
Factors to determine reliability of evidence
1. Independent sources outside the entity 2. Effective controls 3. Directly acquired (by practitioner) 4. Documentary form 5. Original documents
30
Limitations of Assurance Engagements
1. Selective testing/ Sampling risk 2. Inherent limitations of internal control 3. Nature of Evidence (persuasive rather conclusive) 4. Human limitations (use of judgment)
31
Engagements provided by Practitioners (Assurance Engagements)
1. Audit 2. Review 3. Other Assurance Services
32
Engagements provided by Practitioners (Non-Assurance Engagements)
1. Agreed-upon procedures 2. Compilation of financial or other information 3. Preparation of Tax returns and tax consulting 4. Management consulting and advisory services
33
Assurance Engagement Risk
risk that the practitioner expresses an inappropriate conclusion when the subject matter information is materially misstated
34
Risk that subject matter information is materially misstated
1. Inherent risk 2. Control risk
35
Inherent risk
The susceptibility of the subject matter information to a material misstatement, assuming there are no related controls
36
Control risk
risk that a material misstatement will not be prevented and corrected on a timely basis by related internal controls
37
Detection risk
risk that the practitioner will not detect a material misstatement that exists
38
2 types of Applicable Financial Reporting Framework
1. Fair Presentation Framework 2. Compliance Framework
39
Scope of Independent Audit (Audit Procedures)
1. Risk Assessment Procedures 2. Test of Controls 3. Substantive Tests (Substantive Analytical Procedures and Substantive Test of Details)
40
Phases in Risk Based Audit Process
I. Risk Assessment II. Risk Response III. Conclusion and Reporting
41
Organization of CPA firms
1. Sole Proprietorships 2. Partnerships Corporations are NOT allowed
42
Audit Fee methods
1. Per diem 2. Flat fee 3. Maximum fee 3. Retainer fee
43
Professional Organization
PICPA - ACPAPP - nACPAE - ACPACI - GACPA

AUDI (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions