QUIZ Flashcards
1
Q
- Which of the following statements is correct?
A. The understanding with the client may limit the practitioner’s effort with regards to gathering relevant data.
B. The performance of consulting services for an attest client does not in itself impair independence.
C. In a consulting service, the client develops the findings, conclusions and recommendations presented.
D. Implementation services involve putting into operation a plan or recommendation
the practitioner has accepted.
A
B. The performance of consulting services for an attest client does not in itself impair independence.
2
Q
- As a consultant, the MAS practitioner should
A. Not take responsibility for making decisions and policy judgements.
B. Encourage dependence of client on the consultant’s staff so as to pinpoint clear responsibility in implementing systems.
C. Exercise administrative control over the client’s staff to avoid unnecessary delays in implementation
D. Conduct his engagement as if he is a member of the client’s organization.
A
A. Not take responsibility for making decisions and policy judgements.
3
Q
- Management services cover all of the following except A. Organizational development
B. System design, development and implementation
C. Audit, tax and legal services
D. Project feasibility study and planning
A
C. Audit, tax and legal services
4
Q
- Which of the following statements is false?
A. In management audit, a team with a mix of members who are accountants and non-accountants will provide a desirable combination of specialists and will offer a cross fertilization of ideas from different business fields.
B. Because the CPA must be independent, he must not allow the client to participate in any phase of the engagement.
C. Although MAS extend beyond the traditional accounting services, MS practitioners are still bound by the rules of professional ethics in the practice of accounting in general.
D. None of these.
A
B. Because the CPA must be independent, he must not allow the client to participate in any phase of the engagement
5
Q
- Which of the following statements is not acceptable?
A. The practitioner offers and provides consulting services to two major competing clients.
B. The practitioner provides consulting services to an existing audit client.
C. The practitioner shares with new client substantial information regarding another client belonging to the same industry.
D. The CPA does not extend his service beyond the presentation of recommendation or giving of advice.
A
C. The practitioner shares with new client substantial information regarding another client belonging to the same industry.
6
Q
- Which of the following statements is(are) false ?
Statement 1- All of the provisions of the Code of Professional Ethics for CPAs in public accounting must be observed without exception by those in MAS
Statement 2 - MS are confined only to such areas as financial accounting, auditing and tax services
A. Statement 1
B. Statement 2
C. Both statements 1 and 2
D. Neither statement 1 nor 2
A
C. Both statements 1 and 2
7
Q
- Which of the following does not relate to MAS ?
A. Design/installation of accounting system
B. Financial analysis for project feasibility studies
C. Cost analysis for major investment decisions.
D. Expressing independent expert opinion on the client’s financial statements.
A
D. Expressing independent expert opinion on the client’s financial statements.
8
Q
- In performing MAS engagements, the consultant should not take any position that might
A. Result in new organizational policies and procedures.
B. Constitute advice and assistance.
C. Impair objectivity.
D. Provide technical assistance in implementation.
A
C. Impair objectivity.
9
Q
- Which of the following statements is FALSE?
A. It is necessary that in performing MAS, a practitioner must act with integrity and objectivity and be independent in mental attitude.
B. A person who wants to become a consultant, must first pass the government board examinations given for that purpose.
C. Competence can be acquired by formal college education, experience in traditional services and actual performance of MAS.
D. The consultant’s competence places him in logical position to perform MAS for a certain client.
A
B. A person who wants to become a consultant, must first pass the government board examinations given for that purpose.
10
Q
- Which of the following is true about due professional care?
A. Involves diligence and appropriate attention in carrying out the assignment.
B. Does not require that all work be done within the provisions of the Code of Professional Ethics and other Professional standards.
C. Requires that in each technical area, the practitioner should perform the engagement with utmost professional quality.
D. Is acquired and maintained through a combination of education and experience.
A
A. Involves diligence and appropriate attention in carrying out the assignment.
11
Q
- The concept of due professional care includes
A. Consulting process skills
B. Technical skills
C. Interpersonal skills
D. Professional skills
A
All of the answers
12
Q
- These include personal attributes, that make the individual amiable among people and effective in accomplishing desirable objectives through people.
A. Consulting process skills
B. Technical skills
C. Interpersonal skills
D. Professional skills
A
C. Interpersonal skills
13
Q
- These are members of the organization who will be affected by the intervention of the consultant but the consultant is not aware that the proposed project will have an impact on them
A. Ultimate clients
B. Unwilling clients
C. Primary clients
D. Indirect clients
A
D. Indirect clients
14
Q
- These are groups of clients that the consultant can provide MAS which includes organizations such as hospitals, research institutions, and charitable institutions.
A. Professional associations
B. Governmental agencies and instrumentalities
C. Privately owned firms
D. Not for profit organizations
A
D. Not for profit organizations
15
Q
- Which of the following statements is false ?
A. Competence in MAS can be acquired by formal college education, experience in traditional services and actual performance of MAS.
B. Engagements must be performed by practitioners having competence in the analytical approach and process.
C. It is necessary that in performing MAS, a practitioner must act with integrity and objectivity and be independent in mental attitude.
D. CPAs are expected to be experts in all areas of MAS.
A
D. CPAs are expected to be experts in all areas of MAS.
16
Q
- Which of the following is not an analytical approach in MAS engagement?
A. Ascertaining the pertinent facts and circumstances.
B. Defining the problem or opportunity for improvement.
C. Presenting findings and recommendations.
D. Counseling management in planning, operating and controlling functions
A
D. Counseling management in planning, operating and controlling functions
17
Q
- An audit independence issue might be raised by the auditor’s participation in MAS engagements. Which of the following statements is most consistent with the profession’s attitude towards this issue?
A. The auditor who is asked to review management decisions is also competent to make these decisions and can do so without the loss of independence.
B. The auditor should not make the management decisions for an audit client.
C. The decision as to loss of independence must be made based upon the facts of the particular case. D. Information obtained as a result of MAS engagement is confidential to that of specific engagement and should not influence the performance of the attest
function
A
A. The auditor who is asked to review management decisions is also competent to make these decisions and can do so without the loss of independence.
18
Q
- Which of the following is not an area in MAS Practice ?
B. Reviewing and suggesting improvernants sl poldies, procadures, systema.
A. Conducting special studies methods and the like.
C. Marketing and public relations work.
D. Introducing new ideas, concepts and methods.
A
C. Marketing and public relations work.
19
Q
- S1: Competence in the professional work involves to ably to accept espanailur to the client successful completion of the engagerent.
S2: Competence may be supinten ed by encarer and by consultation with olhere.
A. True, True
B. True, False
C. False, True
D. False, False
A
A. True, True
20
Q
- S1: Problem definition, identification of objecives, and benefits to be derived should not be considered in structuring the engagements.
S2: The engagement objectives reflect the results expected to be derived.
A. True, True
B. True, False
C. False, True
D. False, False
A
B. True, False
21
Q
- S1: Two people have rapport when they communicate with ease and work together effectively. S2: Communication of ideas does not necessary need backed up with information
A. True, True
B. True, False
C. False, True
D. False, False
A
B. True, False
22
Q
- S1: Consultants need selling strategy.
S2: If an individual is overload, for a moment, it’s alright to try to give a little bit of assignment to him/her.
A. True, True
B. True, False
C. False, True
D. False, False
A
B. True, False
23
Q
- S1: CPAs in performing management services may be in the practice of management consulting. cindependent
S2; A practitioner may undertake only those engagements in which he can maintain an dependent mental attitude.
A. True, True
B. True, False
C. False, True
D. False, False
A
A. True, True
24
Q
- The following statements relate io MAS practice standards
I. A practitioner is to notify the client of any reservations he has regarding anticipated benefits
II. During the engagement, should there be significant changes between the cosi and anticipated benefits, the client should be informed.
III. Throughout the engagement, there ought to be a systematic critical review of of accomplishments and work should be done within the framework of the Code of Ethics and other professional standards
IV. Before the engagement. the practioner must make arrangements with, and inform the client on significant matters related to the engagement.
Which of the above statements pertain(s) to the MAS practice standard on Client benefit?
A. I & II
B. I, III & IV
C. I only
D. None of these
A
A. I & II
25
Q
- Competence in MAS is acquired by A. Education
B. Auditing and other experience.
C. Actual performance of MAS.
D. All of these
A
D. All of these
26
Q
- Indicate which of the following statements is(are) true.
Statement 1- A CPA firm’s primary purpose for performing MAS is to enable the staff members to acquire the necessary continuing education in all areas of business.
Statement 2- MAS consultation, unlike MAS engagement, generally involves advice in which the analytical process is applied.
A. True, True
B. True, False
C. False, True
D. False, False
A
D. False, False
27
Q
- Which of the following statements is not correct?
A. An MAS practitioner need to be concerned with independence in his clients and the overriding consideration for the engagement is competence.
B. MAS may involve making decisions for the client.
C. To maintain his independence, the consultant limits his services to that of recommending and designing an accounting system but leave the actual implementation and installation to the client.
D. Documentation is essential in an MAS engagement as it is in an audit engagement.
A
B. MAS may involve making decisions for the client.
28
Q
- One of the foldwing is nol a ground rid that the consulant should observe in
A. Documentation is essential an enksie a cleathen as its in an audrenageston providing support for internal arguments in a client
B. Provide the client manager information and insights that will strengthen his position against his adversaries in the organization.
C. Be sensitive to who is supper ing alitaten postions in the organia posit against his adversaries in the organization.
D. Find and explore option porting titterent asterent postions in a postlive way.
A
B. Provide the client manager information and insights that will strengthen his position against his adversaries in the organization.
29
Q
- As a consultant, the CPA practitioner should
A. Find and explore options titi her stouncile different positions in a positive way.
B. Conduct his engagernent las ir he is a member of the client’s organ airpo
C. Encourage dependence’ al the elien, roeminer consultant’s stait to pinpoint dlear responsibility in implementing system
D. None of the choices
A
A. Find and explore options titi her stouncile different positions in a positive way.
30
Q
- Management services of CPAs cover all the following, except
A. None of the choices
B. Project feasibility studies
C. System design development and implementation D. Organizational development and planning
A
A. None of the choices
31
Q
- Competence in MAS engagement is derived from the following, except A. Experience and specialized training.
B. Technical and supervisory skills.
C. Research capability.
D. Frequent communication with the client.
A
D. Frequent communication with the client.
32
Q
- Usual services maybe offered readily by the practitioner based on his basic training and background.
A. True
B. False
A
A. True
33
Q
- Which of the following statements is true?
A. In MAS engagements, the independent CPA renders technical advice.
B. A CPA in MAS engagement, may take position that would impair his independence if the client is not his audit client at the same time.
C. Strict adherence to GAAP in MAS is required..
D. A non CPA is prohibited under the revised accountancy law to engage in professional MAS practice.
A
A. In MAS engagements, the independent CPA renders technical advice.
34
Q
- The ability to identify and define client needs, to utilize the analytical approach and process, to apply knowledge of the technical subject matter under consideration, to communicate recommendations effectively and to assist in implementing the recommendations. It is acquired and maintained through a combination of education and experience.
A. Due care
B. Professionalism
C. Competence
D. Independence
A
C. Competence
35
Q
- A CRA’s scope of management services is broad and covers al the following, except A. Re-engineering engagements
B. Computerization engagements
C. Change in management engagements
D. None of the choices
A
D. None of the choices
36
Q
- The following characterize management advisory services, except
A. Relate to specific problems where expert help is a must
B. Involves decisions for the future
C. Broader in scope and varied in nature
D. None of the choices
A
D. None of the choices
37
Q
- Which of the following is not a characteristic of management services?
A. MAS pinpoints actions to be taken, the benefits of which will be received in the
B. In MAS engagements, the nature of work involved requires a lesser need for junior assistance
C. A wider variety of assignments are encountered in MAS that in audit
D. None of the choices
A
D. None of the choices
38
Q
- Which of the following is not a characteristic of management services?
A. Design and/or installation of accounting system
B. Financial analysis for project feasibility studies
C. Cost analysis of major investment decisions
D. None of the choices
A
D. None of the choices
39
Q
- An MS client asked for internal control evaluation. During evaluation, the practitioner suggests that certain changes are necessary in handling some accounts. The client agrees. However, the client requests that his former consultant supervise the installation. The practitioner knows that such former consultant lacks sufficient experience to provide the necessary technical direction and supervision. In this case, the practitioner should
A. Encourage the former consultant to attend a seminar/workshop to learn the basics of engagement supervision.
B. Prevent the former consultant to supervise the installation.
C. Tell the client everything he knows about the former consultant so he could be prevented from supervising the installation.
D. Decline the engagement if the client insists that the former consultant supervise the installation and the necessary technical competence would not be provided even through other means.
A
D. Decline the engagement if the client insists that the former consultant supervise the installation and the necessary technical competence would not be provided even through other means.
