QUIZ Flashcards
- 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.
B. The performance of consulting services for an attest client does not in itself impair independence.
- 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. Not take responsibility for making decisions and policy judgements.
- 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
C. Audit, tax and legal services
- 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.
B. Because the CPA must be independent, he must not allow the client to participate in any phase of the engagement
- 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.
C. The practitioner shares with new client substantial information regarding another client belonging to the same industry.
- 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
C. Both statements 1 and 2
- 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.
D. Expressing independent expert opinion on the client’s financial statements.
- 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.
C. Impair objectivity.
- 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.
B. A person who wants to become a consultant, must first pass the government board examinations given for that purpose.
- 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. Involves diligence and appropriate attention in carrying out the assignment.
- The concept of due professional care includes
A. Consulting process skills
B. Technical skills
C. Interpersonal skills
D. Professional skills
All of the answers
- 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
C. Interpersonal skills
- 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
D. Indirect clients
- 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
D. Not for profit organizations
- 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.
D. CPAs are expected to be experts in all areas of MAS.
- 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
D. Counseling management in planning, operating and controlling functions
- 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. 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.
- 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.
C. Marketing and public relations work.
- 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. True, True
- 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
B. True, False
- 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
B. True, False
- 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
B. True, False
- 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. True, True
- 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. I & II