AT-5902_professional acctg practice

AT-5902_professional acctg practice - Page 1 of 7 CPA...

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Page 1 of 7 CPA REVIEW SCHOOL OF THE PHILIPPINES M a n i l a AUDITING THEORY Professional Accounting Practice Related PSA : Preface to PSA and Related Services 1. The following statements relate to the accounting profession: I. To merit public trust and confidence, the professional person must convince the public that he will place public service ahead of personal reward. II. A CPA certificate is evidence of basic competence in the discipline of accounting at the time the certificate is granted. III. A code of professional conduct is one of the most important distinguishing characteristics of a profession. State whether the foregoing statements are true or false. a. All of the statements are true. c. Only two of the statements are true. b. Only one of the statements is true. d. All of the statements are false. 2. Which of the following is not normally a service rendered by public accountants? a. Management consultation service c. Internal auditing b. Attest function d. Taxation 3. A CPA firm offers management advisory services to clients. Its primary purpose is to a. Furnish professional advice and assistance which will enable the client to improve operations. b. Keep the CPA firm competitive with other firms. c.Establish the firm as a consultant, thus ensuring its future expansion and growth. d. Permit the firm’s staff members to acquire expertise in other areas of practice. 4. The government agency tasked by law of implementing and enforcing the regulatory policies of the national government with respect to the regulation and licensing of the various professions and occupations under its jurisdiction is a. PRC b. BOA c. COA d. SEC 5. Which of the following mostly describes the function of ASPC? a. To monitor full compliance by auditors to PSAs. b. To promulgate auditing standards, practices and procedures that shall be generally accepted by the accounting profession in the Philippines. c.To assist the Board of Accountancy in conducting administrative proceedings on erring CPAs in audit practice. d. To undertake continuing research on both auditing and financial accounting in order to make them responsive to the needs of the public. 6. In the absence of pronouncements issued by the ASPC and the PICPA, published statements and guidelines issued by other authoritative bodies like AICPA, IAASB and AFA are the bases of determining generally accepted auditing standards (GAAS). What effect do these pronouncements provide in determining the GAAS? a. Authoritative b. Persuasive c. Parallel d. Alternative 7. Which statement is incorrect regarding the pronouncements of ASPC? a. The PSAs and Interpretations may also have application, as appropriate, to other related activities of auditors. b. P SAs contain basic principles and essential procedures (identified in bold type black lettering) together with related guidance in the form of explanatory and other material. c.
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This note was uploaded on 11/22/2010 for the course CAC BSA taught by Professor Kairus during the Spring '10 term at Korea University.

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AT-5902_professional acctg practice - Page 1 of 7 CPA...

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