C through loss from litigation adverse publicity or

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C. Through loss from litigation, adverse publicity, or other events arising in connection with a subject matter reported on. D. Of expressing an inappropriate conclusion when the subject matter information is either materially misstated or not materially misstated. 8. Reducing assurance engagement risk to zero is very rarely attainable or cost beneficial as a result of the following factors, except A. The use of selective testing. B. The fact that much of the evidence available to the practitioner is persuasive rather than conclusive. C. The practitioner may not have the required assurance knowledge and skills to gather and evaluate evidence. D. The use of judgment in gathering and evaluating evidence and forming conclusions based on that evidence. 9. The Philippine Framework for Assurance Engagements A. Contains basic principles, essential procedures, and related guidance for the performance of assurance engagements. B. Defines and describes the elements and objectives of an assurance engagement, and identifies engagements to which PSAs, PSREs, and PSAEs apply. C. Provides a frame of reference for CPAs in public practice when performing audits, reviews, and compilations of historical financial information. D. Establishes standards and provides procedural requirements for the performance of assurance engagements. AUDITING AND RELATED SERVICES 10. When performing a compilation engagement, the accountant is required to A. Assess internal controls. B. Make inquiries of management to assess the reliability and completeness of the information provided. C. Verify matters and explanations. D. Obtain a general knowledge of the business and operations of the entity. 11. Inquiries and analytical procedures ordinarily form the basis for which type of engagement? A. Agreed-upon procedures. B. Audit. C. Examination. D. Review. 12. Independence is not a requirement for which of the following engagements? A. Compilation and Review B. Compilation, Review and Agreed-year Procedures C. Compilation and Agreed-upon Procedures D. Review and Agreed-upon Procedures
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Page 3 13. The auditor is required to maintain professional skepticism throughout the audit. Which of the following statements concerning professional skepticism is false? A. A belief that management and those charged with governance are honest and have integrity relieves the auditor of the need to maintain professional skepticism. B. Maintaining professional skepticism throughout the audit reduces the risk of using inappropriate assumptions in determining the nature, timing, and extent of the audit procedures and evaluating the results thereof. C. Professional skepticism is necessary to the critical assessment of audit evidence. D. Professional skepticism is an attitude that includes questioning contradictory audit evidence obtained.
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  • Summer '18
  • Jane
  • Financial audit

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