Drill No. 1: The Accounting Profession
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 pe
Drill No. 4: GAAS and Quality Controls
QUALITY CONTROL FOR AUDIT WORK
Audit Firm Level: The audit firm should implement quality control policies and procedures
designed to ensure that all audits are conducted in accordance with PSAs or rel
Drill 9: Internal Control
The auditor should obtain an understanding of the accounting and internal control systems sufficient
to plan the audit and develop an effective audit approach.
Accounting system means the series of tasks and recor
Drill 10: Audit Evidence & Audit Procedures
1. Which statement is incorrect regarding audit evidence?
a. Audit evidence is all the information used by the auditor in arriving at the conclusions on
which the audit opinion is based.
Drill No. 2: Code of Ethics
1. Which statement is incorrect regarding the Code of Ethics for Professional Accountants in the
a. Professional accountants refer to persons who are Certified Public Accountants (CPA)
and who hold
Drill No. 5: Overview of Auditing
1. Certain fundamental beliefs called "postulates" underlie auditing theory. Which of the
following is not a postulate of auditing?
a. No long-term conflict exists between the auditor and the management of
Drill 8: Risk Assessment
1. Which of the following is correct statement?
a. The auditor should use professional judgment to assess audit risk and to design audit
procedures to ensure it is eliminated.
b. The auditor is an insurer, and his
Drill No. 6: Pre-Engagement Activities
1. Prior to the acceptance of an audit engagement with a client who has terminated the services
of the predecessor auditor, the CPA should
a. Contact the predecessor auditor without advising the prosp
Drill 7: Audit Planning
1. The development of a general strategy and a detailed approach for the expected nature, timing,
and extent of audit refers to :
b. Audit procedures c. Directing d. Planning
2. The auditor should con
Drill No. 3: Professional and Legal Responsibilities
The Auditors Responsibility to Consider Fraud and Error in the Audit of FS
1. The primary responsibility for the prevention and detection of fraud and error rests with
a. The auditor.