Audit Risk and Materiality
An auditor compares 2002 revenues and expenses with those
the prior year and investigates all changes exceeding
10%. By this procedure the auditor would be most likely to
An increase in prope
MANAGEMENT ADVISORY SERVICES
CPA Review School of the Philippines
1. The following activities are typical in production management:
1. Warranty work
2. Labor and overhead incurred for rework of defective products found by an inspector
Details of Assessment
Term and Year
Week 2 to Week 7
Due Week 8
Details of Subject
FNS60210 Advanced Diploma in Accounting
CAPITAL BUDGETING DECISIONSPART I
1. Calculating the payback period for a capital project requires knowing
which of the following?
a. Useful life of the project.
b. The company's minimum required rate of return.
c. The project
Computation of net income using Single Entry Method
For Single Proprietorship and Partnership
Increase/Decrease in Net Assets:
Capital balance, end
Capital balance, beginning
SHORT-TERM DECISIONS AND ACCOUNTING INFORMATION
1. The salary or wage that you could be earning while you are taking this
a. an opportunity cost.
b. a sunk cost.
c. an incremental cost.
d. a joint cost.
2. The kind o
OPERATIONAL AND FINANCIAL BUDGETING
1. The starting point in preparing a comprehensive budget is
a. the sales forecast.
b. the cash budget.
c. the budgeted income statement.
d. the flexible expense budget.
2. Budgets are rel
ACTIVITY-BASED COSTING AND MANAGEMENT
1. Activity-based costing
a. requires the identification of cost drivers.
b. is used only in JIT operations.
c. applies only to discretionary fixed costs.
d. does not help to identify acti
Objective of Reporting Segment Information
The objective of this statement is to establish principles for reporting financial information by line of
business and by geographical area. This is to help users of the financial stateme
1. The principal advantage of the scatter-diagram method over the high-low
method of cost estimation is that the scatter-diagram method
a. includes costs outside the relevant range.
b. considers more than two poi
1. Which formula gives unit sales required to earn a target profit? (P =
selling price, V = variable cost per unit, F = total fixed costs, T =
a. F/(P - V)
b. (F + T)/P
c. (F + T)/(P - V)
d. (F +
DIVISIONAL PERFORMANCE MEASUREMENT
1. Both ROI and RI can be used for performance evaluation of
a. cost centers.
b. profit centers.
c. investment centers.
d. all of the above.
2. The best transfer price is usually
CAPITAL BUDGETING DECISIONSPART II
1. Which of the following groups of capital budgeting techniques uses the
time value of money?
a. Book rate of return, payback, and profitability index.
b. IRR, payback, and NPV.
c. IRR, NPV,
Bachelors of Science (B.Sc.)
Semester Scheme (From 2016-17)
Syllabus, Scheme of Instruction & Examination
PROCESS COSTING AND THE COST ACCOUNTING CYCLE
1. ABC Company made the following journal entry.
Work in Process Inventory
Direct Labor Rate Variance
From this entry we can tell that ABC uses
INTRODUCTION TO PRODUCT COSTING
1. The three major components of manufacturing cost are
a. materials, work in process, and finished goods.
b. materials, labor, and manufacturing overhead.
c. materials, labor, and finished goo
ACCOUNTING AND THE TIME VALUE OF
Definition of present value.
Understanding compound intere
STANDARD COSTING, VARIABLE COSTING, AND THROUGHPUT COSTING
1. Which of the following is NOT a type of absorption costing?
a. Direct costing.
b. Actual costing.
c. Normal costing.
d. None of the above.
2. Variable costing is
CONTROL AND EVALUATION OF COST CENTERS
1. The two general types of variable cost variances are the
a. rate variance and spending variance.
b. price variance and budget variance.
c. price variance and quantity variance.
PROPERTY, PLANT AND EQUIPMENT
Carrying amount is the amount at which an asset is recognized after deducting any accumulated
depreciation and accumulated impairment losses.
Cost is the amount of cash or cash equivalents paid or the fair
1. Goal congruence exists when
a. the goals of the company harmonize with each other.
b. the company's managers are pursuing their own goals effectively.
c. the company's managers are pursuing the goa
1. The controller of a company or other organization is
a. a staff manager.
b. an operating manager.
c. an accountant, not a manager.
d. a natural manager.
2. Which item is NOT an IMA Standard for Ethical Conduc
Presentation of Financial Statements (PAS 1)
The objective of PAS 1 is to prescribe the basis for presentation of general purpose financial
statements, to ensure comparability both with the entity's financial statements of previous
Statistical Sampling for Substantive Testing
In applying variables sampling, an auditor attempts to
Estimate a qualitative characteristic of interest.
Determine various rates of occurrence for specified
CPA Review School of the Philippines
1. How did the framework of Philippines Standards on Auditing conceptually describe an
A. It refers to the auditors satisfaction as to the reliability of an assertion being made by one
Assessment of Control Risk
Which of the following is ordinarily considered a test of
internal control procedures?
Send confirmation letters to banks.
Count and list cash on hand.
Examine signatures on checks.
Internal Control and Computer Based Information
In the weekly computer run to prepare payroll checks, a
check was printed for an employee who had been
terminated the previous week. Which of the
controls, if pro
Audit Evidence and Audit Programs
The permanent file section of the working papers that is
kept for each audit client most likely contains
Review notes pertaining to questions and comments
regarding the audit work performed.
Defining Professional Responsibility:
Quality Standards and Ethics
Which of the following did not result at least partially due
to the alleged audit failures of the 1980s and 1990s?
The Treadway Report.
An SAS further defin
The basic concept of internal control which recognizes that
the cost of internal control should not exceed the benefits
expected to be derived is known as
Management by exception.