Have an account?
Skip to Content
Build your own quiz
Suggestions for you
21 questions
Show Answers
See Preview
- 1. Multiple Choice
What is the correct order of how the new Code is structured?
I. Complying with the Code, Fundamental principles, and Conceptual Framework
II. Professional Accountants in Public Practice
III. International Independence Standards
IV. Professional Accountants in Business
V. Glossary
I, ii, iii, iv, v
I, iv, ii, iii, v
I, v, ii, iv, iii
I, ii, iv, iii (iv is not part of the code structure)
- 2. Multiple Choice
This is the distinguishing mark of the accountancy profession as noted in the 2018 Code of Ethics.
Acceptance of the responsibility to act in the public interest
Ability to sign audit reports of clients in various industries
Satisfaction of the needs of an individual client or employing organization
Competence and capability to execute and conform with the auditing and accounting standards
- 3. Multiple Choice
When applying the conceptual framework, the professional accountant shall:
Exercise professional judgment
Remain alert for new information and to changes in facts and circumstances
Use the reasonable and informed third party test
All of the above
- 4. Multiple Choice
This is the fundamental principle of ethics which is characterized as “to comply with relevant laws and regulations and avoid any conduct that the professional accountant knows or should know might discredit the profession.”
Integrity
Objectivity
Professional Behavior
Professional Competence and Due Care
- 5. Multiple Choice
Which of the following statements appropriately relates to independence as denoted by the Handbook?
Required for professional accountants in business
Linked to the principles of objectivity and integrity.
Relates to independence of mind but not of appearance
Exclusively applicable to audits and review engagements
- 6. Multiple Choice
In order to achieve the objectives of the accountancy profession, professional accountants have to observe a number of prerequisites or fundamental principles. The fundamental principles include the following, except:
Objectivity
Professional Competence and due Care
Confidentiality
Confidence
- 7. Multiple Choice
For assurance engagements provided to an audit client, the following should be independent of the client:
• The members of the assurance team (YES OR NO)
• The firm (YES OR NO)
• Network firms (YES OR NO)
YES, YES, YES
YES, YES, NO
YES, NO, NO
YES, NO, YES
- 8. Multiple Choice
Intimidation threat:
Is not a threat to independence.
Occurs when a member of the assurance team may be deterred from acting objectively and exercising professional skepticism by threats, actual or perceived, from the directors, officers or employees of an assurance client.
Occurs when, by virtue of a close relationship with an assurance client, its directors, officers or employees, a firm or a member of the assurance team becomes too sympathetic to the client’s interests.
Occurs when a firm, or a member of the assurance team, promotes, or may be perceived to promote, an assurance client’s position or opinion to the point that objectivity may, or may be perceived to be, compromised.
- 9. Multiple Choice
A level at which a professional accountant using the reasonable and informed third party test would likely conclude that the accountant complies with the fundamental principles.
Reasonable assurance
Confidence level
Assurance level
Acceptable level
- 10. Multiple Choice
A consideration by the professional accountant about whether the same conclusions would likely be reached by another entity.
Reasonable and informed third party test
Reverse and informed third party test
Swab test
Consultation
- 11. Multiple Choice
The avoidance of facts and circumstances that are so significant that a reasonable and informed third party would be likely to conclude that a firm’s or an audit or assurance team member’s , integrity, objectivity or professional skepticism has been compromised.
Independence of mind
Independence of appearance
Professional judgment
Professional skepticism
- 12. Multiple Choice
What is the period in which independence is required to be maintained?
From the start of the engagement fieldwork until the report is released
From the earliest date covered by the financial statements until period end of the entity
During both engagement period and period covered by the financial statements
After the engagement letter is signed until the engagement file is achieved.
- 13. Multiple Choice
Which of the following is least likely to create a threat to independence?
The fees generated by the assurance client represent a large proportion of the revenue of an individual partner.
The firm charges a contingent fee to an assurance client.
Accepting gifts or hospitality, the value of which is clearly insignificant, from an assurance client.
When litigation takes place, or appears likely, between the firm or a member of the assurance team and the assurance client.
- 14. Multiple Choice
When the safeguards available are insufficient to eliminate the threats to independence or to reduce them to an acceptable level, or when a firm chooses not to eliminate the activities or interest creating the threat, the only course of action available will be the:
Issuance of an adverse opinion
Issuance of a qualified opinion or disclaimer of opinion
Issuance of unqualified opinion with explanatory paragraph.
Refusal to perform, or withdrawal from, the assurance engagement.
- 15. Multiple Choice
When preparing or presenting information, a professional accountant shall perform the following except:
Prepare or present the information in accordance with a relevant reporting framework
Prepare or present the information in a manner that is intended neither to mislead nor to influence contractual or regulatory outcomes inappropriately
Exercise professional skepticism to represent the facts accurately and completely in all material aspects.
Not omit anything.
- 16. Multiple Choice
A self-interest threat to compliance with the principle of professional competence and due care might be created if a professional accountant has:
Limited time for performing or completing the relevant duties.
Completed unrestricted or otherwise adequate information for performing the duties.
Experience, training and/or education.
Resources for the performance of the duties.
- 17. Multiple Choice
If a professional accountant pays or receives a referral fee or receives a commission relating to a client, a self-interest threat to which principle is created?
Objectivity; Professional Competence and Due Care
Confidentiality; Integrity
Professional Behavior; Professional Competence and Due Care
Professional Competence and Due Care; Integrity
- 18. Multiple Choice
Prior to taking custody of client’s assets, a professional accountant in public practice shall:
Assume custody of client money or other assets unless not permitted to do so by law
Make inquiries about the source of the of the assets
Report to regulatory agencies the assets under custody
All of the above
- 19. Multiple Choice
The term professional accountant in public practice includes the following, except:
A sole proprietor providing professional services to a client.
Each partner or person occupying a position similar to that of a partner staff in a practice providing professional services to a client.
Professional accountants employed in the public sector having managerial responsibilities
A firm of professional accountants in public practice.
- 20. Multiple Choice
A professional accountant in business who is responsible for the financial reporting of the employing organization when an immediate or close family member employed by the organization makes decisions that affect the financial reporting of the organization may create:
Intimidation threat
Self-interest threat
Self-review threat
Familiarity Threat
- 21. Poll
Pera o Bayong?
Pera
Bayong
- Answer choicesTagsAnswer choicesTags