1011. The auditor communicates the results of his or her work through the medium if the
A.Engagement letter
B.Audit report
C.Management letter
D.Financial statement

1012. Independent auditing can best be describe as a
A.Professional activity that measures and communicates financial accounting data
B.subset accounting
C.Professional activity that attest to the fair presentation of financial statement
D.Regulatory activity that prevents the issuance of improper financial information

1013. Which of the following statements is not a distinction between independent auditors and internal auditors?

A.Independent auditors represent third party users external to the auditee entity, whereas internal auditors report directly to management.
B.Although independent auditors strive for both validity and relevance of evidence, internal auditors are concerned almost exclusively with validity.
C.Internal auditors are employees of the auditee, whereas independent auditors are independent contractors.
D.The internal auditor’s span of coverage goes beyond financial auditing to encompass operational and performance auditing.

1014. Which of the following has the primary responsibility for the fairness of the representations made in the financial statements?
A.Client’s management
B.Audit Committee
C.Independent auditor
D.Board of Accountancy

1015. An audit of the financial statements of KIA Corporation is being conducted by an external auditor. The external auditor is expected to
A.express an opinion as to the fairness of KIA’s financial statements.
B.express an opinion as to the attractiveness of KIA for investment purposes.
C.certify the correctness of KIA’s Financial Statements.
D.examine all evidence supporting KIA’s financial statements.

1016. Which of the following statements about independent financial statements audit is correct?
A.The audit of financial statements relieves management of its responsibilities for the financial statement
B.An audit is designed to provide limited assurance that the financial statements taken as a whole are free from material misstatement
C.The procedures required to conduct an audit in accordance with PSAs should be determined by the client who engaged the services of the auditor.
D.The auditor’s opinion is not an assurance as to the future viability of the entity as well as the effectiveness and efficiency with which management has conducted the affairs of the entity.

1017. The reason an independent auditor gathers evidence is to
A.Form an opinion on the financial statements
B.Detect fraud
C.Evaluate management
D.Evaluate internal controls

1018. An attitude that includes a questioning mind and critical assessment of audit evidence is referred to as
A.Due professional care
B.Professional skepticism
C.Reasonable assurance
D.Supervision

1019. Jack has been retained as auditor of EVC Company. The function of Jack’s opinionon financial statements of EVC Company is to
A.Improve financial decisions of company management
B.Lend Credibility to management’s representation
C.Detect fraud and abuse in management operations
D.Serve requirements of BIR, SEC, or Central Bank

1020. Which of the following is not one of the limitations of an audit?
A.The use of testing
B.Limitations imposed by client
C.Human error
D.Nature of evidence that the auditor obtains

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