Free Auditing and Assurance Training Fundamentals Questions and Answers

Question 1

In most cases, an auditor should notify the client if they think an understanding has not yet been reached.

Accepted Answer

Decline to accept or perform the audit

Answer

If an auditor believes that an understanding with the client has not been established, the auditor should ordinarily decline to accept or perform the audit engagement. Establishing an understanding with the client is a crucial step in the audit process, as it helps define the responsibilities and expectations of both the auditor and the client.

Question 2

Which statement of Philippine Auditing Practices Statements (PAPS) is true?

Accepted Answer

These statements are issued to provide practical assistance to auditors in implementing PSAs or to promote good practice.

Answer

The statement "These statements are issued to provide practical assistance to auditors in implementing PSAs or to promote good practice" is correct about Philippine Auditing Practices Statements (PAPS).

Question 3

Reviewing financial statements has the following goals:

Accepted Answer

State whether anything has come to the auditor’s attention that indicates that the financial statements are not presented fairly

Answer

The objective of a review of financial statements is to state whether anything has come to the auditor's attention that indicates that the financial statements are not presented fairly, in all material respects, in accordance with the applicable financial reporting framework.

Question 4

The most frequent reason for conducting an audit of historical financial statements is to check if the

Accepted Answer

None of these choices

Question 5

If an auditor has the following opinions, they are not required to follow a particular PSA requirement:

Accepted Answer

Any of the given three choices is correct

Auditing and Assurance Training Practice Test

Auditing and Assurance Training Practice Test

Free Auditing and Assurance Training Fundamentals Questions and Answers