Part 3: Identification - 20%

1. The degree of assurance provided by an independent audit.2. An attitude expected of a CPA engaged in an audit.3. The concept that requires that the benefit expected must exceed the cost involved.4. Personal qualification of an external auditor that is considered as a matter of judgment.5. Irrelevant rule when applied to direct financial interest.6. Aspect of audit that requires objective gathering and evaluation of evidence.7. Aspect of audit that requires communication of opinion and findings.8. Standards that relate to the qualifications of independent auditors.9. Standards that relate to the quality of the audit performance.10. Criteria within which assertions of management are measured. 11. It is carried out by a contracted CPA who after adequate examination and investigation offers a

professional opinion as to whether the concern's financial statements present fairly the results of operation and the financial condition of the enterprise.

12. A comprehensive and constructive examination of the organization structure of a company, institution or branch of government of any component thereof, its plans and objectives, its means of operation and its use of human and physical facilities to reveal defects or irregularities and to indicate possible improvements is called _______________.

13. The criteria by which the quality of performance of auditing engagements are measured. These indicate levels of performance which must be attained for the completion of a satisfactory audit and these relate to the personal qualifications of the auditor and to the exercise of his judgment in performing the examination and in rendering his report.

14. Under this method of billing a client, the external auditors charges on the basis of time spent by principals, supervisors, seniors and juniors at predetermined rates agreed upon with the client.

15. It is a statement of opinion based upon convincing evidence by an independent, competent and authoritative person concerning the conformance, in material respects, of accounting information communicated by an entity with established criteria

16. It is a systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between these assertions and established criteria and communicating the results to interested users.

17. It is an independent appraisals function within an entity to examine and evaluate its activities as a service to the organization.

18. It is conducted to determine compliance with criteria, standards, or rules established by an authoritative body.

19. It refers to the development of a general strategy and a detailed approach for the expected nature, timing, and extent of the audit for an efficient and timely conducted audit.

20. It comprises the plan of the organization including the coordinate methods and measures adopted within the business to safeguard assets, ensure the reliability and accuracy of accounting records, promote operational efficiency and encourage adherence to prescribed managerial policies.

Part 4: Enumeration – 20%

1-4. Types of audit opinion.5-9 Major financial statement assertions made by management.10-13 Objectives of internal control14-15 Primary objectives of independent auditor in the study and evaluation of the client’s

existing internal control system.16. Secondary objective of independent auditor in the study and evaluation of the client’s

existing internal control system.17-18 Factors considered in billing clients.19-20 Examples of the elements of the Quality Control Standards for auditing firms.