No. 125 Brgy.

San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@gmail.com

AUDITING
iCARE Accountancy Review
st
1 Open Preboard Examination, Batch 3

INSTRUCTIONS: Choose the best answer among the given choices. Policies on academic
honesty are strictly enforced.

Auditing Theory

1. Which of the following is not a distinctive feature of a risk-based audit?

a. Identifying areas posing the significant risk of financial statement errors.
b. Collecting and evaluating evidence.
c. Analysis of internal control.
d. Concentrating audit resources in those areas presenting the highest risk of
financial statement errors.

2. The best description of the scope of internal auditing is that it encompasses

a. Primarily operational auditing.
b. Primarily financial auditing.
c. Both financial and operational auditing.
d. Primarily the safeguarding of assets and verifying the existence of such
assets.

3. Which one of the following is more difficult to evaluate objectively?

a. Presentation of financial statements in accordance with Philippine Financial
Reporting Standards.
b. Compliance with Bureau of Internal Revenue regulations.
c. Efficiency and effectiveness of operations.
d. All other choices are equally difficult.

4. When auditors apportion the preliminary judgment about materiality to account

balances, the materiality apportioned to any given material item is referred to as:
a. Overall materiality.
b. Allocated materiality.
c. Tolerable materiality.
d. Tolerable misstatement.

5. This is a type of misstatement where the auditor can determine the amount of
the misstatement in the account.
a. Potential
b. Theoretical
c. Uncorrected
d. Known

6. Which of the following statements is incorrect?

a. Inherent risk is inversely related to detection risk.
b. Inherent risk is inversely related to evidence.
c. Inherent risk is the susceptibility of the financial statements to material error,
assuming no internal controls.
d. Inherent risk is the auditor’s assessment of the likelihood that errors
exceeding a tolerable amount exist in a segment before considering the
effectiveness of internal controls.

1P a g e JABELLAR/ AJABINAL/AIBAY/RBERCASIO/JM AGLINAO

 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@gmail.com

7. Authorizations can be either general or specific. Which of the following is not an

example of a general authorization?
a. Automatic reorder points for raw materials inventory.
b. Credit limits for various classes of customers.
c. A sales manager’s authorization for a sales return.
d. A sales price list for merchandise.

8. Which of the following is not a likely procedure to support the operating

effectiveness of internal controls?
a. Inquiry of client personnel.
b. Observation of control-related activities.
c. Reperformance of client procedures.
d. Completing an internal control questionnaire.

9. For efficiency, tests of controls are frequently done at the same time as:
a. analytical procedures.
b. compliance tests.
c. tests of transactions.
d. tests of details of balances.

10. Which of the following is not a direct result of performing analytical procedures?
a. Identify areas of potential misstatements.
b. Identify specific errors in the accounts.
c. Reduce detailed audit tests.
d. Understand the client’s business.

11. In the audit of which of the following types of profit-oriented enterprises would
the auditor be most likely to place special emphasis on tests of controls for
proper classifications of payroll transactions?
a. A retail organization
b. A wholesale organization
c. A manufacturing organization
d. A service organization
12. As it relates to an audit, materiality is
a. not taken into consideration.
b. related only to the sufficiency of procedures performed.
c. based upon audit fees.
d. determined based upon the importance to a user of the financial
statements.
13. An auditor obtains knowledge about a new client's business and its industry in
order to
a. Make constructive suggestions concerning improvements to the client's
internal control structure
b. Develop an attitude of professional skepticism concerning management's
financial statement assertions
c. Evaluate whether the aggregation of known misstatements causes the
financial statements taken as a whole to be materially misstated
d. Understand the events and transactions that may have an effect on the
client's financial statements

14. Which of the following is not true regarding the performance of a walkthrough?

2P a g e JABELLAR/ AJABINAL/AIBAY/RBERCASIO/JM AGLINAO

 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@gmail.com

a. It is performed together for the purpose of identifying important control

points or deficiencies in controls.
b. The auditor follows a transaction from origination through the processes
and information systems until it is recorded in the accounting books.
c. It combines the audit procedures of tracing, inquiry, and observation.
d. It is an efficient way for an auditor to test the operating effectiveness of
controls.

15. Which one of the following is not an auditor's concern about a key authorization
point in the sales/collection cycle?
a. Credit must be authorized before the sale.
b. Goods must be shipped after the authorization.
c. Prices must be authorized.
d. The receiving room must have authorization before releasing items to
inventory control.

16. A client's internal control appears strong, but the CPA has elected not to perform
any tests of controls. The planned assessed level of control risk is at what level?
a. Zero.
b. Low.
c. Moderate.
d. Maximum.

17. What is the report being issued by a practitioner in an agreed-upon procedure

engagement?
a. Opinion on Factual Findings
b. Investigative Report
c. Report on Factual Findings
d. Independent Practitioner's Report on Factual Findings

18. This is the outcome of the evaluation or measurement of a subject matter

a. Subject Matter Information
b. Suitable Criteria
c. Subject Matter
d. Reasonable Assurance

19. Tracing recorded sales transactions in the sales journal to the shipping
documents (bills of lading) provides evidence about the:
a. Completeness of recording of sales transactions.
b. Occurrence of sales transactions.
c. Billing of all sales transactions.
d. Presentation of payables.

20. Which of the following is not considered to be an analytical procedure?

a. Comparisons of financial statement amounts with source documents.
b. Comparisons of financial statement amounts with nonfinancial data.
c. Comparisons of financial statement amounts with budgeted amounts.
d. Comparisons of financial statement amounts with comparable prior year
amounts.

21. Which of the following factors most likely would cause an auditor not to accept a
new audit engagement?
a. Concluding that the entity's management probably lacks integrity.

3P a g e JABELLAR/ AJABINAL/AIBAY/RBERCASIO/JM AGLINAO

 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@gmail.com

b. An inadequate understanding of the entity's internal control structure.

c. The close proximity to the end of the entity's fiscal year.
d. An inability to perform preliminary analytical procedures before assessing
control risk.

22. Which of the following is not one of the factors that make up the control
environment?
a. IT hardware and software
b. board of directors and audit committee
c. organizational structure
d. human resource policies and practices

23. Which one of the following is not an auditor's concern about a key authorization
point in the sales/collection cycle?
a. Credit must be authorized before the sale.
b. Goods must be shipped after the authorization.
c. Prices must be authorized.
d. The receiving room must have authorization before releasing items to
inventory control.

24. The most common technique used by management to misstate financial

information, and is always presumed to exist under PSA 315, is:
a. overstatement of expenses.
b. improper revenue recognition.
c. understatement of liabilities.
d. understatement of assets.

25. When an auditor encounters a scenario wherein the client entity's control
environment is ineffective, which of the following is an inappropriate response?
a. Assigning more experienced audit staff.
b. Obtaining more extensive audit evidence from substantive procedures.
c. Making changes to the nature, timing, or extent of audit procedures to be
performed.
d. Conducting more audit procedures at an interim date.

26. An auditor has been asked to report on the balance sheet of LPSK Company but
not on the other basic financial statements. The auditor will have access to all
information underlying the basic financial statements. Under these
circumstances, the auditor:
a. May accept the engagement because such engagements merely involve
limited reporting objectives.
b. May accept the engagement but should disclaim an opinion because of an
inability to apply the procedures considered necessary.
c. Should refuse the engagement because there is a client-imposed scope
limitation.
d. Should refuse the engagement in accordance with generally accepted
auditing standards.

27. An auditor who audits a business cycle that has low inherent risk should:
a. increase the amount of audit evidence gathered.
b. assign more experienced staff to that area.
c. increase the tolerable misstatement for the area.
d. expand planning procedures.

4P a g e JABELLAR/ AJABINAL/AIBAY/RBERCASIO/JM AGLINAO

 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@gmail.com

28. Which of the following is not one of the three major phases of a risk-based audit
process in accordance with PSAs?
a. Risk assessment
b. Risk response
c. Audit completion
d. Conclusion and reporting

29. The audit plan includes:

a. A description of the nature, timing and extent of planned risk assessment
procedures sufficient to assess the risk of material misstatement.
b. A description of the nature, timing and extent of planned further audit
procedures at the assertion level for each material class of transactions,
account balances and disclosures.
c. Other planned audit procedures that are required to be carried out so that
the engagement complies with our audit approach.
d. All of the above.

30. During the initial planning phase of an audit, a CPA most likely would
a. Identify specific internal control activities that are likely to prevent fraud.
b. Evaluate reasonableness of the client's accounting estimates.
c. Discuss the timing of the audit procedures with the client's management.
d. Inquire of the client's attorney as to whether any unrecorded claims are
probable of assertion.

31. An initial audit requires more audit time to complete than a recurring audit. One
of the reasons for this is that
a. new auditors are usually assigned to an initial audit.
b. predecessor auditors need to be consumed.
c. the client’s business, industry and internal control are unfamiliar to the
auditor and need to be carefully studied.
d. a larger proportion of customer accounts receivable need to be confirmed
on an initial audit.

32. Information systems and communications component of internal controls

a. Is the entity's identification and analysis of relevant risks as a basis for
their management.
b. Is a process that assesses the quality of internal control performance over
time.
c. Sets the tone of an organization, influencing the control consciousness of
its people.
d. Support the identification, capture, and exchange of information in a form
and time frame that enable people to carry out their responsibilities.

33. When considering internal control, an auditor must be aware of the concept of
reasonable assurance, which recognizes that
a. Employment of competent personnel provides assurance that the
objectives of internal control will be achieved.
b. Establishment and maintenance of internal control is an important
responsibility of the management and not of the auditor.
c. Cost of internal control procedures should not exceed the benefits
expected to be derived from the control.

5P a g e JABELLAR/ AJABINAL/AIBAY/RBERCASIO/JM AGLINAO

 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@gmail.com

d. Segregation of incompatible functions is necessary to ascertain that the

control procedures are effective.

34. Holding other planning considerations equal, a decrease in the amount of

misstatement in a class of transactions that an auditor could tolerate most likely
would cause the auditor to
a. the planned substantive tests prior to the balance sheet date
b. increase the assessed level of control risk for relevant financial statement
assertions
c. Perform the planned auditing procedures close to the balance sheet date
d. decrease the extent of auditing procedures to be applied to the class of
transactions

35. Which of the following areas is least likely an application of analytical

procedures?
a. Risk of material misstatements
b. Internal controls
c. Significant changes in the client’s industry
d. Effects of the pandemic

6P a g e JABELLAR/ AJABINAL/AIBAY/RBERCASIO/JM AGLINAO

 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@gmail.com

Auditing Problems

1. Which of the following controls would most likely detect equipment acquisitions that
are misclassified as maintenance expense?
a. Segregation of duties of employees in the accounts payable department.
b. Authorization by the board of directors of significant equipment acquisitions.
c. Independent verification of invoices for disbursements recorded as equipment
acquisitions.
d. Investigation of variances within a formal budgeting system.

2. Which of the following control activities is most likely to prevent the improper
disposition of equipment?
a. A periodic analysis of the scrap sales and the repairs and maintenance accounts.
b. Periodic comparison of removal work orders with authorizing documentation.
c. The use of serial numbers to identify equipment that could be sold.
d. A separation of duties between those authorized to dispose of equipment and
those authorized to approve removal work orders.

3. Which of the following control activities most likely would justify a reduced level of
control risk concerning property, plant and equipment acquisitions?
a. Periodic physical inspection of PPE by the internal audit staff.
b. Approval of periodic depreciation entries by a supervisor independent of the
accounting department.
c. The review of prenumbered purchase orders to detect unrecorded trade-ins.
d. Comparison of current year PPE account balances with prior-year figures.

4. Which of the following conditions would an auditor most likely assess a high level of
risk of material misstatement?
a. All material acquisitions of PPE are required to be approved by the board of
directors.
b. Most additions are self-constructed by the entity.
c. Recently acquired loans include covenants that preclude plant acquisitions for 5
years.
d. Gross PPE increased 30% during the current period.

5. Which of the following misstatements or questionable practices may be uncovered if

an auditor tours an entity’s production facility?
a. Insurance coverage on the facility has lapsed.
b. Overhead has been overapplied.
c. Depreciation expense on fully depreciated machinery has been recognized.
d. Necessary facility maintenance has not been performed.

6. The major working paper for stockholder’s equity is the

a. Schedule of all activity for each equity account for the year.
b. Confirmation of shares outstanding with stockholders.
c. Carry-forward schedule of all transactions since the initial audit.
d. Subsidiary schedule of stock issued to general ledger control.

7. A client acquired 25% of its outstanding capital stock after year-end and prior to
completion of the auditor’s field work. The auditor should
a. Advice management to adjust the statement of financial position to reflect the
acquisition.

7P a g e JABELLAR/ AJABINAL/AIBAY/RBERCASIO/JM AGLINAO

 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@gmail.com

b. Issue pro forma financial statements giving effect to the acquisition as if it had
occurred at year end.
c. Advise management to disclose the acquisition in the notes to the financial
statements.
d. Disclose the acquisition in the opinion paragraph of the auditor’s report.

8. The record of the issuance and repurchase of capital stock for the life of the corporation
is maintained in the
a. Shareholder’s capital stock master file.
b. Stock certificate books.
c. Schedule of stock owners.
d. Corporate directory.

9. The record of the outstanding shares at any given time and the source of determining
who should receive dividend checks is the
a. Shareholder’s capital stock master file.
b. Stock certificate books.
c. Schedule of stock owners.
d. Corporate directory.

10. Which of the following concerns in auditing capital stock and paid-in-capital involve
tests of balances?
a. Existing capital stock transactions are recorded.
b. Capital stock is property disclosed.
c. Recorded capital transactions are authorized.
d. All three of the above.

11. The retained earnings account would be debited for the following transactions, except
a. A 5% share dividend.
b. An appropriation of retained earnings for acquisition of property.
c. A reissuance of treasury shares below the cost.
d. A two-for-one stock split.

12. Which of the following is the most likely reason why auditors often set control risk at
a high level for bonds?
a. Small number of transactions per year.
b. Use of bond certificate book.
a. c.. Outside investors monitor payments.
c. All transactions are approved by the board of directors.

13. Which of the following audit procedures is least likely to detect an unrecorded liability?
a. Analysis and recomputation of interest expense.
b. Analysis and recomputation of depreciation expense.
c. Confirmation of accounts payable.
d. Reading and minutes of meetings of the board of directors.

14. Which of the following errors is most likely to be detected by examining unrecorded
expenditure invoices on randomly selected dates during the month after fiscal year-end?
a. Sales are overstated for the current month.
b. Expenses are overstated for the fiscal year just ended.
c. Accounts payable are understated at fiscal year end.
d. Inventory are overstated at fiscal year end.

8P a g e JABELLAR/ AJABINAL/AIBAY/RBERCASIO/JM AGLINAO

 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@gmail.com

15. Which of the following questions is most likely to be included by an auditor on an

internal control questionnaire?
a. Are direct borrowings on notes payable authorized by the board of directors?
b. Are assets that collateralize notes payable critically needed for the entity’s
continued existence?
c. Are two or more authorized signatures required on checks that repay notes
payable?
d. Are the proceeds from notes payable used for the purchase of noncurrent
assets?

16. Two months before the year end, the bookkeeper erroneously recorded the receipt
of a long-term bank loan by a debit to cash and a credit to sales. Which of the following
is the most effective procedure for detecting this type of error?
a. Analyze the notes payable journal.
b. Analyze bank confirmation information.
c. Prepare a year-end bank reconciliation.
d. Prepare a year-end bank transfer schedule.

17. During its fiscal year, a company issued, at a discount, a substantial amount of first-
mortgage bonds. When performing audit work, the independent auditor
a. Confirms the existence of the bondholders.
b. Reviews the minutes for authorization.
c. Traces the net cash received from the issuance to the bonds payable account.
d. Inspects the records maintained by the bond trustee.

18. The auditor can best verify a client’s bond sinking fund transactions and year-end
balance by
a. Confirmation with individual holders of retired bonds.
b. Recomputation of interest expense, interest payable, and amortization of bond
discount or premium.
c. Examination and count of the bonds retired during the year.
d. Confirmation with the bond trustee.

19. A client erroneously recorded a large purchase twice. Which of the following internal
control measures would be most likely to detect this error in a timely and efficient
manner?
a. Footing the purchases journal.
b. Reconciling vendor’s monthly statements with subsidiary payable ledger
accounts.
c. Tracing totals from the purchases journal to the ledger accounts.
d. Sending written quarterly confirmations to all vendors.

20. The primary reason an auditor requests letter of inquiry to a client’s attorneys is to
provide the auditor with
a. The probable outcome of asserted claims and pending or threatened litigation.
b. Corroboration of the information furnished by management about litigation,
claims and assessments.
c. The attorney’s opinions of the client’s historical experiences in recent similar
litigation.
d. A description and evaluation of litigation, claims and assessments that existed at
the balance sheet date.

21. Why is PPE typically considered to be one of the accounts least susceptible to fraud?

9P a g e JABELLAR/ AJABINAL/AIBAY/RBERCASIO/JM AGLINAO

 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@gmail.com

a. Internal control on this account is inherently effective.

b. The depreciated values are always smaller than cost.
c. For most companies, the recorded amounts of PPE are immaterial.
d. The inherent risk of PPE is usually low.

22. Which of the following controls would most likely detect equipment acquisitions that
are misclassified as maintenance expense?
a. Investigation of variances within a formal budgeting system.
b. Authorization by the board of directors of significant equipment acquisitions.
c. Independent verification of invoices for disbursements recorded as equipment
acquisitions.
d. Segregation of duties of employees in the accounts payable department.

23. An entity has leased an asset and appropriately recorded a finance lease because of
the existence of a bargain purchase option. The auditor should determine
a. Whether the interest rate used in computing the present value of the minimum
lease payments is the interest rate implicit in the lease.
b. That the cost recorded by the entity is the cost of the property to the lessor.
c. That the leased property is being depreciated over the lease term.
d. Whether the sum of the minimum lease payments, equals the fair value of the
property.

24. Assets may suffer to impairment in value for a variety of reasons, but not likely as a
result of:
a. A corporate restructuring.
b. Significant increase in market value.
c. Slumping demand for uncompetitive products.
d. Obsolescence

25. An auditor is verifying a company’s ownership of equipment. What is the best

evidence of ownership?
a. An interview with the equipment custodian verifying company ownership.
b. The presence of the equipment on the company’s statement of financial position.
c. The current year’s depreciation expense journal entry.
d. A canceled check written to acquire the equipment.

For items 26 to 30 please refer to the problem below:

You were able to gather the financial information of QT, Inc. as of December 31, 2020.
You have presented to your senior the following details for consideration:

Authorized common stock, P100 par value P 4,000,000

Cash dividend payable 160,000
Donated capital 800,000
Gain on sale of treasury stock 80,000
Net unrealized loss on FVTPL securities 96,000
Premium on Capital Stock 320,000
Premium on bonds payable 240,000
Reserve for bond sinking fund 400,000
Reserve for depreciation 600,000
Revaluation increment of PPE 800,000
Retained earnings, unappropriated 720,000
Subscribed capital stock 480,000

10 P a g e JABELLAR/ AJABINAL/AIBAY/RBERCASIO/JM AGLINAO

 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@gmail.com

Subscription receivable 120,000

Stock warrants outstanding 200,000
Treasury stock, at cost 144,000
Unissued common stock 800,000

Compute for the following:

A B C D
26. Common stock issued 4,000,000 3,200,000 3,056,000 3,680,000
27. APIC 320,000 1,400,000 1,320,000 1,200,000
28. Approp. RE 400,000 544,000 1,000,000 -
29. Legal capital 3,200,000 3,680,000 3,560,000 4,000,000

For items 30 to 32 please refer to the problem below:

January 1, 2021, an entity disclosed the following balances:

Land 4,000,000
Land improvements 1,300,000
Buildings 20,000,000
Machinery and equipment 8,000,000

During the current year, the following transactions occurred:

* A tract of land was acquired for P2,000,000 cash as a building site.

* A plant facility consisting of land and building was acquired in exchange for 200,000
shares of the entity. On the acquisition date, each share had a quoted price of P45 on
a stock exchange. The plant facility was carried on the seller’s books at P1,600,000
for land and P5,400,000 for the building at the exchange date. Current appraised
values for the land and the building, respectively, are P2,000,000 and P8,000,000.
The building has an expected life of forty years with a P200,000 residual value.

* Items of machinery and equipment were purchased at a total cost of P4,000,000.

Additional costs incurred were freight and unloading P100,000 and installation
P300,000. The equipment has a useful life of ten years with no residual value.

* Expenditures totaling P1,200,000 were made for new parking lot, street and sidewalks
at the entity’s various plant locations. These expenditures had an estimated useful life
of fifteen years.

* Research and development costs were P1,100,000 for the year.

* A machine costing P200,000 on January 1, 2014 was scrapped on June 30, 2021.
Straight-line depreciation had been recorded on the basis of a 10-year life with no
residual value.

* A machine was sold for P500,000 on July 1, 2021. Original cost of the machine sold
was P700,000 on January 1, 2013, and it was depreciated on the straight line basis
over an estimated useful life of eight years and a residual value of P50,000.

30. What is the total cost of land on December 31, 2021?

a. 7,800,000

11 P a g e JABELLAR/ AJABINAL/AIBAY/RBERCASIO/JM AGLINAO

 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@gmail.com

b. 7,600,000
c. 8,000,000
d. 6,800,000

31. What is the total cost of land improvements on December 31, 2021?
a. 1,200,000
b. 3,600,000
c. 1,300,000
d. 2,500,000

32. An entity is the plaintiff in a patent infringement case. The entity has a high probability
of a favorable outcome and can reasonably estimate the amount of the settlement. What
is the proper accounting treatment of the patent infringement case?
a. No reporting is required at this time
b. A gain contingency for the minimum estimated amount of the settlement
c. Disclosure in the notes only
d. A gain contingency for estimated probable settlement

For items 33 to 35 please refer to the problem below:

On 1 January 2020, LUNA, Inc. issued 12% bonds payable in the face amount of
P20,000,000. These bonds will mature on 31 December 2029. The bonds were issued
to yield 10%. Interest is payable semiannually every July 1 and December 31.

33. How much is the interest expense for the year-ended 31 December 2024?
a. P 2,171,697 c. P 2,182,230
b. P 2,117,696 d. P 2,160,327

34. How much is the amortization on 1 July 2026?

a. (P 135,368) c. P 142,136
b. (P 142,136) d. P 135,367

35. What is the carrying value of the bonds on 31 December 2028?

a. P 20,371,882 c. P 20,190,476
b. P 20,554.649 d. P 20,000,000

12 P a g e JABELLAR/ AJABINAL/AIBAY/RBERCASIO/JM AGLINAO

 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@gmail.com

AUD First Preboard Examinations – ANSWER KEY

iCARE Accountancy Review
st
1 Open Preboard Examination, Batch 3

Auditing Theory Auditing Problems

1. B 1. D
2. C 2. D
3. C 3. A
4. D 4. B
5. D 5. D
6. B 6. C
7. C 7. C
8. D 8. C
9. C 9. A
10. B 10. B
11. C 11. D
12. D 12. A
13. D 13. B
14. D 14. C
15. D 15. A
16. D 16. B
17. C 17. B
18. A 18. D
19. B 19. B
20. A 20. B
21. A 21. D
22. A 22. A
23. D 23. A
24. B 24. B
25. D 25. D
26. A 26. B
27. C 27. B
28. C 28. B
29. D 29. B
30. A 30. A
31. C 31. D
32. D 32. C
33. C 33. A
34. C 34. A
35. B 35. A

13 P a g e JABELLAR/ AJABINAL/AIBAY/RBERCASIO/JM AGLINAO