FAR EASTERN UNIVERSITY

INSTITUTEOF ACCOUNTS, BUSINESSANDFINANCE

Department of Accountancy & Internal Auditing

ASSURANCE PRINCIPLES
2nd Semester AY 2017-2018
ASSIGNMENT 4 – Overview of FS Audit Process

Name Date
(Family Name) (First Name) (Middle Name) Section
Professor Day/Time
Stud. No. Score
Room Rating

ANSWER SHEET
Part 1 – TRUE OR FALSE (15 points)
Instructions: State whether the given statements in Chapter 7 of your textbook if TRUE or FALSE. In case the
statement is false, state the reason why such statement is false. Briefly explain your answers. Answers must be
manually written. Use black ink. Liquid paper and pencil is not allowed. No credit points will be given for not following
instructions.

the justification
does not justify

of word makes
Explanation is
Answer

Wrong choice
the statement
not related to

Explanation

the answer
If
TRUE

wrong
issue
or
No. FALSE BRIEF explanation if the statement is FALSE
1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

1
Part 2 – Multiple choice questions (30 points)
Instructions: Choose the correct answer among the given choices in Multiple Choice Questions in Chapter 7
of your textbook. Use only CAPITAL LETTERS. Answers must be manually written. Use black ink. Liquid paper
and pencil is not allowed. No credit points will be given for not following instructions.

1. 11. 21.
2. 12. 22.
3. 13. 23.
4. 14. 24.
5. 15. 25.
6. 16. 26.
7. 17. 27.
8. 18. 28.
9. 19. 29.
10. 20. 30.

Part 3 – Case (15 points)

Instructions: Answer briefly the requirement of the case in Chapter 7 – Case 2 (Engagement Letter) but follow
the requirements below. Write your answer below using black ink. Write legibly.. Liquid paper and pencil is not
allowed. No credit points will be given for not following instructions.

Requirement 1 (5 POINTS):
Identify a maximum of five (5) errors or deficiencies in the draft of the given engagement letter. Answers must be
manually written.

Requirement 2 (10 POINTS):

Revised the draft to conform to the principles mentioned in PSA 210, Terms of Engagement. Your answer must be
computerized using long bond paper (8.5” x 13”), arial font, font size 10, with letter head of your assumed auditing firm
as sole practitioner (Example, Juan dela Cruz, CPA) with complete office address and contact number. This must be
attached to this answer sheet as last pages.