DMC COLLEGE FOUNDATION

BACHELOR OF SCIENCE IN ACCOUNTANCY

AUDITING THEORY
SY: 2016-2017

NAME:____________________________________________________________ DATE:__________________________

MULTIPLE CHOICE (1 point each)

INSTRUCTION: Write the letter of your best choice before the number. Use ballpen only and make sure no erasures or alterations in any form in
writing the letter of your choice.

1. The expertise that distinguishes auditors from accountants is in the

a. ability to interpret generally accepted from accounting principles.
b. requirement to possess education beyond the Bachelor’s degree.
c. accumulation and interpretation of evidence.
d. ability to interpret ASC Statements.
2. Which of the following is true of the report based on agreed-upon procedures?
a. The report is restricted to those parties who have agreed to the procedures to be performed.
b. The CPA provides the recipients of the report limited assurance as to reasonableness of the assertion(s) presented in the financial
information.
c. The report states that the auditor has not recognized any basis that requires revision of financial statements.
d. The report should state that the procedures performed are limited to analytical procedures and inquiry.
3. Which of the following is an objective of a review engagement?
a. Expressing a positive opinion that the financial information is presented in conformity with generally accepted accounting principles.
b. Expressing a limited assurance to users who have agreed as to procedures that will be performed by the CPA.
c. Reporting whether material modifications should be made to such financial statements to make them conform with generally accepted
principles.
d. Reporting that the financial statements, in all materials respects, fairly present the financial position and operating results of the client.
4. The primary goal of the CPA in performing the attest function is to
a. detect fraud.
b. examine individual transactions so that the auditor may certify as to their validity.
c. determine whether the client’s assertions are fairly stated.
d. assure the consistent application of correct accounting procedures.
5. The single feature that most clearly distinguishes auditing, attestation, and assurance is
a. Type of service. c. Scope of services.
b. Training required to perform the service. d. CPA’s approach to the service.
6. Because an external auditor is paid a fee by a client company, he or she
a. Is absolutely independent and may conduct an audit.
b. May be sufficiently independent to conduct an audit.
c. Is never considered to be independent.
d. Must receive approval of the Securities and Exchange Commission before conducting an audit.
7. Which of the following best describes why an independent auditor reports on financial statements?
a. Independent auditors are likely to detect fraud.
b. Competing interests may exist between management and the users of the statements.
c. Misstated account balances are generally corrected by an independent audit.
d. Ineffective internal controls may exist.
8. It refers to the audit procedures deemed necessary in the circumstances to achieve the objective of the audit.
a. Scope of an audit c. Objective of an audit
b. Audit program d. Reasonable assurance
9. The government agency tasked by law of implementing and enforcing the regulatory policies of the national government with respect to the
regulation and licensing of the various professions and occupations under its jurisdiction is
a. PRC c. COA
b. BOA d. SEC
10. The amount of audit fees depend largely on the
a. Size and capitalization. c. availability of cash.
b. Amount of profit for the year. d. volume of audit of work and degree of competence and responsibilities involved.
11. As defined in the IRR of RA 9298, it is an organization engaged in the practice of public accountancy, consisting of sole proprietor, either
alone or with one or more staff members.
a. Firm c. Partnership
b. Individual CPA d. Sector
12. The APO shall submit its nominations with complete documentation to the Commission not later than _______ prior to the expiry of the
term of an incumbent chairman or member.
a. 30 days c. 90 days
b. 60 days d. 120 days
13. Which statement is incorrect regarding the term of office of the chairman and the members of the Board of Accountancy (BOA)?
a. The Chairman and members of the Board shall hold office for a term of three years.
b. No person who has served two successive complete terms shall be eligible for reappointment until the lapse of one year.
c. A person may serve the BOA for not more than twelve years.
d. A member of the BOA may continuously serve office for more than nine years.
14. The Board, subject to the approval of the Commission, may revise or exclude any of the subjects and their syllabi, and add new ones as the
need arises. Provided that the change shall not be more often than every
a. 2 years c. 4 years

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 b. 3 years d. 5 years
15. The BOA shall submit to the PRC the rating obtained by each candidate within how many calendar days after the examination?
a. 5 days c. 15 days
b. 10 days d. 30 days
16. A Professional Identification Card bearing the registration number, date of issuance, expiry date, duly signed by the chairperson of the
Commission, shall be issued to every registrant renewable every
a. Two years c. Four years
b. Three years d. Five years
17. A person whose CPA certificate has been revoked
a. Can no longer be reinstated as a CPA.
b. Is automatically reinstated as a CPA after two years if he has acted in an exemplary manner.
c. May be reinstated as a CPA by the Board of Accountancy after two years if has acted in an exemplary manner.
d. May be reinstated by the PRC after two years if he has acted in an exemplary manner.
18. A certificate of accreditation shall be issued to certified public accountants in public practice only upon showing, in accordance with rules
and regulations promulgated by the Board and approved by the Commission, that such registrant has acquired how many years of
meaningful experience in any of the areas of public practice?
a. One c. Three
b. Two d. Four
19. The Accountancy Law provides that all working papers made during an audit shall be the property of the auditor. These working papers
shall include the following, except
a. Schedules and memoranda made by the CPA and his staff. c. excerpts or copies of documents furnished the auditor.
b. Working papers prepared and submitted by the client. d. reports submitted by the CPA to the client.
20. Individual CPAs, Firms or Partnerships of CPAs, including partners and staff members thereof shall register with the BOA and the PRC. If
the application for registration of AB and Co., CPAs was approved on August 30, 2005, it shall file for renewal on or before
a. September 30, 2007 c. December 31, 2007
b. September 30, 2008 d. August 30, 2008
21. Any person who shall violate any of the provisions of RA 9298 or any of its implementing rules and regulations as promulgated by the
Board subject to the approval of the Commission, shall, upon conviction, be punished by
a. A fine of not less than fifty thousand pesos (P50,000.00) or by imprisonment for a period not exceeding two (2) years or both.
b. A fine of not less than one hundred thousand pesos (P100,000.00) or by imprisonment for a period not exceeding two (2) years or
both.
c. A fine of not less than fifty thousand pesos (P50,000.00) or by imprisonment for a period not exceeding three (3) years or both.
d. A fine of not less than one hundred thousand pesos (P100,000.00) or by imprisonment for a period not exceeding three (3) years or
both.
22. Below are the names of three CPA firms and pertinent facts relative to each firm. Unless otherwise indicated, the individuals named are
CPAs and partners, and there are no other partners. Which firm name and related facts indicates a violation of the IRR of RA 9298?
a. Joyce, Ara and Angela, CPAs (Joyce died about 10 years ago, Ara and Angela are continuing the firm)
b. Lupin and Fujico, CPAs (the name of Goymon a third active partner is omitted in the firm name)
c. Hugo and Pugo, CPAs (Hugo died 25 months ago, Pugo is continuing the firm as a sole proprietor)
d. Bubu and Bibi, CPAs (Bibi died 3 years ago, Bobot was admitted into the firm partnership 2 months after Bibi’s death)
23. Close family include the following, except
a. Parent c. non-dependent child
b. Sibling d. spouse
24. A combination of impartiality, intellectual honesty and a freedom from conflicts of interest.
a. Objectivity c. Professional skepticism
b. Independence of mind d. Independence
25. A distinct sub-group, whether organized on geographical or practice lines.
a. Office c. Firm
b. Practice d. Network firm
26. The communication to the public of facts about a professional accountant which are not designed for the deliberate promotion of that
professional accountant.
a. Publicity c. Indirect promotion
b. Advertising d. Solicitation
27. The term professional accountant in public practice includes the following, except
a. A sole proprietor providing professional services to client.
b. Each partner or person occupying a position similar to that of a partner staff in a practice providing professional services to a client.
c. Professional accountants employed in the public sector having managerial responsibilities.
d. A firm of professional accountants in public practice.
28. Related entity is an entity that has any of the following relationships with the client, except
a. An entity that has direct or indirect control over the client provided the client is material to such entity.
b. An entity with a direct financial interest in the client even though such entity has no significant influence over the client provided the
interest in the client is material to such entity.
c. An entity over which the client has direct or indirect control.
d. An entity which is under common control with the client (referred to as a “sister entity”) provided the sister entity and the client are
both material to the entity that controls both client and sister entity.
29. The principle of professional behavior requires a professional accountant to
a. Be straightforward and honest in performing professional services.
b. Be fair and should not allow prejudice or bias, conflict of interest or influence of others to override objectivity.
c. Perform professional services with due care, competence and diligence.
d. Act in a manner consistent with the good reputation of the profession and refrain from any conduct which might bring discredit to the
profession.
30. Which of the following is incorrect regarding integrity and objectivity?

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 a. Integrity implies not merely honesty but fair dealing and truthfulness.
b. The principle of objectivity imposes the obligation on all professional accountants to be fair, intellectually honest and free of conflicts
of interest.
c. Professional accountants serve in many different capacities and should demonstrate their objectivity in varying circumstances.
d. Professional accountants should neither accept nor offer any gifts or entertainment.
31. A professional accountant has a professional duty or right to disclose confidential information in each of the following, except
a. To disclose to BIR fraudulent scheme committed by the client on payment of income tax.
b. To comply with technical standards and ethics requirements.
c. To comply with the quality review of a member body or professional body.
d. To respond to an inquiry or investigation by a member body or regulatory body.
32. Which of the following is incorrect regarding confidentiality?
a. Professional accountants have an obligation to respect the confidentiality of information about a client’s or employer’s affairs acquired
in the course of professional services.
b. The duty of confidentiality ceases after the end of the relationship between the professional accountant and the client or employer.
c. Confidentiality should always be observed by a professional accountant unless specific authority has been given to disclose
information or there is a legal or professional duty to disclose.
d. Confidentiality requires that a professional accountant acquiring information in the course of performing professional services neither
uses appear that information for personal advantage or for the advantage of a third party.
33. Not all engagements performed by professional accountants are assurance engagements. Other engagements frequently performed by
professional accountants that are not assurance engagements include the following, except
a. Agreed-upon procedures . c. Management consulting.
b. Compilation of financial or other information. d. examination of prospective financial information.
34. Occurs when a firm or a member of the assurance team could benefit from a financial interest in, or other self-interest conflict with, an
assurance client.
a. Self-interest threat c. Advocacy threat
b. Self-review threat d. Familiarity threat
35. Which of the following least likely create “self-interest threat”?
a. Undue dependence on total fees from an assurance client.
b. Concern about the possibility of losing the engagement.
c. Having a close business relationship with an assurance client.
d. Pressure to reduce inappropriately the extent of work performed in order to reduce fees.
36. Examples of circumstances that may create self-review threat least likely include:
a. Preparation of original data used to generate financial statements or preparation of other records that are the subject matter of the
assurance engagement.
b. A member of the assurance team being, or having recently been, an employee of the assurance client in a position to exert direct and
significant influence over the subject matter of the assurance engagement.
c. Performing services for an assurance client that directly affect the subject matter of the assurance engagement.
d. Potential employment with an assurance client.
37. A CPA-lawyer, acting as a legal counsel to one of his audit client, is an example of
a. Self-interest threat c. Advocacy threat
b. Self-review threat d. Familiarity threat
38. Examples of circumstances threat may create familiarity threat least likely include
a. A member of the assurance team having an immediate family member or close family member who is a director or officer of the
assurance client.
b. A member of the assurance team having an immediate family member or close family member who, as an employee of the assurance
client, is in a position to exert direct and significant influence over the subject matter of the assurance engagement.
c. A former partner of the firm being a director, officer of the assurance client or an employee in a position to exert direct and significant
influence over the subject matter of the assurance engagement.
d. Dealing in, or being a promoter of, share or other securities in an assurance client.
39. When threats to independence that are not clearly insignificant are identified, the following are appropriate, except
a. Professional judgment is used to determine the appropriate safeguards to eliminate threats to independence or to reduce them to an
acceptable level.
b. In situations when no safeguards are available to reduce the threat to an acceptable level, the only possible actions are to eliminate the
activities or interests creating the threat, or to refuse to accept or continue the assurance engagement.
c. When the firm decides to accept or continue the assurance engagement, the decision need not be documented provided the threats
identified were eliminated.
d. The evaluation of the significance of any threats to independence and the safeguards necessary to reduce any threats to an acceptable
level, takes into account the public interest.
40. Which of the following is not likely a threat to independence?
a. Acting as an advocate on behalf of an assurance client in litigation or in resolving disputes with third parties.
b. Long association of a senior member of the assurance team with the assurance client.
c. Threat of replacement over a disagreement with the application of an accounting principle.
d. Owning immaterial indirect financial interest in an audit.
41. When the safeguards available are insufficient to eliminate the threats to independence or to reduce them to an acceptable level, or when a
firm chooses not to eliminate the activities or interest creating the threat, the only course of action available will be the
a. Issuance of an adverse opinion. c. issuance of unqualified opinion with explanatory paragraph.
b. Issuance of qualified opinion or disclaimer of opinion. d. refusal to perform, or withdrawal from, the assurance engagement.
42. Which of the following in incorrect regarding engagement period?
a. The period of the engagement starts when the assurance team begins to perform assurance services and ends when the assurance report
is issued, except when the assurance engagement is of a recurring nature.
b. If the assurance engagement is expected to recur, the period of the assurance engagement ends with the notification by either party that
the professional relationship has terminated or the issuance of the final assurance report, whichever is earlier.

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 c. In the case of an audit engagement, the engagement period includes the period covered by the financial statements reported on by the
firm.
d. When an entity becomes an audit client during or after the period covered by the financial statements that the firm will report on, the
firm should consider whether any threats to independence may be created by previous services provided to the audit client.
43. When a member of the assurance team knows that his or her close family member has a direct financial interest or a material indirect
financial interest in the assurance client, a self-interest threat may be created. Safeguards least likely include:
a. The close family member disposing of all or a sufficient portion of the financial interest at the earliest practical date.
b. Discussing the matter with those charged with governance, such as the audit committee.
c. Involving a professional accountant who took part in the assurance engagement to review the work done by the member of the
assurance team with the close family relationship or otherwise advise as necessary.
d. Removing the individual from the assurance engagement
44. Family and personal relationships between a member of the assurance team and a director, an officer or certain employees, depending on
their role, of the assurance client, least likely create
a. Self-interest threat c. Intimidation threat
b. Self-review threat d. Familiarity threat
45. A director, an officer or an employee of the assurance client in a position to exert direct and significant influence over the subject matter of
the assurance engagement has been a member of the assurance team or partner of the firm. This situation least likely create
a. Self-interest threat c. intimidation threat
b. Advocacy threat d. familiarity threat
46. Which of the following will least likely impair independence?
a. An immediate family member of a member of the assurance team is a director, an officer or an employee of the assurance client in a
position to exert direct and significant influence over the subject of the assurance engagement.
b. A member of the assurance team participates in the assurance engagement while knowing, or having reason to believe, that he or she
is to, or may, join the assurance client some time in the future.
c. A partner or employee of the firm serves as an officer or as a director on the board of an assurance client.
d. A partner or employee of the firm or a network firm serves as Company Secretary for an audit client , the duties and functions
undertaken are limited to those of a routine and formal administrative nature as such as the preparation of minutes and maintenance of
statutory returns.
47. These following services are considered to be a normal part of the audit process and do not, under circumstances, threaten independence,
except
a. Analyzing and accumulating information for regulatory reporting.
b. Assisting in the preparation of consolidated financial statements.
c. Drafting disclosure items.
d. Having custody of an assurance client’s assets.
48. Which of the following is least likely considered to create a threat to independence?
a. The provision of services by a firm or network firm to an audit client which involve either the design or the implementation of
financial information technology systems that are used to generate information forming part of a client’s financial statements.
b. The provision of services in connection with the assessment, design and implementation of internal accounting controls and risk
management controls,
c. The lending of staff by a firm, or network firm, to an audit client when the individual is in a position to influence the preparation of a
client’s accounts or financial statements.
d. The provision of litigation support services to an audit client, which include the estimation of the possible outcome and thereby affects
the amounts or disclosures to be reflected in the financial statements.
49. Fees calculated on a predetermined basis relating to the outcome or result of a transaction or the result of the work performed.
a. Contingent fees c. Flat sum fees
b. Retainer fees d. Per diem fees
50. Which of the following is least likely to create a threat to independence?
a. The fees generated by the assurance client represent a large proportion of the revenue of an individual partner.
b. The firm charges a contingent fee to an assurance client.
c. Accepting gifts or hospitality, the value of which is clearly insignificant, from an assurance client.
d. When litigation takes place, or appears likely, between the firm or a member of the assurance team and the assurance client.
51. Safeguards created by the profession, legislation or regulation, include the following, except
a. Educational, training and experience requirements for entry into the profession.
b. Continuing education requirements.
c. Legislation governing the independence requirements of the firm.
d. Policies and procedure that emphasize the assurance client’s commitment to fair financial reporting.
52. Safeguards within the assurance client, include the following, except
a. Professional standards and monitoring and disciplinary processes.
b. The assurance client has competent employees to make managerial decisions.
c. Internal procedures that ensure objective choices in commissioning non-assurance engagements.
d. A corporate governance structure, such as an audit committee, that provides appropriate oversight and communications regarding a
firm’s services.
53. Safeguards within the firm’s own systems and procedures, include the following, except
a. Firm leadership that stresses the importance of independence and the expectation that members of assurance teams will act in the
public interest.
b. External review of a firm’s quality control system.
c. Policies and procedures to implement and monitor quality control of assurance engagements.
d. Policies and procedures that will enable the identification of interests or relationships between the firm or members of the assurance
team and assurance clients.
54. Which of the following is an incorrect phrase?
a. Auditing is a systematic process. c. Auditing evaluates evidence regarding assertions.
b. Auditing subjectively obtains and evaluates evidence. d. Auditing communicates results to interested users.

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 55. In “auditing” accounting data, the concern is with
a. Determining whether recorded information properly reflects the economic events that occurred during the accounting period.
b. Determining if fraud has occurred.
c. Determining if taxable income has been calculated correctly.
d. Analyzing the financial information to be sure that it complies with government requirements.
56. Users of financial statements demand independent audit because
a. Users demand assurance that fraud does not exist. c. Users expect auditors to correct management errors.
b. Management may not be objective in reporting. d. Management relies on the auditor to improve internal control.
57. Which of the following types of auditing is performed most commonly CPAs on a contractual basis?
a. Internal auditing c. Government auditing
b. BIR auditing d. External auditing
58. Which of the following is incorrect regarding the “three-party relationship” element of assurance engagements?
a. Professional accountants as those persons who are members of an IFAC member body, which should be in public practice.
b. The responsible party and the intended user will often be from separate organizations but need not be.
c. The responsible party is the person or persons, either as individuals or representatives of an entity, responsible for the subject matter.
d. The intended user is the person or class of persons for whom the professional accountant prepares the report for a specific use or
purpose.
59. Engagements frequently performed by professional accountants that are not assurance engagements include the following except
a. agreed-upon procedures. c. compilation.
b. compliance audit. d. management consulting.
60. The decision as to whether the criteria are suitable involves considering whether the subject matter is capable of reasonably consistent
evaluation against or measurement using such criteria. The characteristics for determining whether criteria are suitable include the
following, except
a. Relevance c. Understandability
b. Reliability d. Sufficiency
61. When the professional accountant has obtained sufficient appropriate evidence to conclude that the subject matter conforms in all material
respects with identified suitable criteria, he or she can provide what level of assurance?
a. None c. Moderate
b. High d. Absolute
62. Which of the following procedures ordinarily performed during an audit that are also performed in review?
a. Assessment of accounting and internal control systems. c. Tests of records and of responses to inquiries.
b. Test of controls. d. Inquiry and analytical procedures.
63. Agreed-upon procedures provides what level of assurance?
a. None c. Moderate
b. High d. Absolute
64. Assurance engagement
a. Is an engagement in which a practitioner is engaged to issue, or does issue, a written communication that expresses a conclusion about
the reliability of a written assertion that is the responsibility of another party.
b. Is a systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to
ascertain the degree of correspondence between those assertions and established criteria and communicating the results to interested
users.
c. Is an engagement in which the auditor provides a moderate level of assurance that the information subject to the engagement is free of
material misstatement.
d. Is an engagement intended to enhance the credibility of information about a subject matter by evaluating whether the subject matter
conforms in all material respects with suitable criteria, thereby improving the likelihood that the information will meet the needs of an
intended user.
65. Which of the following is an objective of a review engagement?
a. Expressing a positive opinion that the financial information is presented in conformity with generally accepted accounting principles.
b. Expressing a limited assurance to users who have agreed as to procedures that will be performed by the CPA.
c. Reporting whether material modifications should be made to such financial statements to make them conform with generally accepted
accounting principles.
d. Reporting that the financial statements, in all material respects, fairly present the financial position and operating results of the client
66. According to Philippine Standard on Auditing, the procedures employed in doing compilation are:
a. Designed to enable the accountant to express a limited assurance.
b. Designed to enable the accountant to express a negative assurance.
c. Not designed to enable the accountant to express any form of assurance.
d. Less extensive than review procedures but more extensive than agree-upon procedures.
67. In determining audit fees, an auditor may take into account each of the following except
a. Volume and intricacy of work involved. c. Number and cost of manhours needed.
b. Degree of responsibility. d. Size and amount of capital of client.
68. Practice in Public Accountancy shall constitute in a person
a. Involved in decision making requiring knowledge in the science of accounting, or when such employment or position requires that the
holder thereof must be a certified public accountant.
b. In an educational institution which involves teaching of accounting, auditing, management advisory services, finance, business law,
taxation, and other technically related subjects.
c. Who holds, or is appointed to, a position in an accounting professional group in government or in a government owned and /or
controlled corporation, including those performing proprietary functions, where decision making requires professional knowledge in
the science of accounting.
d. Holding out himself/herself as one skilled in the knowledge, science and practice of accounting, and as a qualified person to render
professional services as a certified public accountant; or offering or rendering, or both, to more than one client on a fee basis or
otherwise.
69. A member of the BOA shall, at the time of his/her appointment, possess the following qualifications, except

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 a. Must be a natural-born citizen and resident of the Philippines.
b. Must be a duly registered CPA with more than ten years or work experience in any scope of practice of accountancy.
c. Must be of good moral character and must not have been convicted of crimes involving moral turpitude.
d. Must not be a director or officer of the APO at the time of his/her appointment.
70. Financial interest means
a. Any bank which is used solely for the banking of client’s monies.
b. Any monies received by a professional accountant in public practice to be held or paid out on the instruction of the person from whom
or on whose behalf they are received.
c. A financial interest beneficially owned through a collective investment vehicle, estate, trust or other intermediary over which the
individual or entity has no control.
d. An interest in equity or other security, debenture, loan or other debt instrument of an entity, including rights and obligations to acquire
such an interest and derivatives directly related to such interest.
71. Professional accountants may encounter problems in identifying unethical behavior or in resolving an ethical conflict. When faced with
significant ethical issues, professional accountants should do the following, except
a. Follow the established policies of the employing organization to seek a resolution of such conflict.
b. Review the conflict problem with the immediate superior if the organization’s policies do not resolve the ethical conflict.
c. If the problem is not resolved with the immediate superior and the professional accountant determines to go to the next higher
managerial level, the immediate superior need not be notified of the decision.
d. Seek counseling and advice on a confidential basis with an independent advisor or the applicable professional accountancy body or
regulatory body to obtain understanding of possible courses of action.
72. Occurs when, by virtue of a close relationship with an assurance client, its directors, officers or employees, a firm or a member of the
assurance team becomes too sympathetic to the client’s interests.
a. Self-interest threat c. Advocacy threat
b. Self-review threat d. Familiarity threat
73. The underlying reason for a code of professional conduct for any profession is
a. That it is required by congress.
b. The need for public confidence in the quality of the service of the profession.
c. That it provides a safeguard to keep unscrupulous people out.
d. That it allows Professional Regulation Commission to have a yardstick to measure deficient performance.
74. A CPA should not be associated with reports, returns, communications or other information where they believe that the information:
a. Contains materially false or misleading statements.
b. Contains statements or information furnished recklessly.
c. Omits or obscures information required to be included where such omission or obscurity would be misleading.
d. All of these.
75. The principle of professional competence and due care imposes which of the following obligations on CPA’s?
a. To refrain from disclosing confidential information obtained as a result of professional and business relationships without proper and
specific authority unless there is a legal or professional right or duty to disclose.
b. To comply with relevant laws and regulation laws and regulations and avoid any situation that may bring discredit to the profession.
c. To act diligently in accordance with applicable technical and professional standards when providing professional services.
d. Not to compromise professional or business judgment because of bias, conflict of interest or undue influence of others.
76. Competence as a CPA includes all of the following, except:
a. Having the technical qualifications to perform an engagement.
b. Possessing the ability to supervise and evaluate the quality of staff work.
c. Warranting the infallibility of the work performed.
d. Consulting other if additional technical information is needed.
77. A CPA should maintain objectivity and free of conflicts of interest when performing:
a. Audits, but not any other professional services. c. All attestation and tax services, but not other professional services.
b. All attestation services, but not other professional services. d. All professional services.
78. For assurance engagements provided to clients that are not audit clients, when the assurance report is expressly restricted for use by
identified users, the following should be independent of the client:
a. The members of the assurance team, the firm and network firms. c. The members of the assurance team only.
b. The members of the assurance team and the firm only. d. The members of the assurance team and network firms only.
79. The rendering of two or more types of professional services concurrently:
a. Is a violation of the Code of Ethics.
b. Would impair integrity, objectivity or independence, or the good reputation of the profession.
c. Does not itself impair integrity, objectivity or independence.
d. Is inconsistent with the practice of public accountancy.
80. This is the communication to the public of information as to the services or skills provided by professional accountants in public practice
with a view to procuring professional business.
a. Advertising c. Publicity
b. Solicitation d. Marketing professional services

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