Scribd
Upload
2K views

Quiz

- Mirage Inc. asked the auditor to audit its computer chip business segment. The auditor discovered an item that did not comply with PFRS, but further audit procedures found the item to be immaterial. The audit opinion issued would most likely be an unqualified opinion. - In auditing Cash Co., the auditor found a material misstatement that did not comply with certain PFRS/PAS provisions. The audit report issued would most likely be an adverse opinion. - When control and inherent risks are assessed at a maximum level, the appropriate audit procedure is to omit tests of controls and perform substantive testing at year-end. - In auditing ESELYU Inc., management prevented the auditor from obtaining

Uploaded by

Ren
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
2K views

Quiz

- Mirage Inc. asked the auditor to audit its computer chip business segment. The auditor discovered an item that did not comply with PFRS, but further audit procedures found the item to be immaterial. The audit opinion issued would most likely be an unqualified opinion. - In auditing Cash Co., the auditor found a material misstatement that did not comply with certain PFRS/PAS provisions. The audit report issued would most likely be an adverse opinion. - When control and inherent risks are assessed at a maximum level, the appropriate audit procedure is to omit tests of controls and perform substantive testing at year-end. - In auditing ESELYU Inc., management prevented the auditor from obtaining

Uploaded by

Ren
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 10

Mirage Inc.

asked you to be one if its auditors in its business segment that produces
and manufactures computer chips. In your audit, you have discovered an item that
diverts from the PFRS. Further audit procedures revealed that the item is immaterial.
Which of the following is most likely to be the audit opinion issued?
Qualified or Disclaimer of Opinion
Qualified or Adverse
Adverse or Disclaimer of Opinion
Unqualified Opinion

In your audit of Cash Co., after gathering sufficient appropriate evidence, you were
able to identify a material misstatement that is not in accordance with certain
PFRS/PAS provisions. which of the following reports would you most likely issue?
Disclaimer of Opinion
Adverse or Disclaimer
Qualified or Adverse
Unqualified

Which of the following procedures is most appropriately done if the control risk and
inherent risk was assessed at a maximum level?
Perform tests of controls, then perform substantive testing at an interim period
Perform tests of controls, then perform substantive testing at year-end
Omit test of controls, then perform substantive testing at year-end
Omit test of controls, then perform substantive testing at an interim period

In auditing the financial statements of ESELYU Inc., the management has deliberately
precluded you from gathering evidence in one of its cash accounts which you perceive
to be material in regards to the audit. Which of the following audit opinion are you
most likely to express?
Unqualified Opinion if the item is material and non-pervasive
Qualified opinion if the item is material and pervasive
Adverse Opinion if the item is material and pervasive
Disclaimer of Opinion if the item is material and pervasive

An entity’s management is responsible for the preparation and fair presentation of the
financial statements. Its responsibility includes all of the following, except:
Selecting and applying appropriate accounting policies
Making accounting estimates that are reasonable in the circumstance
Designing, implementing and maintain internal control relevant to the preparation and
presentation of fair financial statements
Assessing the risk of material misstatements

Which of the following types of misstatements would an auditor least likely be


concerned with in auditing the occurrence of sales?
Sale recorded more than once
Shipments in transit to a customer at year-end
Recorded sale with no shipment
Shipments made to nonexistent customers

Which of the following best describes the reason why an independent auditor reports
on financial statements?
Different interests may exist between the company, preparing the statements and the persons
during the statements.
A misstatement of account balances may exist and is generally corrected as the result of the
independent auditor's work.
A poorly designed internal control system may be in existence.
A management fraud may exist and it is more likely to be detected by independent auditors.

USE THE FOLLOWING PROBLEM TO ANSWER #8 and 9

8. The unadjusted net income for the year 2019 is:


P1,582,200
P1,570,200
P1,521,000
P1,540,200

9. By how much would the December 31, 2020 retained earnings be misstated if the
books are not yet closed?
Retained earnings is overstated by P70,800
Retained earnings is overstated by P76,800
Retained earnings is overstated by P58,800
Retained earnings is overstated by P94,800

10. At December 31, 2016, the advertising account of COURAGE Company had a
balance of P146,000 before any year-end adjustment relating to the following:
Brochures and leaflets for a sales promotional campaign in January 2017 amounting
to P15,000 was included in the P146,000 balance. Airtime for the radio
advertisements during December 2016 for P9,000 was billed to COURAGE on
January 2, 2017. COURAGE paid the full amount on January 9, 2017. What amount
should COURAGE report as advertising expense in its income statement for the year
ended December 31, 2016?
140,000
155,000
131,000
146,000

11. What is the audited net sales balance?

P5,280,000
P5,700,000
P6,080,000
P6,400,000

12. What is the total amount of cash received from customers during the year?
P10,890,000
P10,980,000
P10,350,000
P 9,810,000

USE THE FOLLOWING PROBLEM TO ANSWER #13 and 14


13. Determine the audited balance of Depreciation expense under the accrual basis:
P950,000
P100,000
P800,000
P900,000

14. Determine the audited balance of Net income under the accrual basis:
P5,000,000
P3,500,000
P5,500,000
P3,000,000

15. What is the net effect of the above errors to the 2017 Net Income?
63,000 Understated
63,000 Overstated
13,000 Understated
13,000 Overstated
Put your answers on the space provided. NO COMMAS. For the last item, Please upload your solutions before
submitting. This would make sure that you have complied with the requirements of the form. Again, only
solutions in the Long Problems are needed. Thank you!

1.Positive amount means understated. Negative Amount using (-) means overstated.
Example:
a. 50000
This item means your answer is "50,000 understated"

c. -25000
This item means your answer is "25,000 overstated"

1. What is the effect of the errors to January 1, 2019 Retained Earnings? (Overstated
or Understated) Use the following problem to answer the question *

Your answer

3. If the errors were discovered in January 2018, what must be the credit to adjust
2017 Net Income/ Retained Earnings given the following problem? (Indicate Account
Title then Amount, for example, "Cash 5000) WRITE THE JOURNAL ENTRY ON
YOUR SOLUTION ATTACHMENT *
Your answer

Use the following problem to solve for the COST OF SALES *


Your answer

Compute for the GROSS SALES under the accrual basis of accounting: *
Your answer

REMINDER: PLEASE DON'T FORGET TO UPLOAD AND TURN IN YOUR


SOLUTIONS IN THE GOOGLE FORM. Otherwise, scores in the long problems will be
invalidated. Thank you and Godbless! 😊😊 *

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy