AUDITING - PHILIPPINES 1. Statement 1: Planning - the auditor should make inquiries of management about the possibility of misstatements due to fraud and error. Statement 2: Planning - the auditor should assess the risk that fraud or error may cause the financial statements to contain material misstatements Both statements are false Both statements are true Statement 1 is true None of the above 2. Noncompliance with laws and regulations A. Tax evasion B. Violation of environmental protection laws C. Inside trading of securities D. Error 3. Which of the following statement is true Statement 1: Independence is one of the general standards Statement 2: Professional care is one of the general standards A. Statement 1 is true B. Both statement is false C. Statement 2 is true D. None of the above 4. Which of the following statement is true Statement 1: Technical training is one of the standards of field work Statement 2: GAAP is one of the standard of fieldwork Statement 1 is false Statement 2 is true Statement 2 is false Both statements are false 5. Which of the following statement is false A. Disclosure is one of the standard of reporting. B. Internal control consideration is one of the standards of fieldwork C. Professional care is one of the general standards D. All of the statements are false 6. Management Fraud A. Fraudulent financial reporting B. Employee fraud C. Misappropriation of assets D. None of the above 7. Employee fraud A. Fraudulent financial reporting B. Management Fraud C. Misappropriation of assets D. None of the above 8. Which of the following statement is false Statement 1: Planning - the auditor should make inquiries of management about the possibility of misstatements due to fraud and error. Statement 2: Planning - the auditor should assess the risk that fraud or error may cause the financial statements to contain material misstatements A. Both statements are false B. Both statements are true C. Statement 1 is true D. None of the above