A4.Which of the following is incorrect regarding confidentiality?a.Professional accountants have an obligation to respect the confidentiality of information abouta 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 professionalaccountant and the client or employer.c.Confidentiality should always be observed by a professional accountant unless specificauthority has been given to disclose information or there is a legal or professional duty todisclose.
Polytechnic University of the Philippines College of AccountancyAC 413 Auditing and Assurance Services Part I Final Departmental ExaminationSecond Semester, Academic Year 2007-2008Page2of 6
d.Confidentiality requires that a professional accountant acquiring information in the course ofperforming professional services neither uses nor appear to use that information for personaladvantage or for the advantage of a third party.A5.For assurance engagements provided to clients that are not audit clients, when the assurancereport is expressly restricted for use by identified users, the following should be independent ofthe clientab
A6.If a firm, or a network firm, has a direct financial interest in an audit client of the firm, the self-interest threat created would be so significant no safeguard could reduce the threat to anacceptable level.The action appropriate to permit the firm to perform the engagement would beto
A7.Which statement is incorrect regarding the nature of tests of controls?
SECTION 3 - Professional Competence32. Which of the following is incorrect regarding professional competence?a.Professional accountants may portray themselves as having expertise or experience theydo not possess.b.Professional competence may be divided into two separate phases.c.The attainment of professional competence requires initially a high standard of generaleducation.d.The maintenance of professional competence requires a continuing awareness ofdevelopment in the accountancy profession.
33. Which of the following is the least required in attaining professional competence?
Page6of21SECTION 4 - Confidentiality34. Which of the following is incorrect regarding confidentiality?
35. A professional accountant has a professional duty or right to disclose confidential information ineach of the following, except
SECTION 5 - Tax Practice36. Which of the following is incorrect regarding the professional accountants’ tax practice?a.A professional accountant rendering professional tax services is entitled to put forward thebest position in favor of a client, or an employer.b.Doubt may be resolved in favor of the client or the employer if there is reasonable supportfor the position.c.A professional accountant may hold out to a client or an employer the assurance that thetax return prepared and the tax advice offered are beyond challenge.d.Professional accountants should ensure that the client or the employer are aware of thelimitations attaching to tax advice and services so that they do not misinterpret anexpression of opinion as an assertion of fact.