1. QUIZ #2

2. For Numbers 1-3 What are the three basic transaction cycles of a business?

3. For Numbers 4 and 5 Each transaction cycle has subsystems which must be controlled by an entity. What are these two components?

4. Number 6 This pertains to the audit procedure of following an audit trail from the source documents to the financial report.

5. Number 7 This pertains to the audit procedure of following an audit trail from the financial report to the source document.

6. For Numbers 8 and 9 What are the two systems under the CIS environment in terms of how information is processed?

7. Number 10 This pertain to computer files that contain account information such as ledgers and subsidiary files.

8. Number 11 This file contains past transactions that are used for reference purposes

9. Number 12 This flowchart illustrates the relationship among processes and the documents that flow between them

10. Number 13 These flowcharts are used to represent the relationship between the key elements--input sources, programs, and output products--of computer systems

11. Number 14 An independent appraisal function established within an organization to examine and evaluate its activities as a service to the organization

12. For Numbers 15-17 Generally accepted auditing standards (GAAS) are sub-classified into three. What are these three sub- classifications?

13. Number 18 True or False Control risk can be assessed at 0%.

14. Number 19 True or False Detection risk can be assessed at the discretion of the auditor

15. Number 20 True or False The primary contribution of the Committee on Sponsoring Organizations is the creation of the Code of Ethics of Professional Accountants that is adopted by the Philippines currently.