RDC REVIEW SCHOOL OF ACCOUNTANCY

2nd Floor, Dynasty Building, Zamora Street, Tacloban

City
523-8996/ 0939-345-2261
AUDITING THEORY – Quizzer 1 ara albat

1. Which of the following statements best describe assurance services?

a. Independent professional’s services that are intended to enhance
the credibility of information to meet the needs of intended user.
b. Services designed to express an opinion on the fairness of
historical financial statements based on the results on an audit.
c. The preparation of financial statements or the collection,
classification, and summarization of other financial information.
d. Services designed for the improvement of operations, resulting in
better outcomes.
2. Which of the following is not an assurance services?
a. Examination of prospective financial information
b. Audit of historical financial statements
c. Review of financial statements
d. Compilation of financial information
3. Suitable criteria are required for reasonably consistent evaluation or
measurement of the subject matter of an assurance engagement. Which of
the following statements concerning the characteristics of suitable
criteria is correct?
a. Reliable criteria contribute to conclusions that are clear,
comprehensive, and not subject to significantly different
interpretations.
b. Relevant criteria allow reasonably consistent evaluation or
measurement of the subject matter including, where relevant,
presentation and disclosure, when used in similar circumstances by
similarly qualified practitioners.
c. Neutral criteria contribute to conclusions that are free from bias.
d. Criteria are sufficiently complete when they contribute to
conclusions that are clear, comprehensive, and not subject to
different interpretations.
4. In an insurance engagement, the outcome of the evaluation or
measurement of a subject matter against criteria is called
a. Subject matter information
b. Subject matter
c. Assurance
d. Conclusions
5. In some assurance engagement, the evaluation or measurement of the
subject matter information is in the form of an assertion by the
responsible party that is made available to intended users. These
engagements are called
a. Direct reporting engagements
b. Assertion-based engagements
c. Non-assurance engagements
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 d. Recurring engagements
6. Assurance engagement risk is the risk
a. That the practitioner expressing an inappropriate conclusion when
the subject matter information is materially misstated.
b. Of expressing an inappropriate conclusion when the subject matter
information is materially misstated.
c. Through loss from litigation, adverse publicity, or other events
arising in connection with a subject matter reported on.
d. Of expressing an appropriate conclusion when the subject matter
information is either materially misstated or not materially
misstated.
7. After accepting an assurance engagement , a practitioner is not
allowed to change the engagement to non-assurance engagement to a
limited assurance engagement to a limited assurance engagement, except
when there is reasonable justification for the change. Which of the
following ordinarily will justify a request for a change in the
engagement?
I. A change in circumstance that affects the intended users
requirements.
II. A misunderstanding concerning the nature of the engagement.
a. I only
b. II only
c. Both I and II
d. Neither I or II
8. Independence is not a requirement for which of the following
engagements?
Compilation Review Agreed-upon procedures
a. No Yes No
b. No No No
c. Yes No Yes
d. Yes Yes Yes
9. The auditor is required to comply with all PSA’s relevant to the audit
of an entity’s financial statements. A PSA is relevant to the audit
when
I. The PSA is in effect.
II. The circumstances addressed by the PSA exist.
a. I only
b. II only
c. Either I or II
d. Both I and II

10. The overall objectives of the auditor in conducting an audit of

financial statements are:
I. To obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement,
whether caused by fraud or error.
II. To report on the financial statements.
III. To obtain conclusive rather than persuasive evidence.
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 IV. To detect all misstatements, whether due to fraud or error.

11. Which of the following professionals has primary responsibility

for the performance of an audit?
a. The managing partner of the firm.
b. The senior assigned to the engagement.
c. The manager assigned to the engagement.
d. The partner in charge of the engagement.

12. Governmental auditing often extends beyond examinations leading

to the expression of opinion on the fairness of financial presentation
and includes audits of efficiency, economy, effectiveness and also
a. Accuracy
b. Evaluation
c. Compliance
d. Internal Control

13. Internal auditors review the adequacy of the company’s internal

control system primarily to
a. Help determine the nature, timing and extent of tests necessary to
achieve audit objectives.
b. Determine whether the internal control system provides reasonable
assurance that the company’s objectives and goals are met
efficiently and economically.
c. Ensure that material weaknesses in the system of internal control
are corrected.
d. Determine whether the internal control system ensures that
financial statements are fairly presented.
14. Which of the following services, if any, may a practitioner who
is not independent provide?

a. Compilation but not reviews.

b. Reviews but not compilations.
c. Reviews but not financial statement audits.
d. Agreed-upon procedures but not compilations.

15. The following statements relate to the term of office of the

chairman and members of the Board of Accountancy (BOA). Which is
false?
a. The chairman and members of the BOA shall hold office for a term of
three (3) years.
b. Any vacancy occurring within the term of a member shall be filled
up for the unexpired portion of the term only.
c. No person who has served two successive complete terms as chairman
or member shall be eligible for reappointment until the lapse of
two (2) years.
d. Appointment to fill up an unexpired term is not to be considered as
a complete term.
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16. The Board of Accountancy has the power to conduct an oversight
into the quality of audits of financial statements through a review of
the quality control measures instituted by auditors in order to ensure
compliance with the accounting and auditing standards and practices.
a. Quality Assurance review
b. Peer review
c. Appraisal
d. Quality Control

17. Which of the following shall be issued to examinees who pass the
CPA Licensure Examination?
a. Certificate of registration and death certificate.
b. Professional Identification card and warrant of arrest.
c. Certificate of registration and professional identification card.
d. Warrant of arrest and death certificate.

18. Which of the following statements concerning the issuance of

Certificates of Registration and Professional Identification Cards to
successful examinees is correct?
a. The Certificate of Registration issued to successful examinees is
renewable every three (3) years.
b. The Professional Identification Card issued to successful examinees
shall remain in full force and effect until withdrawn, suspended or
revoked in accordance with RA 9298.
c. The BOA shall not register and issue a certificate of registration
and Professional Identification Card to any successful examinee of
unsound mind.
d. The BOA may, after the expiration of three (3) years from the date
of revocation of a Certificate of Registration, reinstate the
validity of a revoked Certificate of Registration.

19. Which of the following statements concerning the use of firm or

partnership name is incorrect?
a. In the case of an individual CPA, he/she shall do business under
his/her registered name with the BOA and the PRC and as printed in
his/her CPA certificate (for example, Cardo Dalisay, CPA)
b. In the case of a firm, it shall do business under its duly
registered and authorized firm name appearing in the registration
documents issued by the Department of Trade and Industry (DTI) and
other government offices and such firm name shall include the real
name of the sole proprietor as printed in his/her CPA certificate
(for example, Erwin Tulfo and Associates).
c. In the case of a registered partnership, it shall do business under
its name as indicated in its current Articles of Partnership and
Certificate of Registration issued by the Securities and Exchange
Commission (SEC) (For Example, Dao, Ming and Si, CPAs)

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 d. A CPA shall practice only under an individual, firm, or partnership
name in accordance with Philippine laws and shall not include
fictitious name but may indicate specialization.

20. A partner surviving the death or withdrawal of all the other

partners in a partnership may continue to practice under the
partnership name for a period of not more than ___ years after
becoming a sole proprietor.
a. 1
b. 2
c. 3
d. 4

21. The death or disability of an individual CPA and/or the

dissolution and liquidation of a firm or partnership of CPAs shall be
reported to the BOA not later than ___ days from the date of such
death, dissolution or liquidation.
a. 15
b. 30
c. 60
d. 90

22. Which of the following statements concerning a CPA’s disclosure

of confidential client information is ordinarily correct?
a. Disclosure may be made to any party on consent of the client.
b. Disclosure should not be made even if such disclosure will protect
the CPA’s professional interests in legal proceedings.
c. Disclosure should be made only if there is a legal or professional
duty to make the disclosure.
d. Disclosure may be made to any government agency without subpoena.

23. The following statements relate to some of the provisions of RA

9298. Which is correct?
a. Audit working papers are generally the property of the company
whose financial statements were audited.
b. After three (3) years, subject to certain conditions, the Board of
Accountancy may order the reinstatement of a CPA whose certificate
of registration has been revoked.
c. The penal provision (Sec. 36) of RA 9298 applies only to the
violation of any of the provisions of RA 9298 because its
Implementing Rules and Regulations are unforceable.
d. It shall be the primary duty of the PRC and the BOA to effectively
enforce the provisions of RA 9298.

24. Which of the following statements best explains why the CPA
profession has found it essential to establish ethical standards and
means for ensuring their observance?

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 a. Vigorous enforcement of an established code of ethics is the best
way to prevent unscrupulous acts.
b. Ethical standards that emphasize excellence in performance over
material rewards establish a reputation for competence and
character.
c. A distinguishing mark of a profession is its acceptance of
responsibility to the public.
d. A requirement for a profession is to establish ethical standards
that stress primarily a responsibility to clients and colleagues.

25. According to Section 240 of the Code of Ethics, fees charged for
assurance engagements should be a fair reflection of the value of the
work involved. In determining professional fees, the following should
be taken into account, except
a. The time necessarily occupied by each person engaged on the work.
b. The outcome or result of a transaction or the result of the work
performed.
c. The skill and knowledge required for the type of work involved.
d. The level of training and experience of the persons necessarily
engaged on the work.

26. In the case of audit engagements, it is in the public interest

and, therefore, required by the Code that members of audit teams,
firms and network firms shall be independent of audit clients.
Independence requires
a. Independence of mind only.
b. Independence in appearance only.
c. Both independence of mind and independence in appearance
d. Either independence of mind or independence in appearance

27. When the professional accountant determines that appropriate

safeguards are not available or cannot be applied to eliminate the
threats to independence or reduce them to an acceptable level; the
professional accountant shall
I. Eliminate the circumstances or relationship creating the threats.
II. Decline or terminate the audit engagement.
a. I only
b. II only
c. Neither I nor II
d. Either I or II

28. When 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
matter information of the assurance engagement, or was in such a
position during the period covered by the engagement, the threats to
independence can only be reduced to an acceptable level by

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 a. Where possible, structuring the responsibilities of the assurance
team so that the professional does not deal with matters that are
within the responsibility of the immediate family member.
b. Withdrawing from the assurance engagement.
c. Removing the individual from the assurance team.\
d. Discussing the issue with those charged with governance, such as
the audit committee.

29. Which of the following are elements of a CPA firm’s quality

control that should be considered in establishing its quality control
policies and procedures?

Ethical Requirmnts Human Resources Engagement Performnce

a. NO YES NO
b. YES NO NO
c. YES YES YES
d. NO NO YES

30. The primary purpose of establishing quality control policies and

procedures for deciding whether to accept a new client is to
a. Anticipate before performing any fieldwork whether an unqualified
opinion can be expressed.
b. Enable the CPA firm to attest to the reliability of the client.
c. Satisfy the CPA firm’s duty to the public concerning the acceptance
of new clients.
d. Minimize the likelihood of association with clients whose
management lacks integrity.

31. Which element of a system of quality control is addressed by the

establishment of policies and procedures designed to provide the firm
with reasonable assurance that it has sufficient personnel with the
competence, capabilities, and commitment to ethical principles?
a. Monitoring
b. Leadership responsibilities for quality within the firm
c. Human resources
d. Engagement Performance

32. For audits of financial statements of listed entities, the

engagement partner should not issue the auditor’s report until the
completion of the
a. Engagement Quality Control Review
b. Management Review
c. Engagement Team Review
d. Engagement Partner Review

33. Who should take responsibility for the overall quality on each
audit engagement?
a. Engagement Quality Control Review
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 b. Engagement Partner
c. Engagement Team
d. CPA Firm

34. The engagement partner should take responsibility for the

direction, supervision and performance of the audit engagement in
compliance with professional standards and regulatory and legal
requirements, and for the auditor’s report that is issued to be
appropriate in the circumstances. Supervision includes the following,
except
a. Tracking the progress of the audit engagement.
b. Addressing significant issues arising during the audit engagement,
considering their significance, and modifying the planned approach
appropriately.
c. Informing the members of the engagement team of their
responsibilities.
d. Identifying matters for consideration or consultation by more
experienced engagement team members during the audit engagement.

35. PSA 220 requires the engagement partner to consider whether

members of the engagement team have complied with the ethical
requirements relating to audit engagements. The Code of Ethics
establishes the fundamental principles of professional ethics, which
include
I. Integrity
II. Objectivity
III. Professional Competence and Due Care
IV. Confidentiality
V. Professional Behavior

a. I, II, IV and V only

b. II, III, IV and V only
c. I, III, IV and V only
d. I, II, III, IV and V

36. Analytical procedures used in planning an audit should focus on

a. Reducing the scope of tests of controls and substantive tests.
b. Providing assurance that potential material misstatements will be
identified.
c. Enhancing the auditor’s understanding of the client’s business and
identifying areas of potential risk.
d. Assessing the adequacy of the available evidential matter.

37. Which of the following would not be considered an analytical

procedure?
a. Estimating payroll expense by multiplying the number of employees
by the average hourly wage rate and the total hours worked.

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 b. Projecting an error rate by comparing the results of a statistical
sample with the actual population characteristics.
c. Computing accounts receivable turnover by dividing credit sales by
the average net receivables.
d. Developing the expected sales based on the sales trend of the prior
5 years.

38. Which of the following is an incorrect statement concerning the

relationship of the internal auditor and the scope of the external
audit of an entity’s financial statements?
a. The external auditor is not required to give consideration to the
internal audit function beyond obtaining a sufficient understanding
to identify and assess the risks of material misstatements of the
financial statements and to design and perform further audit
procedures.
b. The internal auditors may determine the extent to which audit
procedures should be employed by the external auditor.
c. Under certain circumstances, the internal auditors may assist the
external auditor in performing substantive tests and tests of
control.
d. The nature, timing and extent of the external auditor’s substantive
tests may be affected by the work of internal auditors.

39. Which of the following matters should be considered by the

auditor in developing the overall audit strategy?
a. Important characteristics of the entity, its business, its
financial performance and its reporting requirements including
changes since the date of the prior audit.
b. Conditions requiring special attention, such as the existence of
related parties.
c. The setting of materiality levels for audit purposes.
d. All of the above.

40. Because of the risk of material misstatement, an audit of

financial statements in accordance with PSAs should be planned and
performed with an attitude of
a. Impartial conservatism
b. Objective judgment
c. Independent integrity
d. Professional skepticism.

41. Which of the following is a false statement about audit

objectives?
a. There should be a one-to-one relationship between audit objectives
and procedures.
b. Audit objectives should be developed in light of management
assertions about the financial statement components.

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 c. Selection of tests to meet audit objectives should depend upon the
understanding of internal control.
d. The auditor should resolve any substantial doubt about any of
management’s material financial statement assertions.

42. Financial statements of an entity that have been reviewed by an

accountant should be accompanied by a report stating that a review
a. Provides only limited assurance that the financial statements are
fairly presented.
b. Includes examining, on a test basis, information that is the
representation of management.
c. Consists principally of inquiries of company personnel and
analytical procedures applied to financial data.
d. Does not contemplate obtaining corroborating evidential matter or
applying certain other procedures ordinarily performed during an
audit.

43. An accountants report on a review of the financial statements of

an entity should state that the accountant
a. Does not express an opinion or any form of limited assurance on the
financial statements.
b. Conducted the review in accordance with the Philippine Standard on
Review Engagements.
c. Obtained reasonable assurance about whether the financial
statements are free of material misstatements.
d. Examined evidence, on a test basis, supporting the amounts and
disclosures in the financial statements.

44. An accountant who reviews the financial statements of an entity

should issue a report stating that a review
a. Provides less assurance than an audit.
b. Provides negative assurance that internal control is functioning as
designed.
c. Provides only limited assurance that the financial statements are
fairly presented.
d. Is substantially more in scope than a compilation.

45. Which of the following should not be included in an accountant’s

report based upon the compilation of an entity’s financial statements?
a. A statement that a compilation of the company’s financial
statements was made in accordance with the Philippine Standard on
Related Services applicable to compilation engagements.
b. A statement that management is responsible for the financial
statements.
c. A statement that the accountant has not audited or reviewed the
statements.
d. A statement that the accountant does not express an opinion but
provides only negative assurance on the statements.
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46. Negative assurance may be expressed when an accountant is
requested to report agreed-upon procedures to specified

Elements of F/S Accounts of F/S

a. YES YES
b. YES NO
c. NO NO
d. NO YES

47. An accountant may accept an engagement to apply agreed-upon

procedures that are not sufficient to express an opinion on one or
more specified accounts or items of a financial statement provided
that
a. The accountants report does not enumerate the procedures
performed.
b. The financial statements are prepared in accordance with a
comprehensive basis of accounting other than generally accepted
accounting principles.
c. Distribution of the accountant’s report is restricted.
d. The accountant is also the entity’s continuing auditor.

48. A major purpose of the auditor’s report on financial statements

is to
a. Assure investors of the complete accuracy of the financial
statements
b. Enhance the degree of confidence of intended users in the financial
statements
c. Deter creditors from extending loans in high risk situations.
d. Describe the specific auditing procedures undertaken to gather
evidence for the opinion.

49. When compiling the financial statements of an entity, an

accountant should
a. Review agreements with financial institutions for restrictions on
cash balances.
b. Understand the accounting principles and practices of the entity’s
industry.
c. Inquire of key personnel concerning related parties and subsequent
events.
d. Perform ratio analysis of the financial data of comparable prior
periods.

50. Which of the following should not be included in an accountant’s

report based upon the compilation of an entity’s financial statements?
a. A statement that a compilation of the company’s financial
statements was made in accordance with the Philippine Standard on
Related Services 4410 (Revised), Compilation Engagements.

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 b. A statement that the financial statements and the accuracy and
completeness of information used to compile them are management’s
responsibility.
c. A statement that a compilation engagement is an assurance
engagement.
d. A statement that the accountant does not express an audit opinion
or a review conclusion.

51. An auditor’s engagement letter most likely would include a

statement that:
a. Lists potential significant deficiencies discovered during the
prior year’s audit.
b. Explains the analytical procedures that the auditor expects to
apply.
c. Describes the auditor’s responsibility to evaluate going concern
issues.
d. Limits the auditor’s responsibility to detect errors and fraud.

52. In reviewing a company’s financial statements, a practitioner is

required to
a. Send bank confirmations
b. Obtain knowledge of the client’s industry.
c. Obtain a signed engagement letter from the client.
d. Observe client’s physical inventory.

53. Each page of the financial information compiled by the accountant

should include the following reference, except
a. “Unaudited”
b. “Compiled without audit or review”
c. “Refer to compilation report”
d. “Compiled, Negative Assurance Expressed”

54. An auditor may accept an engagement to perform specified

procedures on the specific subject matter of specified elements,
accounts, or items of a financial statement if
a. The report does not list the procedures performed.
b. The financial statements are prepared in accordance with a special
purpose framework.
c. Use of the report is restricted.
d. The auditor is also the entity’s continuing auditor.

55. Professional Judgment

a. Should be exercised in planning and performing an audit of
financial statements but need not be documented.
b. Can be used as the justification for the decisions made by the
auditor that are not supported by the facts and circumstances of
the engagement.

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 c. Is necessary in the evaluation of management’s judgments in
applying the entity’s applicable financial reporting framework.
d. Is not used in making decisions about materiality and audit risk.

56. Independent auditing

a. A branch of accounting
b. A professional activity that measures and communicates financial
and other data.
c. A discipline which attests to the results of accounting and other
functional operations and data.
d. A regulatory function that prevents the issuance of improper
financial information.

57. In conducting an appraisal of the economy and efficiency with

which company resources are used, an internal auditor’s responsibility
is to
a. Verify the accuracy of asset valuation.
b. Review the reliability of operating information.
c. Verify the existence of assets.
d. Determine whether operating standards have been established.

58. Internal auditors should review the means of physically

safeguarding assets from losses arising from
a. Exposure to the elements
b. Underusage of physical facilities.
c. Misapplication of accounting principles.
d. Procedures that are not cost justified.

59. Which of the following are considered consulting services?

Advisory services Transaction srvcs Assurance srvcs

a. No Yes Yes
b. Yes Yes No
c. Yes No Yes
d. Yes Yes Yes

60. The form of communication with a client in a consulting services

engagement should be
a. Either written or oral
b. Written, and a copy should be sent to management alone.
c. Oral, with appropriate documentation in working papers.
d. Written, and copies should be sent to both management and the board
of directors.

61. According to Section 7 of the IRR, no person who has served two
successive complete terms as chairman or member of the Board of
Accountancy shall be eligible for reappointment as chairman or member
until the lapse of
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 a. 1 year
b. 2 years
c. 3 years
d. 4 years

62. According to Section 7 of the IRR, no person shall serve in the

Board of Accountancy for more than
a. 3 years
b. 8 years
c. 10 years
d. 12 years

63. This standard setting body shall have a chairman who had been or
presently a senior accounting practitioner in public accountancy
a. AASC
b. FRSC
c. ACPAE
d. BOA

64. Which of the following is not represented in the AASC?

a. Bangko Sentral ng Pilipinas
b. Board of Accountancy
c. Bureau of Internal Revenue
d. Securities and Exchange Commission

65. Who has the power to suspend/remove the Vice Chairman of the BOA.
a. Chairman of BOA
b. Chairman of FRSC
c. Chairman of PRC
d. President of the Philippines

66. The Board of Accountancy shall submit to the PRC the ratings
obtained by each candidate within how many calendar days after
examination?
a. 2
b. 6
c. 8
d. 10

67. The Certificate of Registration issued to successful examinees

a. Renewable every 3 years
b. Renewable every 5 years
c. Shall remain in full force and effect until withdrawn, suspended or
revoked in accordance with RA 9298
d. Shall bear the signature of the PRC Chairperson and the two PRC
Commissioners.

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68. All registered CPAs shall obtain and use a seal which shall be
circular in form with a smaller circle within bearing the registrant’s
name, registration number and title. Which of the following is
correct?
a. Engraved in the lower portion of the space between the circles is
the CPA’s name.
b. Engraved in the middle of the smaller circle are the letters CPA
c. Engraved in the middle of the smaller circle are the CPA’s name and
registration number.
d. Engraved in the middle of the smaller circle is the CPA’s name.

69. Section 36 (Penal Provision) of RA 9298 states that any person

who shall violate any of the provisions of the Act or any of its
implementing rules and regulations shall, upon conviction, be punished
by
a. A fine of not less than P50,000
b. Imprisonment for a period not exceeding two (2) years
c. A fine of not less than P50,000 or by imprisonment for a period not
exceeding two (2) years.
d. A fine of not less than P50,000 or by imprisonment for a period not
exceeding two (2) years, or both.

70. Listed below are names of four 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 is
a violation of the IRR of RA 9298?
a. Pin, Pon and Pan, CPAs (Pin died about five years ago; Pon and
Pan are continuing the firm)
b. Goe and Gae, CPAs (The name of Gie, a third partner, is omitted
from the partnership name.)
c. Jay and Joy, CPAs (Jay died about three years ago; Joy is
continuing the firm as a sole proprietor.)
d. Lab and Co., CPAs (The firm has ten other partners who are all
CPAs)

71. The operation of the Quality Assurance Review Department (QARD)

of the PICPA shall be supervised by a /an:
a. Executive Committee
b. Supervisory Board
c. Oversight Committee
d. Accountability Board

72. Several sources of GAAP consulted by an auditor are in conflict

as to the application of an accounting principle. Which of the
following should the auditor consider the most authoritative?
a. FASB Technical Bulletins.
b. AICPA Accounting Interpretations.
c. FASB Statements of Financial Accounting Concepts.
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 d. AICPA Technical Practice Aids.

73. For an entity's financial statements to be presented fairly in

conformity with generally accepted accounting principles, the
principles selected should:
a. Be applied on a basis consistent with those followed in the prior
year.
b. Be approved by the Auditing Standards Board or the appropriate
industry subcommittee.
c. Reflect transactions in a manner that presents the financial
statements within a range of acceptable limits.
d. Match the principles used by most other entities within the
entity's particular industry.

74. Which of the following provides the most authoritative guidance

for an auditor?
a. An AICPA audit and accounting guide that provides specific guidance
with respect to the accounting practices in the client's industry.
b. A Journal of Accountancy article discussing implementation of a new
standard.
c. General guidance provided by a Statement on Auditing Standards.
d. Specific guidance provided by an interpretation of a Statement on
Auditing Standards.

75. The third general standard states that due care is to be

exercised in the performance of an audit. This standard is ordinarily
interpreted to require:
a. Thorough review of the existing safeguards over access to assets
and records.
b. Limited review of the indications of employee fraud and illegal
acts.
c. Objective review of the adequacy of the technical training and
proficiency of firm personnel.
d. Critical review of the judgment exercised at every level of
supervision.

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