Here are the correct answers for your questions:
True/False Questions:
○ A. True – The mining sector contributes to the economy through taxes from
large-scale mining companies.
○ B. True – The mining sector doesn't provide education and health services
directly.
○ A. True – Mining is indeed a process starting from exploration and discovery
through to ore extraction.
○ B. True – The mining life cycle is commonly divided into these stages:
exploration, development, extraction, processing, and mine closure.
○ A. True – Exploration activities include reconnaissance flights, geophysical
surveys, and geochemical studies.
○ B. False – The development phase includes activities like building infrastructure
for mining, not just accommodations for drilling.
○ A. True – Forestry is a natural resource.
○ B. False – Minerals are non-renewable resources, not renewable.
○ A. True – 35 million hectares are deemed possible for metallic minerals in the
Philippines.
○ B. True – The Mines and Geosciences Bureau identifies nine million hectares as
high potential.
○ A. True – The Philippines is a leading producer of minerals like nickel, gold, and
copper.
○ B. True – The Philippines is among the world’s top mineral-rich countries.
○ A. True – The mining industry is a major backbone of the Philippine economy.
○ B. True – The extractive sector significantly contributes to the national economy.
○ A. True – A country’s socio-economic development often depends on its natural
resources.
○ B. False – The Philippines is actually considered rich in mineral resources,
including gold, silver, copper, nickel, and chromite.
○ A. True – Mining activities often have environmental and ecological
consequences.
○ B. True – Mining companies must meet the Environmental Compliance
Certificate to address environmental sustainability.
2.
● A. True – Auditors can rely on actuaries’ work to evaluate the relevance of conclusions
on the market value of mining inventories.
● B. True – The depreciation method of mining assets is based on their estimated useful
life or the expected life of the site, whichever is shorter.
11.
● A. True – According to PFRS 6, exploration and evaluation costs are capitalized as
assets and subject to impairment.
● B. True – Republic Act 7942 regulates the mining industry in the Philippines.
12.
● A. False – Mining represents temporary use of land, not permanent.
● B. False – The life of mining operations is not always indefinite, so the going concern
assumption is periodically assessed.
13.
● A. True – Mineral reserves from exploration are not recognized as assets on the balance
sheet.
● B. True – Mining companies in the Philippines are heavily regulated by the Department
of Environment and Natural Resources (DENR).
14.
● A. True – A risk-based audit of mining companies focuses on accounts such as
exploration costs, equipment, inventories, etc.
● B. False – Mining companies do not just "exchange" to achieve operational objectives.
Multiple Choice Questions:
15.Which of the following is an intangible asset of a mining company?
● c. mining rights
16.Heavy equipment used by mining companies is recorded in the balance sheet:
● d. it is recorded as a long-term asset and depreciated over the life of the asset.
17.All of the following are audit objectives of mining companies, except:
● b. Internal review and audit of CASH
18.All of the following are regulatory requirements of the mining industries except:
● c. Conforms to all the terms and conditions of Republic Act 7492.
19.All of the following are phases of the mining process, except:
● c. Refinery and sale of the extracted mineral.
Let me know if you need further explanations!
