ACCT 3222 Test 2 Multiple Choice question with accurate detailed
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answers
The three categories of management assertions are:
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a. journal entries, ledgers, and trial balances
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b. journal entries, account balances, and financial statements
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c. transactions, ledgers, and account balances
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d. classes of transactions, account balances, and presentation and disclosure - ✔✔D
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The assertion related to recording transactions in the correct accounting period is:
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a. accuracy
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b. completeness
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c. cut-off
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d. occurrence - ✔✔C
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A detailed listing of the specific audit procedures to be used to gather evidence for an account is
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called the: ||
a. permanent file
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b. audit strategy
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c. audit program
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d. accounting records - ✔✔C
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The quantity of evidence that an auditor will gather.
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, a. varies with audit risk
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b. is the same for most audits because it has to be appropriate
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c. depends on the size of the audit team
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d. is the same for clients in the same industry - ✔✔A
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Which is generally the most reliable form of evidence?
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a. internally generated evidence from the client's IT system
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b. internally generated evidence based on discussions with upper management
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c. externally generated evidence held by the client
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d. externally generated evidence sent directly to the auditor - ✔✔D
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An external confirmation sent to a bank:
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a. requests information about the bank balances and loan amounts
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b. requests information about interest rates paid on deposits and charged on loans
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c. is relevant to the audit of interest revenue and expense
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d. all of these answer choices are correct - ✔✔D
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When a auditor inspects a tangible asset to support a balance in the client's records, the auditor is
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gathering evidence to support the: || || || ||
a. completeness assertion
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b. existence assertion
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c. valuation and allocation assertion
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d. rights and obligations assertion - ✔✔B
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answers
The three categories of management assertions are:
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a. journal entries, ledgers, and trial balances
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b. journal entries, account balances, and financial statements
|| || || || || || ||
c. transactions, ledgers, and account balances
|| || || || ||
d. classes of transactions, account balances, and presentation and disclosure - ✔✔D
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The assertion related to recording transactions in the correct accounting period is:
|| || || || || || || || || || ||
a. accuracy
||
b. completeness
||
c. cut-off
||
d. occurrence - ✔✔C
|| || ||
A detailed listing of the specific audit procedures to be used to gather evidence for an account is
|| || || || || || || || || || || || || || || || || ||
called the: ||
a. permanent file
|| ||
b. audit strategy
|| ||
c. audit program
|| ||
d. accounting records - ✔✔C
|| || || ||
The quantity of evidence that an auditor will gather.
|| || || || || || || ||
, a. varies with audit risk
|| || || ||
b. is the same for most audits because it has to be appropriate
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c. depends on the size of the audit team
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d. is the same for clients in the same industry - ✔✔A
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Which is generally the most reliable form of evidence?
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a. internally generated evidence from the client's IT system
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b. internally generated evidence based on discussions with upper management
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c. externally generated evidence held by the client
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d. externally generated evidence sent directly to the auditor - ✔✔D
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An external confirmation sent to a bank:
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a. requests information about the bank balances and loan amounts
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b. requests information about interest rates paid on deposits and charged on loans
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c. is relevant to the audit of interest revenue and expense
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d. all of these answer choices are correct - ✔✔D
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When a auditor inspects a tangible asset to support a balance in the client's records, the auditor is
|| || || || || || || || || || || || || || || || || ||
gathering evidence to support the: || || || ||
a. completeness assertion
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b. existence assertion
|| ||
c. valuation and allocation assertion
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d. rights and obligations assertion - ✔✔B
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