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