Full Test Bank For Auditing & Assurance Services, 8th Edition ISBN10:
n n n n n n n n n n
n 126036920X | ISBN13: 9781260369205
n n n
By Timothy Louwers, Penelope Bagley, Allen Blay, Jerry Strawser, Jay
n n n n n n n n n n
Thibodeau, David Sinason n n
Student name: n
MULTIPLEnCHOICEn-
nChoosenthenonenalternativenthatnbestncompletesnthenstatementnornanswersnthenquestion.
1) Then audit n objectiven that nallntransactionsn andnaccountsnthatnshould nbenpresented ninnthenf
inancialn statementsn aren inn fact n included n isn related n ton whichn of n then PCAOBn assertions?
A) Existence.
B) Rightsn and n obligations.
C) Completeness.
D) Valuation.
2) Cutoff ntestsndesigned nton detect npurchasesn madenbeforenthenend nofnthen yearnthatn haven beenn r
ecorded n inn then subsequent n yearn providen assurancen about n management'sn assertionn of:
A) presentationnand n disclosure.
B) completeness.
C) rightsn and n obligations.
D) existence.
3) Duringn ann audit n of nann entity'snstockholders'n equitynaccounts,nthen auditorn determinesn wheth
ern theren aren restrictionsn onnretained n earningsn resultingn fromnloans,n agreements,n ornstatenlaw.nThisn au
dit n proceduren most n likelyn isn intended n ton verifyn management'sn assertionn of:
A) existencen ornoccurrence.
B) completeness.
C) valuationn orn allocation.
D) presentationnand n disclosure.
Versionn1 1
,4) Then confirmationnof nannaccount n payablen balancen selected n fromnthen generaln ledgern
providesn primaryn evidencen regardingn whichn management n assertion?
A) Completeness.
B) Valuation.
C) Allocation.
D) Existence.
5) What n typen of nevidencen would nprovidenthenhighest n levelnof nassurancen innannattestationne
ngagement?
A) Evidencen secured n solelyn fromnwithinn then entity.
B) Evidencen obtained n fromnindependent n sources.
C) Evidencen obtained n indirectly.
D) Evidencen obtained n fromnmultiplen internaln inquiries.
6) Whichnof nthen followingn management n assertionsn isn annauditornmost n likelyntestingn ifnthena
udit n objectiven statesn that n alln inventorynonn hand n isn reflected n inn then endingn inventorynbalance?
A) Then entitynhasn rightsn ton then inventory.
B) Inventoryn isn properlyn valued.
C) Inventorynisn properlyn presented n inn then financialnstatements.
D) Inventoryn isn complete.
7) Ann auditorn tracesn then serialn numbersn onn equipment n ton an nonissuer'sn sub-
ledger.n Whichn of n then followingn management n assertionsn isn supported n byn thisn test?
A) Valuationnand n allocation.
B) Completeness.
C) Rightsn and n obligations.
D) Presentationnand n disclosure.
Versionn1 2
,8) Ann auditorn hasn substantialndoubtn about nthen entity'sn abilitynton continuen asn an goingn concernnf
orn an reasonablen period n of ntimen becausen of nnegativen cashnflowsn andn workingn capitalndeficiencies.n U
ndern thesen circumstances,n then auditorn would n ben most n concerned n about n the:
A) controlnenvironment n factorsnthat n affect n then organizationalnstructure.
B) correlationnof ndetectionnriskn and n inherent n risk.
C) effectivenessn of nthen entity'sn internalncontrolnactivities.
D) possiblen effectsn onnthen entity'sn financialn statements.
9) Whichn of nthen followingn typesn ofnaudit nevidencenprovidesn then leastnassurancen of n r
eliability?
A) Receivablen confirmationsn received n fromnthen client'sn customers.
B) Prenumbered n receivingn reportsn completed n byn then client'sn employees.
C) Priorn months'n bankn statementsnobtained n fromnthen client.
D) Municipalnpropertyntaxn billsn prepared n inn then client'sn name.
10) Whichnof nthen followingn isn an management n assertionnregardingn account n balancesn at n then
period n end?
A) Transactionsn and n eventsn that n haven beenn recorded n haven occurred n and n pertainn ton the
entity.
B) Transactionsn and n eventsn haven beenn recorded n inn then propern accounts.
C) Then entityn holdsn orn controlsn then rightsn ton assets,n and n liabilitiesn aren obligationsn of nthe
entity.
D) Amountsn and n othern datan related n ton then transactionsn and n eventsn haven beenn recorded
appropriately.
11) A npractitionern isn engaged n ton expressn annopinionnonnmanagement'sn assertionn that nthensquaren f
ootagen of n an warehousen offered nfornsalen isn 150,000n squaren feet.nThen practitionern should n refern tonwhic
hn of n then followingn sourcesn forn professionaln guidance?
Versionn1 3
, A) Statementn ofn Auditingn Standards.
B) Statementsn onn Standardsn forn Attestationn Engagements.
C) Statementsn onn Standardsn forn Accountingn andnReviewnServices.
D) Statementsn onn Standardsn forn Consultingn Services.
12) Innauditingn then long-
termndebt n account,n annauditor'snproceduresnmost n likelynwould nfocusn primarilyn onn management'sn a
ssertionn of:
A) existence.
B) completeness.
C) allocation.
D) rightsn and n obligations.
13) Ann auditorn selected nitemsn forntest ncountsnfromnthenclient'sn warehousen duringn thenphysicaln in
ventorynobservation.n Then auditorn thenntraced nthesen test ncountsnintonthendetailed n inventorynlistingn tha
t n ultimatelyn agreed n ton then financialn statements.n Thisn proceduren most n likelyn providedn evidencen conc
erningn management'sn assertionn of:
A) completeness.
B) valuation.
C) presentationnand n disclosure.
D) existence.
E) rightsn and n obligations.
14) Ann auditorn selected nitemsn fromn then client'sn detailed n inventoryn listingn (thatn agreedn ton then fin
ancialn statements).n Duringn then physicaln inventoryn observation,n then auditornthennfoundneachn itemn se
lected n and n countednthen numbern ofn unitsnonn hand.nAssumingn thatn thenamount n onnhandn wasn then samen
asn then amount n innthenclient'sn detailed n inventorynlisting,n thisnproceduren most nlikelynwould nproviden ev
idencen concerningn management'sn assertionn of:
Versionn1 4
n n n n n n n n n n
n 126036920X | ISBN13: 9781260369205
n n n
By Timothy Louwers, Penelope Bagley, Allen Blay, Jerry Strawser, Jay
n n n n n n n n n n
Thibodeau, David Sinason n n
Student name: n
MULTIPLEnCHOICEn-
nChoosenthenonenalternativenthatnbestncompletesnthenstatementnornanswersnthenquestion.
1) Then audit n objectiven that nallntransactionsn andnaccountsnthatnshould nbenpresented ninnthenf
inancialn statementsn aren inn fact n included n isn related n ton whichn of n then PCAOBn assertions?
A) Existence.
B) Rightsn and n obligations.
C) Completeness.
D) Valuation.
2) Cutoff ntestsndesigned nton detect npurchasesn madenbeforenthenend nofnthen yearnthatn haven beenn r
ecorded n inn then subsequent n yearn providen assurancen about n management'sn assertionn of:
A) presentationnand n disclosure.
B) completeness.
C) rightsn and n obligations.
D) existence.
3) Duringn ann audit n of nann entity'snstockholders'n equitynaccounts,nthen auditorn determinesn wheth
ern theren aren restrictionsn onnretained n earningsn resultingn fromnloans,n agreements,n ornstatenlaw.nThisn au
dit n proceduren most n likelyn isn intended n ton verifyn management'sn assertionn of:
A) existencen ornoccurrence.
B) completeness.
C) valuationn orn allocation.
D) presentationnand n disclosure.
Versionn1 1
,4) Then confirmationnof nannaccount n payablen balancen selected n fromnthen generaln ledgern
providesn primaryn evidencen regardingn whichn management n assertion?
A) Completeness.
B) Valuation.
C) Allocation.
D) Existence.
5) What n typen of nevidencen would nprovidenthenhighest n levelnof nassurancen innannattestationne
ngagement?
A) Evidencen secured n solelyn fromnwithinn then entity.
B) Evidencen obtained n fromnindependent n sources.
C) Evidencen obtained n indirectly.
D) Evidencen obtained n fromnmultiplen internaln inquiries.
6) Whichnof nthen followingn management n assertionsn isn annauditornmost n likelyntestingn ifnthena
udit n objectiven statesn that n alln inventorynonn hand n isn reflected n inn then endingn inventorynbalance?
A) Then entitynhasn rightsn ton then inventory.
B) Inventoryn isn properlyn valued.
C) Inventorynisn properlyn presented n inn then financialnstatements.
D) Inventoryn isn complete.
7) Ann auditorn tracesn then serialn numbersn onn equipment n ton an nonissuer'sn sub-
ledger.n Whichn of n then followingn management n assertionsn isn supported n byn thisn test?
A) Valuationnand n allocation.
B) Completeness.
C) Rightsn and n obligations.
D) Presentationnand n disclosure.
Versionn1 2
,8) Ann auditorn hasn substantialndoubtn about nthen entity'sn abilitynton continuen asn an goingn concernnf
orn an reasonablen period n of ntimen becausen of nnegativen cashnflowsn andn workingn capitalndeficiencies.n U
ndern thesen circumstances,n then auditorn would n ben most n concerned n about n the:
A) controlnenvironment n factorsnthat n affect n then organizationalnstructure.
B) correlationnof ndetectionnriskn and n inherent n risk.
C) effectivenessn of nthen entity'sn internalncontrolnactivities.
D) possiblen effectsn onnthen entity'sn financialn statements.
9) Whichn of nthen followingn typesn ofnaudit nevidencenprovidesn then leastnassurancen of n r
eliability?
A) Receivablen confirmationsn received n fromnthen client'sn customers.
B) Prenumbered n receivingn reportsn completed n byn then client'sn employees.
C) Priorn months'n bankn statementsnobtained n fromnthen client.
D) Municipalnpropertyntaxn billsn prepared n inn then client'sn name.
10) Whichnof nthen followingn isn an management n assertionnregardingn account n balancesn at n then
period n end?
A) Transactionsn and n eventsn that n haven beenn recorded n haven occurred n and n pertainn ton the
entity.
B) Transactionsn and n eventsn haven beenn recorded n inn then propern accounts.
C) Then entityn holdsn orn controlsn then rightsn ton assets,n and n liabilitiesn aren obligationsn of nthe
entity.
D) Amountsn and n othern datan related n ton then transactionsn and n eventsn haven beenn recorded
appropriately.
11) A npractitionern isn engaged n ton expressn annopinionnonnmanagement'sn assertionn that nthensquaren f
ootagen of n an warehousen offered nfornsalen isn 150,000n squaren feet.nThen practitionern should n refern tonwhic
hn of n then followingn sourcesn forn professionaln guidance?
Versionn1 3
, A) Statementn ofn Auditingn Standards.
B) Statementsn onn Standardsn forn Attestationn Engagements.
C) Statementsn onn Standardsn forn Accountingn andnReviewnServices.
D) Statementsn onn Standardsn forn Consultingn Services.
12) Innauditingn then long-
termndebt n account,n annauditor'snproceduresnmost n likelynwould nfocusn primarilyn onn management'sn a
ssertionn of:
A) existence.
B) completeness.
C) allocation.
D) rightsn and n obligations.
13) Ann auditorn selected nitemsn forntest ncountsnfromnthenclient'sn warehousen duringn thenphysicaln in
ventorynobservation.n Then auditorn thenntraced nthesen test ncountsnintonthendetailed n inventorynlistingn tha
t n ultimatelyn agreed n ton then financialn statements.n Thisn proceduren most n likelyn providedn evidencen conc
erningn management'sn assertionn of:
A) completeness.
B) valuation.
C) presentationnand n disclosure.
D) existence.
E) rightsn and n obligations.
14) Ann auditorn selected nitemsn fromn then client'sn detailed n inventoryn listingn (thatn agreedn ton then fin
ancialn statements).n Duringn then physicaln inventoryn observation,n then auditornthennfoundneachn itemn se
lected n and n countednthen numbern ofn unitsnonn hand.nAssumingn thatn thenamount n onnhandn wasn then samen
asn then amount n innthenclient'sn detailed n inventorynlisting,n thisnproceduren most nlikelynwould nproviden ev
idencen concerningn management'sn assertionn of:
Versionn1 4
