Full Test Bank For Auditing & Assurance Services, 8th Edition ISBN1
m m m m m m m m m m
0: 126036920X | ISBN13: 9781260369205
m m m m
By Timothy Louwers, Penelope Bagley, Allen Blay, Jerry Strawser, Ja
m m m m m m m m m
y Thibodeau, David Sinason
m m m
Student name: m
MULTIPLEmCHOICEm-
mChoosemthemonemalternativemthatmbestmcompletesmthemstatementmormanswersmthemquestion.
1) Themaudit mobjectivemthat mallmtransactionsmand maccountsmthat mshould mbempresented minmt
hemfinancialmstatementsmareminmfact mincluded mismrelated mtomwhichmof mthemPCAOBmassertions?
A) Existence.
B) Rightsmand mobligations.
C) Completeness.
D) Valuation.
2) Cutoff mtestsmdesigned mtomdetectmpurchasesmmadembeforemthemend mof mthemyearmthatmhavembe
enmrecorded minmthemsubsequent myearmprovidemassurancemabout mmanagement'smassertionmof:
A) presentationmand mdisclosure.
B) completeness.
C) rightsmand mobligations.
D) existence.
3) Duringmanmaudit mof manmentity'smstockholders'mequitymaccounts,mthemauditormdeterminesmwh
ethermtheremaremrestrictionsmonmretained mearningsmresultingmfrommloans,m agreements,mormstatemlaw.m
Thismaudit mproceduremmost mlikelymismintended mtomverifymmanagement'smassertionmof:
A) existencemormoccurrence.
B) completeness.
C) valuationmormallocation.
D) presentationmand mdisclosure.
Versionm1 1
,4) Themconfirmationmof manmaccount mpayablembalancemselected mfrommthemgeneralmledg
ermprovidesmprimarymevidencemregardingmwhichmmanagement massertion?
A) Completeness.
B) Valuation.
C) Allocation.
D) Existence.
5) What mtypemof mevidencemwould mprovidemthemhighest mlevelmof massuranceminmanmattestati
onmengagement?
A) Evidencemsecured msolelymfrommwithinmthementity.
B) Evidencemobtained mfrommindependent msources.
C) Evidencemobtained mindirectly.
D) Evidencemobtained mfrommmultipleminternalminquiries.
6) Whichmof mthemfollowingmmanagement massertionsmismanmauditormmost mlikelymtestingmif mt
hemaudit mobjectivemstatesmthat mallminventorymonmhand mismreflected minmthemendingminventorymbal
ance?
A) Thementitymhasmrightsmtomtheminventory.
B) Inventorymismproperlymvalued.
C) Inventorymismproperlympresented minmthemfinancialmstatements.
D) Inventorymismcomplete.
7) Anmauditormtracesmthemserialmnumbersmonmequipment mtomamnonissuer'smsub-
ledger.mWhichmof mthemfollowingmmanagement massertionsmismsupported mbymthismtest?
A) Valuationmand mallocation.
B) Completeness.
C) Rightsmand mobligations.
D) Presentationmand mdisclosure.
Versionm1 2
,8) Anmauditormhasmsubstantial mdoubt mabout mthementity'smabilitymtomcontinuemasmamgoingmconce
rnmformamreasonablemperiod mof mtimembecausemof mnegativemcashmflowsmand mworkingmcapital mdeficie
ncies.mUndermthesemcircumstances,mthemauditormwould mbemmost mconcerned mabout mthe:
A) controlmenvironment mfactorsmthat maffect mthemorganizationalmstructure.
B) correlationmof mdetectionmriskmand minherent mrisk.
C) effectivenessmof mthementity'sminternalmcontrolmactivities.
D) possiblemeffectsmonmthementity'smfinancialmstatements.
9) Whichmof mthemfollowingmtypesmof maudit mevidencemprovidesmthem leastmassurancem
of mreliability?
A) Receivablemconfirmationsmreceived mfrommthemclient'smcustomers.
B) Prenumbered mreceivingmreportsmcompleted mbymthemclient'smemployees.
C) Priormmonths'mbankmstatementsmobtained mfrommthemclient.
D) Municipalmpropertymtaxmbillsmprepared minmthemclient'smname.
10) Whichmof mthemfollowingmismammanagement massertionmregardingmaccount mbalancesmat mt
hemperiod mend?
A) Transactionsmand meventsmthat mhavembeenmrecorded mhavemoccurred mand mpertainmtomthe
entity.
B) Transactionsmand meventsmhavembeenmrecorded minmthempropermaccounts.
C) Thementitymholdsmormcontrolsmthemrightsmtomassets,mand mliabilitiesmaremobligationsmof mthe
entity.
D) Amountsmand mothermdatamrelated mtomthemtransactionsmand meventsmhavembeenmrecorded
appropriately.
11) A mpractitionermismengaged mtomexpressmanmopinionmonmmanagement'smassertionmthat mthemsqua
remfootagemof mamwarehousemoffered mformsalemism150,000msquaremfeet.mThempractitionermshould mrefer
mtomwhichmof mthemfollowingmsourcesmformprofessionalmguidance?
Versionm1 3
, A) StatementmofmAuditingmStandards.
B) StatementsmonmStandardsmformAttestationmEngagements.
C) StatementsmonmStandardsmformAccountingmandmReviewmServices.
D) StatementsmonmStandardsmformConsultingmServices.
12) Inmauditingmthemlong-
termmdebt maccount,manmauditor'smproceduresmmost mlikelymwould mfocusmprimarilymonmmanagemen
t'smassertionmof:
A) existence.
B) completeness.
C) allocation.
D) rightsmand mobligations.
13) Anmauditormselected mitemsmformtest mcountsmfrommthemclient'smwarehousemduringmthemphysic
alminventorymobservation.mThemauditormthenmtraced mthesemtest mcountsmintomthemdetailed minventorymli
stingmthat multimatelymagreed mtomthemfinancialmstatements.mThismproceduremmost mlikelymprovided me
videncemconcerningmmanagement'smassertionmof:
A) completeness.
B) valuation.
C) presentationmand mdisclosure.
D) existence.
E) rightsmand mobligations.
14) Anmauditormselected mitemsmfrommthemclient'smdetailed minventorymlistingm(that magreed mtomthe
mfinancialmstatements).mDuringmthemphysicalminventorymobservation,mthemauditormthenmfound meachm
itemmselected mand mcounted mthemnumbermof munitsmonmhand.mAssumingmthat mthemamount monmhand mw
asmthemsamemasmthemamount minmthemclient'smdetailed minventorymlisting,mthismproceduremmost mlikelym
would mprovidemevidencemconcerningmmanagement'smassertionmof:
Versionm1 4
m m m m m m m m m m
0: 126036920X | ISBN13: 9781260369205
m m m m
By Timothy Louwers, Penelope Bagley, Allen Blay, Jerry Strawser, Ja
m m m m m m m m m
y Thibodeau, David Sinason
m m m
Student name: m
MULTIPLEmCHOICEm-
mChoosemthemonemalternativemthatmbestmcompletesmthemstatementmormanswersmthemquestion.
1) Themaudit mobjectivemthat mallmtransactionsmand maccountsmthat mshould mbempresented minmt
hemfinancialmstatementsmareminmfact mincluded mismrelated mtomwhichmof mthemPCAOBmassertions?
A) Existence.
B) Rightsmand mobligations.
C) Completeness.
D) Valuation.
2) Cutoff mtestsmdesigned mtomdetectmpurchasesmmadembeforemthemend mof mthemyearmthatmhavembe
enmrecorded minmthemsubsequent myearmprovidemassurancemabout mmanagement'smassertionmof:
A) presentationmand mdisclosure.
B) completeness.
C) rightsmand mobligations.
D) existence.
3) Duringmanmaudit mof manmentity'smstockholders'mequitymaccounts,mthemauditormdeterminesmwh
ethermtheremaremrestrictionsmonmretained mearningsmresultingmfrommloans,m agreements,mormstatemlaw.m
Thismaudit mproceduremmost mlikelymismintended mtomverifymmanagement'smassertionmof:
A) existencemormoccurrence.
B) completeness.
C) valuationmormallocation.
D) presentationmand mdisclosure.
Versionm1 1
,4) Themconfirmationmof manmaccount mpayablembalancemselected mfrommthemgeneralmledg
ermprovidesmprimarymevidencemregardingmwhichmmanagement massertion?
A) Completeness.
B) Valuation.
C) Allocation.
D) Existence.
5) What mtypemof mevidencemwould mprovidemthemhighest mlevelmof massuranceminmanmattestati
onmengagement?
A) Evidencemsecured msolelymfrommwithinmthementity.
B) Evidencemobtained mfrommindependent msources.
C) Evidencemobtained mindirectly.
D) Evidencemobtained mfrommmultipleminternalminquiries.
6) Whichmof mthemfollowingmmanagement massertionsmismanmauditormmost mlikelymtestingmif mt
hemaudit mobjectivemstatesmthat mallminventorymonmhand mismreflected minmthemendingminventorymbal
ance?
A) Thementitymhasmrightsmtomtheminventory.
B) Inventorymismproperlymvalued.
C) Inventorymismproperlympresented minmthemfinancialmstatements.
D) Inventorymismcomplete.
7) Anmauditormtracesmthemserialmnumbersmonmequipment mtomamnonissuer'smsub-
ledger.mWhichmof mthemfollowingmmanagement massertionsmismsupported mbymthismtest?
A) Valuationmand mallocation.
B) Completeness.
C) Rightsmand mobligations.
D) Presentationmand mdisclosure.
Versionm1 2
,8) Anmauditormhasmsubstantial mdoubt mabout mthementity'smabilitymtomcontinuemasmamgoingmconce
rnmformamreasonablemperiod mof mtimembecausemof mnegativemcashmflowsmand mworkingmcapital mdeficie
ncies.mUndermthesemcircumstances,mthemauditormwould mbemmost mconcerned mabout mthe:
A) controlmenvironment mfactorsmthat maffect mthemorganizationalmstructure.
B) correlationmof mdetectionmriskmand minherent mrisk.
C) effectivenessmof mthementity'sminternalmcontrolmactivities.
D) possiblemeffectsmonmthementity'smfinancialmstatements.
9) Whichmof mthemfollowingmtypesmof maudit mevidencemprovidesmthem leastmassurancem
of mreliability?
A) Receivablemconfirmationsmreceived mfrommthemclient'smcustomers.
B) Prenumbered mreceivingmreportsmcompleted mbymthemclient'smemployees.
C) Priormmonths'mbankmstatementsmobtained mfrommthemclient.
D) Municipalmpropertymtaxmbillsmprepared minmthemclient'smname.
10) Whichmof mthemfollowingmismammanagement massertionmregardingmaccount mbalancesmat mt
hemperiod mend?
A) Transactionsmand meventsmthat mhavembeenmrecorded mhavemoccurred mand mpertainmtomthe
entity.
B) Transactionsmand meventsmhavembeenmrecorded minmthempropermaccounts.
C) Thementitymholdsmormcontrolsmthemrightsmtomassets,mand mliabilitiesmaremobligationsmof mthe
entity.
D) Amountsmand mothermdatamrelated mtomthemtransactionsmand meventsmhavembeenmrecorded
appropriately.
11) A mpractitionermismengaged mtomexpressmanmopinionmonmmanagement'smassertionmthat mthemsqua
remfootagemof mamwarehousemoffered mformsalemism150,000msquaremfeet.mThempractitionermshould mrefer
mtomwhichmof mthemfollowingmsourcesmformprofessionalmguidance?
Versionm1 3
, A) StatementmofmAuditingmStandards.
B) StatementsmonmStandardsmformAttestationmEngagements.
C) StatementsmonmStandardsmformAccountingmandmReviewmServices.
D) StatementsmonmStandardsmformConsultingmServices.
12) Inmauditingmthemlong-
termmdebt maccount,manmauditor'smproceduresmmost mlikelymwould mfocusmprimarilymonmmanagemen
t'smassertionmof:
A) existence.
B) completeness.
C) allocation.
D) rightsmand mobligations.
13) Anmauditormselected mitemsmformtest mcountsmfrommthemclient'smwarehousemduringmthemphysic
alminventorymobservation.mThemauditormthenmtraced mthesemtest mcountsmintomthemdetailed minventorymli
stingmthat multimatelymagreed mtomthemfinancialmstatements.mThismproceduremmost mlikelymprovided me
videncemconcerningmmanagement'smassertionmof:
A) completeness.
B) valuation.
C) presentationmand mdisclosure.
D) existence.
E) rightsmand mobligations.
14) Anmauditormselected mitemsmfrommthemclient'smdetailed minventorymlistingm(that magreed mtomthe
mfinancialmstatements).mDuringmthemphysicalminventorymobservation,mthemauditormthenmfound meachm
itemmselected mand mcounted mthemnumbermof munitsmonmhand.mAssumingmthat mthemamount monmhand mw
asmthemsamemasmthemamount minmthemclient'smdetailed minventorymlisting,mthismproceduremmost mlikelym
would mprovidemevidencemconcerningmmanagement'smassertionmof:
Versionm1 4
