Full Test Bank For Auditing & Assurance Services, 8th Edition ISBN10:
b b b b b b b b b b
126036920X | ISBN13: 9781260369205
b b b b
By Timothy Louwers, Penelope Bagley, Allen Blay, Jerry Strawser, Jay
b b b b b b b b b b
Thibodeau, David Sinason
b b
Student name:b
MULTIPLEbCHOICEb-
bChoosebthebonebalternativebthatbbestbcompletesbthebstatementborbanswersbthebquestion.
1) Thebauditbobjectivebthatballbtransactionsbandbaccountsbthatbshouldbbebpresentedbinbthebf
inancialbstatementsbarebinbfactbincludedbisbrelatedbtobwhichbofbthebPCAOBbassertions?
A) Existence.
B) Rightsbandbobligations.
C) Completeness.
D) Valuation.
2) Cutoffbtestsbdesignedbtobdetectbpurchasesbmadebbeforebthebendbofbthebyearbthatbhavebbeenbr
ecordedbinbthebsubsequentbyearbprovidebassurancebaboutbmanagement'sbassertionbof:
A) presentationbandbdisclosure.
B) completeness.
C) rightsbandbobligations.
D) existence.
3) Duringbanbauditbofbanbentity'sbstockholders'bequitybaccounts,bthebauditorbdeterminesbwheth
erbtherebarebrestrictionsbonbretainedbearningsbresultingbfrombloans,bagreements,borbstateblaw.bThisbau
ditbprocedurebmostblikelybisbintendedbtobverifybmanagement'sbassertionbof:
A) existenceborboccurrence.
B) completeness.
C) valuationborballocation.
D) presentationbandbdisclosure.
Versionb1 1
,4) Thebconfirmationbofbanbaccountbpayablebbalancebselectedbfrombthebgeneralbledgerb
providesbprimarybevidencebregardingbwhichbmanagementbassertion?
A) Completeness.
B) Valuation.
C) Allocation.
D) Existence.
5) Whatbtypebofbevidencebwouldbprovidebthebhighestblevelbofbassurancebinbanbattestationbe
ngagement?
A) Evidencebsecuredbsolelybfrombwithinbthebentity.
B) Evidencebobtainedbfrombindependentbsources.
C) Evidencebobtainedbindirectly.
D) Evidencebobtainedbfrombmultiplebinternalbinquiries.
6) Whichbofbthebfollowingbmanagementbassertionsbisbanbauditorbmostblikelybtestingbifbtheba
uditbobjectivebstatesbthatballbinventorybonbhandbisbreflectedbinbthebendingbinventorybbalance?
A) Thebentitybhasbrightsbtobthebinventory.
B) Inventorybisbproperlybvalued.
C) Inventorybisbproperlybpresentedbinbthebfinancialbstatements.
D) Inventorybisbcomplete.
7) Anbauditorbtracesbthebserialbnumbersbonbequipmentbtobabnonissuer'sbsub-
ledger.bWhichbofbthebfollowingbmanagementbassertionsbisbsupportedbbybthisbtest?
A) Valuationbandballocation.
B) Completeness.
C) Rightsbandbobligations.
D) Presentationbandbdisclosure.
Versionb1 2
,8) Anbauditorbhasbsubstantialbdoubtbaboutbthebentity'sbabilitybtobcontinuebasbabgoingbconcernbf
orbabreasonablebperiodbofbtimebbecausebofbnegativebcashbflowsbandbworkingbcapitalbdeficiencies.bU
nderbthesebcircumstances,bthebauditorbwouldbbebmostbconcernedbaboutbthe:
A) controlbenvironmentbfactorsbthatbaffectbtheborganizationalbstructure.
B) correlationbofbdetectionbriskbandbinherentbrisk.
C) effectivenessbofbthebentity'sbinternalbcontrolbactivities.
D) possiblebeffectsbonbthebentity'sbfinancialbstatements.
9) Whichbofbthebfollowingbtypesbofbauditbevidencebprovidesbtheb leastbassurancebofbr
eliability?
A) Receivablebconfirmationsbreceivedbfrombthebclient'sbcustomers.
B) Prenumberedbreceivingbreportsbcompletedbbybthebclient'sbemployees.
C) Priorbmonths'bbankbstatementsbobtainedbfrombthebclient.
D) Municipalbpropertybtaxbbillsbpreparedbinbthebclient'sbname.
10) Whichbofbthebfollowingbisbabmanagementbassertionbregardingbaccountbbalancesbatbtheb
periodbend?
A) Transactionsbandbeventsbthatbhavebbeenbrecordedbhaveboccurredbandbpertainbtobthe
entity.
B) Transactionsbandbeventsbhavebbeenbrecordedbinbthebproperbaccounts.
C) Thebentitybholdsborbcontrolsbthebrightsbtobassets,bandbliabilitiesbarebobligationsbofbthe
entity.
D) Amountsbandbotherbdatabrelatedbtobthebtransactionsbandbeventsbhavebbeenbrecorded
appropriately.
11) Abpractitionerbisbengagedbtobexpressbanbopinionbonbmanagement'sbassertionbthatbthebsquarebf
ootagebofbabwarehousebofferedbforbsalebisb150,000bsquarebfeet.bThebpractitionerbshouldbreferbtobwhic
hbofbthebfollowingbsourcesbforbprofessionalbguidance?
Versionb1 3
, A) StatementbofbAuditingbStandards.
B) StatementsbonbStandardsbforbAttestationbEngagements.
C) StatementsbonbStandardsbforbAccountingbandbReviewbServices.
D) StatementsbonbStandardsbforbConsultingbServices.
12) Inbauditingbtheblong-
termbdebtbaccount,banbauditor'sbproceduresbmostblikelybwouldbfocusbprimarilybonbmanagement'sba
ssertionbof:
A) existence.
B) completeness.
C) allocation.
D) rightsbandbobligations.
13) Anbauditorbselectedbitemsbforbtestbcountsbfrombthebclient'sbwarehousebduringbthebphysicalbin
ventorybobservation.bThebauditorbthenbtracedbthesebtestbcountsbintobthebdetailedbinventoryblistingbtha
tbultimatelybagreedbtobthebfinancialbstatements.bThisbprocedurebmostblikelybprovidedbevidencebconc
erningbmanagement'sbassertionbof:
A) completeness.
B) valuation.
C) presentationbandbdisclosure.
D) existence.
E) rightsbandbobligations.
14) Anbauditorbselectedbitemsbfrombthebclient'sbdetailedbinventoryblistingb(thatbagreedbtobthebfin
ancialbstatements).bDuringbthebphysicalbinventorybobservation,bthebauditorbthenbfoundbeachbitembse
lectedbandbcountedbthebnumberbofbunitsbonbhand.bAssumingbthatbthebamountbonbhandbwasbthebsameb
asbthebamountbinbthebclient'sbdetailedbinventoryblisting,bthisbprocedurebmostblikelybwouldbprovidebev
idencebconcerningbmanagement'sbassertionbof:
Versionb1 4
b b b b b b b b b b
126036920X | ISBN13: 9781260369205
b b b b
By Timothy Louwers, Penelope Bagley, Allen Blay, Jerry Strawser, Jay
b b b b b b b b b b
Thibodeau, David Sinason
b b
Student name:b
MULTIPLEbCHOICEb-
bChoosebthebonebalternativebthatbbestbcompletesbthebstatementborbanswersbthebquestion.
1) Thebauditbobjectivebthatballbtransactionsbandbaccountsbthatbshouldbbebpresentedbinbthebf
inancialbstatementsbarebinbfactbincludedbisbrelatedbtobwhichbofbthebPCAOBbassertions?
A) Existence.
B) Rightsbandbobligations.
C) Completeness.
D) Valuation.
2) Cutoffbtestsbdesignedbtobdetectbpurchasesbmadebbeforebthebendbofbthebyearbthatbhavebbeenbr
ecordedbinbthebsubsequentbyearbprovidebassurancebaboutbmanagement'sbassertionbof:
A) presentationbandbdisclosure.
B) completeness.
C) rightsbandbobligations.
D) existence.
3) Duringbanbauditbofbanbentity'sbstockholders'bequitybaccounts,bthebauditorbdeterminesbwheth
erbtherebarebrestrictionsbonbretainedbearningsbresultingbfrombloans,bagreements,borbstateblaw.bThisbau
ditbprocedurebmostblikelybisbintendedbtobverifybmanagement'sbassertionbof:
A) existenceborboccurrence.
B) completeness.
C) valuationborballocation.
D) presentationbandbdisclosure.
Versionb1 1
,4) Thebconfirmationbofbanbaccountbpayablebbalancebselectedbfrombthebgeneralbledgerb
providesbprimarybevidencebregardingbwhichbmanagementbassertion?
A) Completeness.
B) Valuation.
C) Allocation.
D) Existence.
5) Whatbtypebofbevidencebwouldbprovidebthebhighestblevelbofbassurancebinbanbattestationbe
ngagement?
A) Evidencebsecuredbsolelybfrombwithinbthebentity.
B) Evidencebobtainedbfrombindependentbsources.
C) Evidencebobtainedbindirectly.
D) Evidencebobtainedbfrombmultiplebinternalbinquiries.
6) Whichbofbthebfollowingbmanagementbassertionsbisbanbauditorbmostblikelybtestingbifbtheba
uditbobjectivebstatesbthatballbinventorybonbhandbisbreflectedbinbthebendingbinventorybbalance?
A) Thebentitybhasbrightsbtobthebinventory.
B) Inventorybisbproperlybvalued.
C) Inventorybisbproperlybpresentedbinbthebfinancialbstatements.
D) Inventorybisbcomplete.
7) Anbauditorbtracesbthebserialbnumbersbonbequipmentbtobabnonissuer'sbsub-
ledger.bWhichbofbthebfollowingbmanagementbassertionsbisbsupportedbbybthisbtest?
A) Valuationbandballocation.
B) Completeness.
C) Rightsbandbobligations.
D) Presentationbandbdisclosure.
Versionb1 2
,8) Anbauditorbhasbsubstantialbdoubtbaboutbthebentity'sbabilitybtobcontinuebasbabgoingbconcernbf
orbabreasonablebperiodbofbtimebbecausebofbnegativebcashbflowsbandbworkingbcapitalbdeficiencies.bU
nderbthesebcircumstances,bthebauditorbwouldbbebmostbconcernedbaboutbthe:
A) controlbenvironmentbfactorsbthatbaffectbtheborganizationalbstructure.
B) correlationbofbdetectionbriskbandbinherentbrisk.
C) effectivenessbofbthebentity'sbinternalbcontrolbactivities.
D) possiblebeffectsbonbthebentity'sbfinancialbstatements.
9) Whichbofbthebfollowingbtypesbofbauditbevidencebprovidesbtheb leastbassurancebofbr
eliability?
A) Receivablebconfirmationsbreceivedbfrombthebclient'sbcustomers.
B) Prenumberedbreceivingbreportsbcompletedbbybthebclient'sbemployees.
C) Priorbmonths'bbankbstatementsbobtainedbfrombthebclient.
D) Municipalbpropertybtaxbbillsbpreparedbinbthebclient'sbname.
10) Whichbofbthebfollowingbisbabmanagementbassertionbregardingbaccountbbalancesbatbtheb
periodbend?
A) Transactionsbandbeventsbthatbhavebbeenbrecordedbhaveboccurredbandbpertainbtobthe
entity.
B) Transactionsbandbeventsbhavebbeenbrecordedbinbthebproperbaccounts.
C) Thebentitybholdsborbcontrolsbthebrightsbtobassets,bandbliabilitiesbarebobligationsbofbthe
entity.
D) Amountsbandbotherbdatabrelatedbtobthebtransactionsbandbeventsbhavebbeenbrecorded
appropriately.
11) Abpractitionerbisbengagedbtobexpressbanbopinionbonbmanagement'sbassertionbthatbthebsquarebf
ootagebofbabwarehousebofferedbforbsalebisb150,000bsquarebfeet.bThebpractitionerbshouldbreferbtobwhic
hbofbthebfollowingbsourcesbforbprofessionalbguidance?
Versionb1 3
, A) StatementbofbAuditingbStandards.
B) StatementsbonbStandardsbforbAttestationbEngagements.
C) StatementsbonbStandardsbforbAccountingbandbReviewbServices.
D) StatementsbonbStandardsbforbConsultingbServices.
12) Inbauditingbtheblong-
termbdebtbaccount,banbauditor'sbproceduresbmostblikelybwouldbfocusbprimarilybonbmanagement'sba
ssertionbof:
A) existence.
B) completeness.
C) allocation.
D) rightsbandbobligations.
13) Anbauditorbselectedbitemsbforbtestbcountsbfrombthebclient'sbwarehousebduringbthebphysicalbin
ventorybobservation.bThebauditorbthenbtracedbthesebtestbcountsbintobthebdetailedbinventoryblistingbtha
tbultimatelybagreedbtobthebfinancialbstatements.bThisbprocedurebmostblikelybprovidedbevidencebconc
erningbmanagement'sbassertionbof:
A) completeness.
B) valuation.
C) presentationbandbdisclosure.
D) existence.
E) rightsbandbobligations.
14) Anbauditorbselectedbitemsbfrombthebclient'sbdetailedbinventoryblistingb(thatbagreedbtobthebfin
ancialbstatements).bDuringbthebphysicalbinventorybobservation,bthebauditorbthenbfoundbeachbitembse
lectedbandbcountedbthebnumberbofbunitsbonbhand.bAssumingbthatbthebamountbonbhandbwasbthebsameb
asbthebamountbinbthebclient'sbdetailedbinventoryblisting,bthisbprocedurebmostblikelybwouldbprovidebev
idencebconcerningbmanagement'sbassertionbof:
Versionb1 4
