TEST BANK for Auditing & Assurance Services, 5th Edition by Louwers, Bagley, Blay, Strawser

Auditingc&cAssurancecServices:cAcSystematiccApproach,c11ec(Messier)cCh
apterc5c EvidencecandcDocumentation

1) Auditcevidencecincludesconlycwrittencinformationcusedcbycthecauditorcincarrivingcatcancopinioncab
outcthecfairnesscofcfinancialcstatements.

Answer:c FALSEcDif
ficulty:c1cEasy
Topic:c ThecConceptscofcAuditcEvidence
LearningcObjective:c 05-
03cLearncthecbasiccconceptscofcauditcevidence.cBloom's:c Remember
AACSB:c AnalyticalcThinking
AICPA:c BBcCriticalcThinking;cFNcDecisioncMaking

2) Thecauditorcgatherscauditcevidencectoctestcmanagement'scassertions.

Answer:c TRUEcDiffi
culty:c1cEasy
Topic:c ThecRelationshipcofcAuditcEvidencectocthecAuditcReport
LearningcObjective:c 05-
01cUnderstandcthecrelationshipcbetweencauditcevidencecandcthecauditor'screport.
Bloom's:c Rememberc AACSB
:c AnalyticalcThinking
AICPA:c BBcCriticalcThinking;cFNcDecisioncMaking

3) Managementcassertionscfallcintocfourcmainccategories.

Answer:c FALSEcDif
ficulty:c1cEasy
Topic:c ManagementcAssertions
LearningcObjective:c 05-
02cKnowcmanagementcassertionscaboutcclassescofctransactions,caccountcbalances,candcrelatedcdisclo
sures.
Bloom's:c Rememberc AACSB
:c AnalyticalcThinking
AICPA:c BBcCriticalcThinking;cFNcDecisioncMaking




1
Copyrightc2019c©cMcGraw-
HillcEducation.cAllcrightscreserved.cNocreproductioncorcdistributioncwithoutcthecpriorcwrittencconsentcofcMcGraw-
HillcEducation.

,4) Thecclassificationcassertioncrefersctoctransactionscandceventscbeingcrecordedcinctheccorrectca
ccountingcperiod.

Answer:c FALSEcDif
ficulty:c1cEasy
Topic:c ManagementcAssertions
LearningcObjective:c 05-
02cKnowcmanagementcassertionscaboutcclassescofctransactions,caccountcbalances,candcrelatedcdisclo
sures.
Bloom's:c Rememberc AACSB
:c AnalyticalcThinking
AICPA:c BBcCriticalcThinking;cFNcDecisioncMaking

5) Theccompletenesscassertioncrefersctocensuringcthatctransactionscandceventscthatcshouldchavecb
eencrecordedcactuallychavecbeencrecorded.

Answer:c TRUEcDiffi
culty:c1cEasy
Topic:c ManagementcAssertions
LearningcObjective:c 05-
02cKnowcmanagementcassertionscaboutcclassescofctransactions,caccountcbalances,candcrelatedcdisclo
sures.
Bloom's:c Rememberc AACSB
:c AnalyticalcThinking
AICPA:c BBcCriticalcThinking;cFNcDecisioncMaking

6) Theccutoffcassertioncrelatesctocwhetherctransactionscandceventschavecbeencrecordedcincthecc
orrectcaccountingcperiod.

Answer:c TRUEcDiffi
culty:c1cEasy
Topic:c ManagementcAssertions
LearningcObjective:c 05-
02cKnowcmanagementcassertionscaboutcclassescofctransactions,caccountcbalances,candcrelatedcdisclo
sures.
Bloom's:c Rememberc AACSB
:c AnalyticalcThinking
AICPA:c BBcCriticalcThinking;cFNcDecisioncMaking

7) Auditcprocedurescarecdesignedctoctestcmanagementcassertions.

Answer:c TRUEcDiffi
culty:c2cMedium
Topic:c ManagementcAssertions
LearningcObjective:c 05-
02cKnowcmanagementcassertionscaboutcclassescofctransactions,caccountcbalances,candcrelatedcdisclo

2
Copyrightc2019c©cMcGraw-
HillcEducation.cAllcrightscreserved.cNocreproductioncorcdistributioncwithoutcthecpriorcwrittencconsentcofcMcGraw-
HillcEducation.

,sures.
Bloom's:c UnderstandcAACSB
:c AnalyticalcThinking
AICPA:c BBcCriticalcThinking;cFNcRiskcAnalysis




3
Copyrightc2019c©cMcGraw-
HillcEducation.cAllcrightscreserved.cNocreproductioncorcdistributioncwithoutcthecpriorcwrittencconsentcofcMcGraw-
HillcEducation.

, 8) Thecrelevancecofcauditcevidencecorcspecificcauditcprocedurescdependsconcthecassertioncbeingcte
sted.

Answer:c TRUEcDiffi
culty:c1cEasy
Topic:c ThecConceptscofcAuditcEvidence
LearningcObjective:c 05-
03cLearncthecbasiccconceptscofcauditcevidence.cBloom's:c Remember
AACSB:c AnalyticalcThinking
AICPA:c BBcCriticalcThinking;cFNcDecisioncMaking

9) Thecauditorcmustcusechiscorchercprofessionalcjudgmentctocdeterminecthecamountcofcauditce
videncectocbecgathered.

Answer:c TRUEcDiffi
culty:c1cEasy
Topic:c ThecAuditcTestingcHierarchy
LearningcObjective:c 05-
06cUnderstandcthecauditctestingchierarchy.cBloom's:c Remember
AACSB:c AnalyticalcThinking
AICPA:c BBcCriticalcThinking;cFNcDecisioncMaking

10) Thecsufficiencycofcevidencecrefersctocthecqualitycofcauditcevidence.

Answer:c FALSEcDif
ficulty:c1cEasy
Topic:c ThecConceptscofcAuditcEvidence
LearningcObjective:c 05-
03cLearncthecbasiccconceptscofcauditcevidence.cBloom's:c Remember
AACSB:c AnalyticalcThinking
AICPA:c BBcCriticalcThinking;cFNcDecisioncMaking

11) Acconfirmationciscusedcto:
A) verifycthecinventoryccountcisccorrect.
B) verifycthatcaccontrolciscbeingcobserved.
C) verifycacrepresentationcfromcacthirdcparty.
D) verifycthatcacspecificctrendcisccorrect.

Answer:c CcDifficulty
:c1cEasy
Topic:c AuditcProcedurescforcObtainingcAuditcEvidence
LearningcObjective:c 05-
04cKnowcthecauditcprocedurescusedcforcobtainingcauditcevidence.cBloom's:c Understand
AACSB:c AnalyticalcThinking
AICPA:c BBcCriticalcThinking;cFNcDecisioncMaking

4
Copyrightc2019c©cMcGraw-
HillcEducation.cAllcrightscreserved.cNocreproductioncorcdistributioncwithoutcthecpriorcwrittencconsentcofcMcGraw-
HillcEducation.