Full Test Bank For Auditing & Assurance Services, 8th Edition ISBN10:
c c c c c c c c c c c
126036920X | ISBN13: 9781260369205
c c c
By Timothy Louwers, Penelope Bagley, Allen Blay, Jerry Strawser, Jay T
c c c c c c c c c c
hibodeau, David Sinason
c c
Student name:
c
MULTIPLEcCHOICEc-
cChoosectheconecalternativecthatcbestccompletescthecstatementcorcanswerscthecquestion.
1) Thecauditcobjectivecthatcallctransactionscandcaccountscthatcshouldcbecpresentedcincthecfi
nancialcstatementscarecincfactcincludedciscrelatedctocwhichcofcthecPCAOBcassertions?
A) Existence.
B) Rightscandcobligations.
C) Completeness.
D) Valuation.
2) Cutoffctestscdesignedctocdetectcpurchasescmadecbeforecthecendcofcthecyearcthatchavecbeencre
cordedcincthecsubsequentcyearcprovidecassurancecaboutcmanagement'scassertioncof:
A) presentationcandcdisclosure.
B) completeness.
C) rightscandcobligations.
D) existence.
3) Duringcancauditcofcancentity'scstockholders'cequitycaccounts,cthecauditorcdeterminescwhethe
rctherecarecrestrictionsconcretainedcearningscresultingcfromcloans,cagreements,corcstateclaw.cThiscaudi
tcprocedurecmostclikelyciscintendedctocverifycmanagement'scassertioncof:
A) existencecorcoccurrence.
B) completeness.
C) valuationcorcallocation.
D) presentationcandcdisclosure.
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,4) Thecconfirmationcofcancaccountcpayablecbalancecselectedcfromcthecgeneralcledgercp
rovidescprimarycevidencecregardingcwhichcmanagementcassertion?
A) Completeness.
B) Valuation.
C) Allocation.
D) Existence.
5) Whatctypecofcevidencecwouldcprovidecthechighestclevelcofcassurancecincancattestationce
ngagement?
A) Evidencecsecuredcsolelycfromcwithincthecentity.
B) Evidencecobtainedcfromcindependentcsources.
C) Evidencecobtainedcindirectly.
D) Evidencecobtainedcfromcmultiplecinternalcinquiries.
6) Whichcofcthecfollowingcmanagementcassertionsciscancauditorcmostclikelyctestingcifctheca
uditcobjectivecstatescthatcallcinventoryconchandciscreflectedcincthecendingcinventorycbalance?
A) Thecentitychascrightsctocthecinventory.
B) Inventoryciscproperlycvalued.
C) Inventoryciscproperlycpresentedcincthecfinancialcstatements.
D) Inventorycisccomplete.
7) Ancauditorctracescthecserialcnumbersconcequipmentctocacnonissuer'scsub-
ledger.cWhichcofcthecfollowingcmanagementcassertionsciscsupportedcbycthisctest?
A) Valuationcandcallocation.
B) Completeness.
C) Rightscandcobligations.
D) Presentationcandcdisclosure.
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,8) Ancauditorchascsubstantialcdoubtcaboutcthecentity'scabilityctoccontinuecascacgoingcconcerncfo
rcacreasonablecperiodcofctimecbecausecofcnegativeccashcflowscandcworkingccapitalcdeficiencies.cUnd
erctheseccircumstances,cthecauditorcwouldcbecmostcconcernedcaboutcthe:
A) controlcenvironmentcfactorscthatcaffectcthecorganizationalcstructure.
B) correlationcofcdetectioncriskcandcinherentcrisk.
C) effectivenesscofcthecentity'scinternalccontrolcactivities.
D) possibleceffectsconcthecentity'scfinancialcstatements.
9) Whichcofcthecfollowingctypescofcauditcevidencecprovidescthec leastcassurancecofcre
liability?
A) Receivablecconfirmationscreceivedcfromcthecclient'sccustomers.
B) Prenumberedcreceivingcreportsccompletedcbycthecclient'scemployees.
C) Priorcmonths'cbankcstatementscobtainedcfromcthecclient.
D) Municipalcpropertyctaxcbillscpreparedcincthecclient'scname.
10) Whichcofcthecfollowingciscacmanagementcassertioncregardingcaccountcbalancescatcthecp
eriodcend?
A) Transactionscandceventscthatchavecbeencrecordedchavecoccurredcandcpertainctocthe
entity.
B) Transactionscandceventschavecbeencrecordedcincthecpropercaccounts.
C) Thecentitycholdscorccontrolscthecrightsctocassets,candcliabilitiescarecobligationscofcthe
entity.
D) Amountscandcothercdatacrelatedctocthectransactionscandceventschavecbeencrecorded
appropriately.
11) Acpractitionerciscengagedctocexpresscancopinionconcmanagement'scassertioncthatcthecsquarecfo
otagecofcacwarehousecofferedcforcsalecisc150,000csquarecfeet.cThecpractitionercshouldcreferctocwhichc
ofcthecfollowingcsourcescforcprofessionalcguidance?
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, A) StatementcofcAuditingcStandards.
B) StatementsconcStandardscforcAttestationcEngagements.
C) StatementsconcStandardscforcAccountingcandcReviewcServices.
D) StatementsconcStandardscforcConsultingcServices.
12) Incauditingctheclong-
termcdebtcaccount,cancauditor'scprocedurescmostclikelycwouldcfocuscprimarilyconcmanagement'sca
ssertioncof:
A) existence.
B) completeness.
C) allocation.
D) rightscandcobligations.
13) Ancauditorcselectedcitemscforctestccountscfromcthecclient'scwarehousecduringcthecphysicalcin
ventorycobservation.cThecauditorcthenctracedcthesectestccountscintocthecdetailedcinventoryclistingcthat
cultimatelycagreedctocthecfinancialcstatements.cThiscprocedurecmostclikelycprovidedcevidencecconce
rningcmanagement'scassertioncof:
A) completeness.
B) valuation.
C) presentationcandcdisclosure.
D) existence.
E) rightscandcobligations.
14) Ancauditorcselectedcitemscfromcthecclient'scdetailedcinventoryclistingc(thatcagreedctocthecfina
ncialcstatements).cDuringcthecphysicalcinventorycobservation,cthecauditorcthencfoundceachcitemcsele
ctedcandccountedcthecnumbercofcunitsconchand.cAssumingcthatcthecamountconchandcwascthecsamecasct
hecamountcincthecclient'scdetailedcinventoryclisting,cthiscprocedurecmostclikelycwouldcprovidecevide
ncecconcerningcmanagement'scassertioncof:
Versionc1 4
c c c c c c c c c c c
126036920X | ISBN13: 9781260369205
c c c
By Timothy Louwers, Penelope Bagley, Allen Blay, Jerry Strawser, Jay T
c c c c c c c c c c
hibodeau, David Sinason
c c
Student name:
c
MULTIPLEcCHOICEc-
cChoosectheconecalternativecthatcbestccompletescthecstatementcorcanswerscthecquestion.
1) Thecauditcobjectivecthatcallctransactionscandcaccountscthatcshouldcbecpresentedcincthecfi
nancialcstatementscarecincfactcincludedciscrelatedctocwhichcofcthecPCAOBcassertions?
A) Existence.
B) Rightscandcobligations.
C) Completeness.
D) Valuation.
2) Cutoffctestscdesignedctocdetectcpurchasescmadecbeforecthecendcofcthecyearcthatchavecbeencre
cordedcincthecsubsequentcyearcprovidecassurancecaboutcmanagement'scassertioncof:
A) presentationcandcdisclosure.
B) completeness.
C) rightscandcobligations.
D) existence.
3) Duringcancauditcofcancentity'scstockholders'cequitycaccounts,cthecauditorcdeterminescwhethe
rctherecarecrestrictionsconcretainedcearningscresultingcfromcloans,cagreements,corcstateclaw.cThiscaudi
tcprocedurecmostclikelyciscintendedctocverifycmanagement'scassertioncof:
A) existencecorcoccurrence.
B) completeness.
C) valuationcorcallocation.
D) presentationcandcdisclosure.
Versionc1 1
,4) Thecconfirmationcofcancaccountcpayablecbalancecselectedcfromcthecgeneralcledgercp
rovidescprimarycevidencecregardingcwhichcmanagementcassertion?
A) Completeness.
B) Valuation.
C) Allocation.
D) Existence.
5) Whatctypecofcevidencecwouldcprovidecthechighestclevelcofcassurancecincancattestationce
ngagement?
A) Evidencecsecuredcsolelycfromcwithincthecentity.
B) Evidencecobtainedcfromcindependentcsources.
C) Evidencecobtainedcindirectly.
D) Evidencecobtainedcfromcmultiplecinternalcinquiries.
6) Whichcofcthecfollowingcmanagementcassertionsciscancauditorcmostclikelyctestingcifctheca
uditcobjectivecstatescthatcallcinventoryconchandciscreflectedcincthecendingcinventorycbalance?
A) Thecentitychascrightsctocthecinventory.
B) Inventoryciscproperlycvalued.
C) Inventoryciscproperlycpresentedcincthecfinancialcstatements.
D) Inventorycisccomplete.
7) Ancauditorctracescthecserialcnumbersconcequipmentctocacnonissuer'scsub-
ledger.cWhichcofcthecfollowingcmanagementcassertionsciscsupportedcbycthisctest?
A) Valuationcandcallocation.
B) Completeness.
C) Rightscandcobligations.
D) Presentationcandcdisclosure.
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,8) Ancauditorchascsubstantialcdoubtcaboutcthecentity'scabilityctoccontinuecascacgoingcconcerncfo
rcacreasonablecperiodcofctimecbecausecofcnegativeccashcflowscandcworkingccapitalcdeficiencies.cUnd
erctheseccircumstances,cthecauditorcwouldcbecmostcconcernedcaboutcthe:
A) controlcenvironmentcfactorscthatcaffectcthecorganizationalcstructure.
B) correlationcofcdetectioncriskcandcinherentcrisk.
C) effectivenesscofcthecentity'scinternalccontrolcactivities.
D) possibleceffectsconcthecentity'scfinancialcstatements.
9) Whichcofcthecfollowingctypescofcauditcevidencecprovidescthec leastcassurancecofcre
liability?
A) Receivablecconfirmationscreceivedcfromcthecclient'sccustomers.
B) Prenumberedcreceivingcreportsccompletedcbycthecclient'scemployees.
C) Priorcmonths'cbankcstatementscobtainedcfromcthecclient.
D) Municipalcpropertyctaxcbillscpreparedcincthecclient'scname.
10) Whichcofcthecfollowingciscacmanagementcassertioncregardingcaccountcbalancescatcthecp
eriodcend?
A) Transactionscandceventscthatchavecbeencrecordedchavecoccurredcandcpertainctocthe
entity.
B) Transactionscandceventschavecbeencrecordedcincthecpropercaccounts.
C) Thecentitycholdscorccontrolscthecrightsctocassets,candcliabilitiescarecobligationscofcthe
entity.
D) Amountscandcothercdatacrelatedctocthectransactionscandceventschavecbeencrecorded
appropriately.
11) Acpractitionerciscengagedctocexpresscancopinionconcmanagement'scassertioncthatcthecsquarecfo
otagecofcacwarehousecofferedcforcsalecisc150,000csquarecfeet.cThecpractitionercshouldcreferctocwhichc
ofcthecfollowingcsourcescforcprofessionalcguidance?
Versionc1 3
, A) StatementcofcAuditingcStandards.
B) StatementsconcStandardscforcAttestationcEngagements.
C) StatementsconcStandardscforcAccountingcandcReviewcServices.
D) StatementsconcStandardscforcConsultingcServices.
12) Incauditingctheclong-
termcdebtcaccount,cancauditor'scprocedurescmostclikelycwouldcfocuscprimarilyconcmanagement'sca
ssertioncof:
A) existence.
B) completeness.
C) allocation.
D) rightscandcobligations.
13) Ancauditorcselectedcitemscforctestccountscfromcthecclient'scwarehousecduringcthecphysicalcin
ventorycobservation.cThecauditorcthenctracedcthesectestccountscintocthecdetailedcinventoryclistingcthat
cultimatelycagreedctocthecfinancialcstatements.cThiscprocedurecmostclikelycprovidedcevidencecconce
rningcmanagement'scassertioncof:
A) completeness.
B) valuation.
C) presentationcandcdisclosure.
D) existence.
E) rightscandcobligations.
14) Ancauditorcselectedcitemscfromcthecclient'scdetailedcinventoryclistingc(thatcagreedctocthecfina
ncialcstatements).cDuringcthecphysicalcinventorycobservation,cthecauditorcthencfoundceachcitemcsele
ctedcandccountedcthecnumbercofcunitsconchand.cAssumingcthatcthecamountconchandcwascthecsamecasct
hecamountcincthecclient'scdetailedcinventoryclisting,cthiscprocedurecmostclikelycwouldcprovidecevide
ncecconcerningcmanagement'scassertioncof:
Versionc1 4
