FullgTestgBankgForgAuditingg&gAssurancegServices,g8thgEditiongISBN10
:g126036920Xg|gISBN13:g9781260369205
BygTimothygLouwers,gPenelopegBagley,gAllengBlay,gJerrygStrawser,gJay
gThibodeau,gDavidgSinason
Studentgname:
MULTIPLEgCHOICEg-
gChoosegthegonegalternativegthatgbestgcompletesgthegstatementgorganswersgthegquestion.
1) Thegauditgobjectivegthatgallgtransactionsgandgaccountsgthatgshouldgbegpresentedgingth
egfinancialgstatementsgaregingfactgincludedgisgrelatedgtogwhichgofgthegPCAOBgassertions?
A) Existence.
B) Rightsgandgobligations.
C) Completeness.
D) Valuation.
2) Cutoffgtestsgdesignedgtogdetectgpurchasesgmadegbeforegthegendgofgthegyeargthatghavegbee
ngrecordedgingthegsubsequentgyeargprovidegassurancegaboutgmanagement'sgassertiongof:
A) presentationgandgdisclosure.
B) completeness.
C) rightsgandgobligations.
D) existence.
3) Duringgangauditgofgangentity'sgstockholders'gequitygaccounts,gthegauditorgdeterminesgwhe
thergtheregaregrestrictionsgongretainedgearningsgresultinggfromgloans,gagreements,gorgstateglaw.gT
hisgauditgproceduregmostglikelygisgintendedgtogverifygmanagement'sgassertiongof:
A) existencegorgoccurrence.
B) completeness.
C) valuationgorgallocation.
D) presentationgandgdisclosure.
Versiong1 1
,4) Thegconfirmationgofgangaccountgpayablegbalancegselectedgfromgtheggeneralgledge
rgprovidesgprimarygevidencegregardinggwhichgmanagementgassertion?
A) Completeness.
B) Valuation.
C) Allocation.
D) Existence.
5) Whatgtypegofgevidencegwouldgprovidegtheghighestglevelgofgassurancegingangattestatio
ngengagement?
A) Evidencegsecuredgsolelygfromgwithingthegentity.
B) Evidencegobtainedgfromgindependentgsources.
C) Evidencegobtainedgindirectly.
D) Evidencegobtainedgfromgmultipleginternalginquiries.
6) Whichgofgthegfollowinggmanagementgassertionsgisgangauditorgmostglikelygtestinggifgth
egauditgobjectivegstatesgthatgallginventorygonghandgisgreflectedgingthegendingginventorygbalan
ce?
A) Thegentityghasgrightsgtogtheginventory.
B) Inventorygisgproperlygvalued.
C) Inventorygisgproperlygpresentedgingthegfinancialgstatements.
D) Inventorygisgcomplete.
7) Angauditorgtracesgthegserialgnumbersgongequipmentgtogagnonissuer'sgsub-
ledger.gWhichgofgthegfollowinggmanagementgassertionsgisgsupportedgbygthisgtest?
A) Valuationgandgallocation.
B) Completeness.
C) Rightsgandgobligations.
D) Presentationgandgdisclosure.
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,8) Angauditorghasgsubstantialgdoubtgaboutgthegentity'sgabilitygtogcontinuegasgaggoinggconcer
ngforgagreasonablegperiodgofgtimegbecausegofgnegativegcashgflowsgandgworkinggcapitalgdeficienc
ies.gUndergthesegcircumstances,gthegauditorgwouldgbegmostgconcernedgaboutgthe:
A) controlgenvironmentgfactorsgthatgaffectgthegorganizationalgstructure.
B) correlationgofgdetectiongriskgandginherentgrisk.
C) effectivenessgofgthegentity'sginternalgcontrolgactivities.
D) possiblegeffectsgongthegentity'sgfinancialgstatements.
9) Whichgofgthegfollowinggtypesgofgauditgevidencegprovidesgtheg leastgassurancego
fgreliability?
A) Receivablegconfirmationsgreceivedgfromgthegclient'sgcustomers.
B) Prenumberedgreceivinggreportsgcompletedgbygthegclient'sgemployees.
C) Priorgmonths'gbankgstatementsgobtainedgfromgthegclient.
D) Municipalgpropertygtaxgbillsgpreparedgingthegclient'sgname.
10) Whichgofgthegfollowinggisgagmanagementgassertiongregardinggaccountgbalancesgatgth
egperiodgend?
A) Transactionsgandgeventsgthatghavegbeengrecordedghavegoccurredgandgpertaingtogthe
entity.
B) Transactionsgandgeventsghavegbeengrecordedgingthegpropergaccounts.
C) Thegentitygholdsgorgcontrolsgthegrightsgtogassets,gandgliabilitiesgaregobligationsgofgthe
entity.
D) Amountsgandgothergdatagrelatedgtogthegtransactionsgandgeventsghavegbeengrecorded
appropriately.
11) Agpractitionergisgengagedgtogexpressgangopiniongongmanagement'sgassertiongthatgthegsquar
egfootagegofgagwarehousegofferedgforgsalegisg150,000gsquaregfeet.gThegpractitionergshouldgrefergt
ogwhichgofgthegfollowinggsourcesgforgprofessionalgguidance?
Versiong1 3
, A) StatementgofgAuditinggStandards.
B) StatementsgongStandardsgforgAttestationgEngagements.
C) StatementsgongStandardsgforgAccountinggandgReviewgServices.
D) StatementsgongStandardsgforgConsultinggServices.
12) Ingauditinggtheglong-
termgdebtgaccount,gangauditor'sgproceduresgmostglikelygwouldgfocusgprimarilygongmanagement'
sgassertiongof:
A) existence.
B) completeness.
C) allocation.
D) rightsgandgobligations.
13) Angauditorgselectedgitemsgforgtestgcountsgfromgthegclient'sgwarehousegduringgthegphysical
ginventorygobservation.gThegauditorgthengtracedgthesegtestgcountsgintogthegdetailedginventoryglisti
nggthatgultimatelygagreedgtogthegfinancialgstatements.gThisgproceduregmostglikelygprovidedgevide
ncegconcerninggmanagement'sgassertiongof:
A) completeness.
B) valuation.
C) presentationgandgdisclosure.
D) existence.
E) rightsgandgobligations.
14) Angauditorgselectedgitemsgfromgthegclient'sgdetailedginventoryglistingg(thatgagreedgtogtheg
financialgstatements).gDuringgthegphysicalginventorygobservation,gthegauditorgthengfoundgeachgit
emgselectedgandgcountedgthegnumbergofgunitsgonghand.gAssuminggthatgthegamountgonghandgwasg
thegsamegasgthegamountgingthegclient'sgdetailedginventoryglisting,gthisgproceduregmostglikelygwoul
dgprovidegevidencegconcerninggmanagement'sgassertiongof:
Versiong1 4
:g126036920Xg|gISBN13:g9781260369205
BygTimothygLouwers,gPenelopegBagley,gAllengBlay,gJerrygStrawser,gJay
gThibodeau,gDavidgSinason
Studentgname:
MULTIPLEgCHOICEg-
gChoosegthegonegalternativegthatgbestgcompletesgthegstatementgorganswersgthegquestion.
1) Thegauditgobjectivegthatgallgtransactionsgandgaccountsgthatgshouldgbegpresentedgingth
egfinancialgstatementsgaregingfactgincludedgisgrelatedgtogwhichgofgthegPCAOBgassertions?
A) Existence.
B) Rightsgandgobligations.
C) Completeness.
D) Valuation.
2) Cutoffgtestsgdesignedgtogdetectgpurchasesgmadegbeforegthegendgofgthegyeargthatghavegbee
ngrecordedgingthegsubsequentgyeargprovidegassurancegaboutgmanagement'sgassertiongof:
A) presentationgandgdisclosure.
B) completeness.
C) rightsgandgobligations.
D) existence.
3) Duringgangauditgofgangentity'sgstockholders'gequitygaccounts,gthegauditorgdeterminesgwhe
thergtheregaregrestrictionsgongretainedgearningsgresultinggfromgloans,gagreements,gorgstateglaw.gT
hisgauditgproceduregmostglikelygisgintendedgtogverifygmanagement'sgassertiongof:
A) existencegorgoccurrence.
B) completeness.
C) valuationgorgallocation.
D) presentationgandgdisclosure.
Versiong1 1
,4) Thegconfirmationgofgangaccountgpayablegbalancegselectedgfromgtheggeneralgledge
rgprovidesgprimarygevidencegregardinggwhichgmanagementgassertion?
A) Completeness.
B) Valuation.
C) Allocation.
D) Existence.
5) Whatgtypegofgevidencegwouldgprovidegtheghighestglevelgofgassurancegingangattestatio
ngengagement?
A) Evidencegsecuredgsolelygfromgwithingthegentity.
B) Evidencegobtainedgfromgindependentgsources.
C) Evidencegobtainedgindirectly.
D) Evidencegobtainedgfromgmultipleginternalginquiries.
6) Whichgofgthegfollowinggmanagementgassertionsgisgangauditorgmostglikelygtestinggifgth
egauditgobjectivegstatesgthatgallginventorygonghandgisgreflectedgingthegendingginventorygbalan
ce?
A) Thegentityghasgrightsgtogtheginventory.
B) Inventorygisgproperlygvalued.
C) Inventorygisgproperlygpresentedgingthegfinancialgstatements.
D) Inventorygisgcomplete.
7) Angauditorgtracesgthegserialgnumbersgongequipmentgtogagnonissuer'sgsub-
ledger.gWhichgofgthegfollowinggmanagementgassertionsgisgsupportedgbygthisgtest?
A) Valuationgandgallocation.
B) Completeness.
C) Rightsgandgobligations.
D) Presentationgandgdisclosure.
Versiong1 2
,8) Angauditorghasgsubstantialgdoubtgaboutgthegentity'sgabilitygtogcontinuegasgaggoinggconcer
ngforgagreasonablegperiodgofgtimegbecausegofgnegativegcashgflowsgandgworkinggcapitalgdeficienc
ies.gUndergthesegcircumstances,gthegauditorgwouldgbegmostgconcernedgaboutgthe:
A) controlgenvironmentgfactorsgthatgaffectgthegorganizationalgstructure.
B) correlationgofgdetectiongriskgandginherentgrisk.
C) effectivenessgofgthegentity'sginternalgcontrolgactivities.
D) possiblegeffectsgongthegentity'sgfinancialgstatements.
9) Whichgofgthegfollowinggtypesgofgauditgevidencegprovidesgtheg leastgassurancego
fgreliability?
A) Receivablegconfirmationsgreceivedgfromgthegclient'sgcustomers.
B) Prenumberedgreceivinggreportsgcompletedgbygthegclient'sgemployees.
C) Priorgmonths'gbankgstatementsgobtainedgfromgthegclient.
D) Municipalgpropertygtaxgbillsgpreparedgingthegclient'sgname.
10) Whichgofgthegfollowinggisgagmanagementgassertiongregardinggaccountgbalancesgatgth
egperiodgend?
A) Transactionsgandgeventsgthatghavegbeengrecordedghavegoccurredgandgpertaingtogthe
entity.
B) Transactionsgandgeventsghavegbeengrecordedgingthegpropergaccounts.
C) Thegentitygholdsgorgcontrolsgthegrightsgtogassets,gandgliabilitiesgaregobligationsgofgthe
entity.
D) Amountsgandgothergdatagrelatedgtogthegtransactionsgandgeventsghavegbeengrecorded
appropriately.
11) Agpractitionergisgengagedgtogexpressgangopiniongongmanagement'sgassertiongthatgthegsquar
egfootagegofgagwarehousegofferedgforgsalegisg150,000gsquaregfeet.gThegpractitionergshouldgrefergt
ogwhichgofgthegfollowinggsourcesgforgprofessionalgguidance?
Versiong1 3
, A) StatementgofgAuditinggStandards.
B) StatementsgongStandardsgforgAttestationgEngagements.
C) StatementsgongStandardsgforgAccountinggandgReviewgServices.
D) StatementsgongStandardsgforgConsultinggServices.
12) Ingauditinggtheglong-
termgdebtgaccount,gangauditor'sgproceduresgmostglikelygwouldgfocusgprimarilygongmanagement'
sgassertiongof:
A) existence.
B) completeness.
C) allocation.
D) rightsgandgobligations.
13) Angauditorgselectedgitemsgforgtestgcountsgfromgthegclient'sgwarehousegduringgthegphysical
ginventorygobservation.gThegauditorgthengtracedgthesegtestgcountsgintogthegdetailedginventoryglisti
nggthatgultimatelygagreedgtogthegfinancialgstatements.gThisgproceduregmostglikelygprovidedgevide
ncegconcerninggmanagement'sgassertiongof:
A) completeness.
B) valuation.
C) presentationgandgdisclosure.
D) existence.
E) rightsgandgobligations.
14) Angauditorgselectedgitemsgfromgthegclient'sgdetailedginventoryglistingg(thatgagreedgtogtheg
financialgstatements).gDuringgthegphysicalginventorygobservation,gthegauditorgthengfoundgeachgit
emgselectedgandgcountedgthegnumbergofgunitsgonghand.gAssuminggthatgthegamountgonghandgwasg
thegsamegasgthegamountgingthegclient'sgdetailedginventoryglisting,gthisgproceduregmostglikelygwoul
dgprovidegevidencegconcerninggmanagement'sgassertiongof:
Versiong1 4
