Auditing & Assurance Services – 9th Edition by Timothy Louwers & Jerry Strawser | Full Test Bank All Chapters | 2025 Verified SolutionsThis document contains the full test bank for Auditing & Assurance Services (9th Edition) by Timothy Louwers and Jerry S

Test Bank for Auditing & Assurance Services 9th Edition by Timothy
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Louwers, Jerry Strawser
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Chap4701479 Answers47Included
e
1) The47audit47objective47that47all47transactions47and47accounts47that47should47be47presented47in47th
e47financial47statements47are47in47fact47included47is47related47to47which47of47the47PCAOB47asser
tions?
A) Existence
B) Rights47and47obligations
C) Completeness
D) Valuation



2) Cutoff47tests47designed47to47detect47purchases47made47before47the47end47of47the47year47that
have47been47recorded47in47the47subsequent47year47provide47assurance47about47managem
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ent's47assertion47of
A) presentation47and47disclosure.
B) completeness.
C) rights47and47obligations.
D) existence.



3) During47an47audit47of47an47entity's47stockholders'47equity47accounts,47the47auditor47determines4
7whether47there47are47restrictions47on47retained47earnings47resulting47from47loans,47agreements,4
7or47state47law.47This47audit47procedure47most47likely47is47intended47to47verify47management's47

assertion47of
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, A) existence47or47occurrence.
B) completeness.
C) valuation47or47allocation.
D) presentation47and47disclosure.


4) The47confirmation47of47an47account47payable47balance47selected47from47the47general47ledger4
7provides47primary47evidence47regarding47which47management47assertion?
A) Completeness
B) Valuation
C) Allocation
D) Existence




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,5) What47type47of47evidence47would47provide47the47highest47level47of47assurance47in47an47
attestation47engagement?
A) Evidence47secured47solely47from47within47the47entity.
B) Evidence47obtained47from47independent47sources.
C) Evidence47obtained47indirectly.
D) Evidence47obtained47from47multiple47internal47inquiries.



6) Which47of47the47following47management47assertions47is47an47auditor47most47likely47testing47if
the47audit47objective47states47that47all47inventory47on47hand47is47reflected47in47the47ending47i
47

nventory47balance?
A) The47entity47has47rights47to47the47inventory.
B) Inventory47is47properly47valued.
C) Inventory47is47properly47presented47in47the47financial47statements.
D) Inventory47is47complete.



7) An47auditor47traces47the47serial47numbers47on47equipment47to47a47nonissuer's47subledger.47Wh
ich47of47the47following47management47assertions47is47supported47by47this47test?
A) Valuation47and47allocation
B) Completeness
C) Rights47and47obligations
D) Presentation47and47disclosure



8) An47auditor47has47substantial47doubt47about47the47entity's47ability47to47continue47as47a47going47c
oncern47for47a47reasonable47period47of47time47because47of47negative47cash47flows47and47workin
g47capital47deficiencies.47Under47these47circumstances,47the47auditor47would47be47most47concer
ned47about47the
A) control47environment47factors47that47affect47the47organizational47structure.
B) correlation47of47detection47risk47and47inherent47risk.
C) effectiveness47of47the47entity's47internal47control47activities.
D) possible47effects47on47the47entity's47financial47statements.



9) Which47of47the47following47types47of47audit47evidence47provides47theleast47assurance47of47reliability?
A) Receivable47confirmations47received47from47the47client's47customers.
B) Prenumbered47receiving47reports47completed47by47the47client's47employees.
C) Prior47months'47bank47statements47obtained47from47the47client.
D) Municipal47property47tax47bills47prepared47in47the47client's47name.




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, 10) Which47of47the47following47is47a47management47assertion47regarding47account47balances47at47t
he47period47end?
A) Transactions47and47events47that47have47been47recorded47have47occurred47and47perta
in47to47the47entity.
B) Transactions47and47events47have47been47recorded47in47the47proper47accounts.
C) The47entity47holds47or47controls47the47rights47to47assets,47and47liabilities47are47obligati
ons47of47the47entity.
D) Amounts47and47other47data47related47to47the47transactions47and47events47have47been4
7recorded47appropriately.




11) A47practitioner47is47engaged47to47express47an47opinion47on47management's47assertion47that47th
e47square47footage47of47a47warehouse47offered47for47sale47is47150,00047square47feet.47The47prac
titioner47should47refer47to47which47of47the47following47sources47for47professional47guidance?
A) Statement47of47Auditing47Standards.
B) Statements47on47Standards47for47Attestation47Engagements.
C) Statements47on47Standards47for47Accounting47and47Review47Services.
D) Statements47on47Standards47for47Consulting47Services.



12) In47auditing47the47long-
term47debt47account,47an47auditor's47procedures47most47likely47would47focus47primarily47o
n47management's47assertion47of
A) existence.
B) completeness.
C) allocation.
D) rights47and47obligations.



13) An47auditor47selected47items47for47test47counts47from47the47client's47warehouse47during47the47ph
ysical47inventory47observation.47The47auditor47then47traced47these47test47counts47into47the47deta
iled47inventory47listing47that47ultimately47agreed47to47the47financial47statements.47This47procedu
re47most47likely47provided47evidence47concerning47management's47assertion47of
A) completeness.
B) valuation.
C) presentation47and47disclosure.
D) existence.
E) rights47and47obligations.




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