BYU ACC 406 AUDITING MIDTERM 1
EXAM WITH CORRECT QUESTIONS
AND ANSWERS 2025
CH 1: Introduction to Assurance and Financial Statement Auditing
The role of auditing - CORRECT-ANSWERSStudy figure 1-1 on p. 7
Assertions about classes of transactions and events for the period under audit: -
CORRECT-ANSWERS• Occurrence
• Completeness
• Authorization
• Accuracy
• Cutoff
• Classification
Assertions about account balances at the period end: - CORRECT-ANSWERS• Existence
• Rights and obligations
• Completeness
,• Valuation and allocation
Assertions about presentation and disclosure: - CORRECT-ANSWERS• Occurrence and
rights and obligations
• Completeness
• Classification and understandability
• Accuracy and valuation
Auditing definition - CORRECT-ANSWERSA systematic process of objectively obtaining
and evaluating evidence regarding assertions about economic actions and events to
ascertain the degree of correspondence between those assertions and established criteria
and communicating the results to interested users
Attestation - CORRECT-ANSWERSoccur when a practitioner is engaged to issue...a report
on subject matter, or an assertion about subject matter, that is the responsibility of
another party
Assurance - CORRECT-ANSWERSIndependent professional services that improve the
quality of information, or its context, for decision makers
, Materiality - CORRECT-ANSWERSA set of financial statements could be misstated
without affecting the judgment of reasonable people
Information is material if omitting it or misstating it could influence decision that users
make on the basis of financial information of a specific reporting entity.
Different opinion on an audit report - CORRECT-ANSWERS- Unqualified
- Qualified
- Adverse
Major phases of an audit: - CORRECT-ANSWERS1. Client acceptance/continuance
2. Preliminary engagement activities
3. Plan the audit
4. Consider and audit internal control
5. Audit business processes and related accounts
6. Complete the audit
7. Evaluate results and issue audit report
EXAM WITH CORRECT QUESTIONS
AND ANSWERS 2025
CH 1: Introduction to Assurance and Financial Statement Auditing
The role of auditing - CORRECT-ANSWERSStudy figure 1-1 on p. 7
Assertions about classes of transactions and events for the period under audit: -
CORRECT-ANSWERS• Occurrence
• Completeness
• Authorization
• Accuracy
• Cutoff
• Classification
Assertions about account balances at the period end: - CORRECT-ANSWERS• Existence
• Rights and obligations
• Completeness
,• Valuation and allocation
Assertions about presentation and disclosure: - CORRECT-ANSWERS• Occurrence and
rights and obligations
• Completeness
• Classification and understandability
• Accuracy and valuation
Auditing definition - CORRECT-ANSWERSA systematic process of objectively obtaining
and evaluating evidence regarding assertions about economic actions and events to
ascertain the degree of correspondence between those assertions and established criteria
and communicating the results to interested users
Attestation - CORRECT-ANSWERSoccur when a practitioner is engaged to issue...a report
on subject matter, or an assertion about subject matter, that is the responsibility of
another party
Assurance - CORRECT-ANSWERSIndependent professional services that improve the
quality of information, or its context, for decision makers
, Materiality - CORRECT-ANSWERSA set of financial statements could be misstated
without affecting the judgment of reasonable people
Information is material if omitting it or misstating it could influence decision that users
make on the basis of financial information of a specific reporting entity.
Different opinion on an audit report - CORRECT-ANSWERS- Unqualified
- Qualified
- Adverse
Major phases of an audit: - CORRECT-ANSWERS1. Client acceptance/continuance
2. Preliminary engagement activities
3. Plan the audit
4. Consider and audit internal control
5. Audit business processes and related accounts
6. Complete the audit
7. Evaluate results and issue audit report
