Test Bank for Auditing & Assurance Services 9th
Edition by Timothy Louwers, Jerry Strawser
Chap 01 9e Answers Included ✅
1)The audit objective that all transactions and accounts that should be
presented in the financial statements are in fact included is related to
which of the PCAOB assertions?
A)Existence
B)Rights and
obligations
C)Completeness
D)Valuation
2)Cutoff tests designed to detect purchases made before the end of the
year that have been recorded in the subsequent year provide assurance
about management's assertion of A)presentation and disclosure.
B)completeness.
C)rights and obligations.
D)existence.
3)During an audit of an entity's stockholders' equity accounts, the auditor
determines whether there are restrictions on retained earnings resulting
from loans, agreements, or state law. This audit procedure most likely is
intended to verify management's assertion of
A)existence or occurrence.
B)completeness.
C)valuation or allocation.
D)presentation and disclosure.
4)The confirmation of an account payable balance selected from the
general ledger provides primary evidence regarding which
management assertion?
A)Completene
ss
B)Valuation
C)Allocation
D)Existence
,1
,5)What type of evidence would provide the highest level of assurance
in an attestation engagement?
A)Evidence secured solely from within
the entity. B)Evidence obtained from
independent sources.
C)Evidence obtained indirectly.
D)Evidence obtained from multiple internal inquiries.
6)Which of the following management assertions is an auditor most likely
testing if the audit objective states that all inventory on hand is
reflected in the ending inventory balance? A)The entity has rights
to the inventory.
B)Inventory is properly valued.
C)Inventory is properly presented in the financial statements.
D)Inventory is complete.
7)An auditor traces the serial numbers on equipment to a nonissuer's
subledger. Which of the following management assertions is supported
by this test?
A)Valuation and
allocation
B)Completeness
C)Rights and obligations
D)Presentation and
disclosure
8)An auditor has substantial doubt about the entity's ability to continue as a
going concern for a reasonable period of time because of negative cash
flows and working capital deficiencies.
Under these circumstances, the auditor would be most
concerned about the A)control environment factors
that affect the organizational structure.
B)correlation of detection risk and inherent risk.
C)effectiveness of the entity's internal control activities.
D)possible effects on the entity's financial statements.
9)Which of the following types of audit evidence provides theleast assurance
of reliability?
A)Receivable confirmations received from the client's
customers. B)Prenumbered receiving reports completed
, by the client's employees. C)Prior months' bank
statements obtained from the client.
D)Municipal property tax bills prepared in the client's name.
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Edition by Timothy Louwers, Jerry Strawser
Chap 01 9e Answers Included ✅
1)The audit objective that all transactions and accounts that should be
presented in the financial statements are in fact included is related to
which of the PCAOB assertions?
A)Existence
B)Rights and
obligations
C)Completeness
D)Valuation
2)Cutoff tests designed to detect purchases made before the end of the
year that have been recorded in the subsequent year provide assurance
about management's assertion of A)presentation and disclosure.
B)completeness.
C)rights and obligations.
D)existence.
3)During an audit of an entity's stockholders' equity accounts, the auditor
determines whether there are restrictions on retained earnings resulting
from loans, agreements, or state law. This audit procedure most likely is
intended to verify management's assertion of
A)existence or occurrence.
B)completeness.
C)valuation or allocation.
D)presentation and disclosure.
4)The confirmation of an account payable balance selected from the
general ledger provides primary evidence regarding which
management assertion?
A)Completene
ss
B)Valuation
C)Allocation
D)Existence
,1
,5)What type of evidence would provide the highest level of assurance
in an attestation engagement?
A)Evidence secured solely from within
the entity. B)Evidence obtained from
independent sources.
C)Evidence obtained indirectly.
D)Evidence obtained from multiple internal inquiries.
6)Which of the following management assertions is an auditor most likely
testing if the audit objective states that all inventory on hand is
reflected in the ending inventory balance? A)The entity has rights
to the inventory.
B)Inventory is properly valued.
C)Inventory is properly presented in the financial statements.
D)Inventory is complete.
7)An auditor traces the serial numbers on equipment to a nonissuer's
subledger. Which of the following management assertions is supported
by this test?
A)Valuation and
allocation
B)Completeness
C)Rights and obligations
D)Presentation and
disclosure
8)An auditor has substantial doubt about the entity's ability to continue as a
going concern for a reasonable period of time because of negative cash
flows and working capital deficiencies.
Under these circumstances, the auditor would be most
concerned about the A)control environment factors
that affect the organizational structure.
B)correlation of detection risk and inherent risk.
C)effectiveness of the entity's internal control activities.
D)possible effects on the entity's financial statements.
9)Which of the following types of audit evidence provides theleast assurance
of reliability?
A)Receivable confirmations received from the client's
customers. B)Prenumbered receiving reports completed
, by the client's employees. C)Prior months' bank
statements obtained from the client.
D)Municipal property tax bills prepared in the client's name.
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