AUDIT AND ASSURANCE 2ND EDITION BY
LEUNG EVALUATION
ET AL ISBN 9781394173440
AUDIT AND ASSURANCE 2ND EDITION BY LEUNG ET AL ISBN 9781394173440 CERTIFICATION
AUDIT AND ASSURANCE 2ND EDITION
LATESTCOMPREHENSIVE
STUDY EXAM SCRIPT
GUIDE ACCURATE COMPLETE QUESTIONS
ANSWERS
VERIFIED SOLUTIONS
CERTIFICATION EVALUATION LATEST
STUDY GUIDE AND ACCURATE ANSWERS
⩥ An "eyes-open" approach of looking for anything unusual that can
raise questions related to evidence that needs to be obtained is called
____________.
Answer: scanning
⩥ Inquiry:
a. generally involves the collection of verbal evidence
b. relates to evidence from independent parties only
c. procedures are generally used in to final stages of the audit
d. is never enough on its own to reach an audit conclusion
Answer: a. generally involves the collection of verbal evidence
d. is never enough on its own to reach an audit conclusion
⩥ Confirmation can provide evidence regarding:
a. valuation
b. cutoff
c. rights and obligations
,d. completeness
e. existence
Answer: a. valuation
b. cutoff
c. rights and obligations
e. existence
⩥ When an auditor compares his or her expectation to a recorded
balance, __________________ __________________ are being
performed.
Answer: analytical procedures
⩥ The collection of verbal evidence from independent parties and
management is the audit procedure known as _______________.
Answer: inquiry
⩥ True or false: One objective of a financial statement audit is to
determine if, in all material respects, the entity being audited is reporting
the one true net income.
Answer: False: a range of potential net income figures is allowable
under both GAAP and IFRS.
⩥ Engagement letters:
a. are only required for new clients
, b. set forth audit objectives
c. define management and auditor responsibilities
d. should not mention fees
e. reduce the risk of misunderstandings
Answer: b. set forth audit objectives
c. define management and auditor responsibilities
e. reduce the risk of misunderstandings
⩥ Confirmation is a representative audit procedure used to test the
PCAOB and ASB assertion of:
a. existence or occurrence
b. presentation and disclosure
c. valuation and allocation
d. rights and obligations
Answer: d. rights and obligations
⩥ The substantive audit plan depends almost exclusively upon the:
a. size of the client
b. risk assessment of the client
c. industry the client is in
d. size of the audit team
Answer: b. risk assessment of the client
LEUNG EVALUATION
ET AL ISBN 9781394173440
AUDIT AND ASSURANCE 2ND EDITION BY LEUNG ET AL ISBN 9781394173440 CERTIFICATION
AUDIT AND ASSURANCE 2ND EDITION
LATESTCOMPREHENSIVE
STUDY EXAM SCRIPT
GUIDE ACCURATE COMPLETE QUESTIONS
ANSWERS
VERIFIED SOLUTIONS
CERTIFICATION EVALUATION LATEST
STUDY GUIDE AND ACCURATE ANSWERS
⩥ An "eyes-open" approach of looking for anything unusual that can
raise questions related to evidence that needs to be obtained is called
____________.
Answer: scanning
⩥ Inquiry:
a. generally involves the collection of verbal evidence
b. relates to evidence from independent parties only
c. procedures are generally used in to final stages of the audit
d. is never enough on its own to reach an audit conclusion
Answer: a. generally involves the collection of verbal evidence
d. is never enough on its own to reach an audit conclusion
⩥ Confirmation can provide evidence regarding:
a. valuation
b. cutoff
c. rights and obligations
,d. completeness
e. existence
Answer: a. valuation
b. cutoff
c. rights and obligations
e. existence
⩥ When an auditor compares his or her expectation to a recorded
balance, __________________ __________________ are being
performed.
Answer: analytical procedures
⩥ The collection of verbal evidence from independent parties and
management is the audit procedure known as _______________.
Answer: inquiry
⩥ True or false: One objective of a financial statement audit is to
determine if, in all material respects, the entity being audited is reporting
the one true net income.
Answer: False: a range of potential net income figures is allowable
under both GAAP and IFRS.
⩥ Engagement letters:
a. are only required for new clients
, b. set forth audit objectives
c. define management and auditor responsibilities
d. should not mention fees
e. reduce the risk of misunderstandings
Answer: b. set forth audit objectives
c. define management and auditor responsibilities
e. reduce the risk of misunderstandings
⩥ Confirmation is a representative audit procedure used to test the
PCAOB and ASB assertion of:
a. existence or occurrence
b. presentation and disclosure
c. valuation and allocation
d. rights and obligations
Answer: d. rights and obligations
⩥ The substantive audit plan depends almost exclusively upon the:
a. size of the client
b. risk assessment of the client
c. industry the client is in
d. size of the audit team
Answer: b. risk assessment of the client
