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TABLE OF CONTENTS
1. Auditing and Assurance Services
2. Professional Standards
3. Engagement Planning;
4. Management Fraud and Audit Risk
5. Risk Assessment: Internal Control Evaluation
6. Employee Fraud and the Audit of Cash
7. Revenue and Collection Cycle
8. Acquisition and Expenditure Cycle;
9. Production Cycle;
10. Finance and Investment Cycle
11. Completing the Audit
12. Reports on Audited Financial Statements
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1. Auditing and Assurance Services
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question.
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.
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4) The confirmation of an account payable balance selected from the general ledger
provides primary evidence regarding which management assertion?
A) Completeness.
B) Valuation.
C) Allocation.
D) Existence.
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 sub-ledger. 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.
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TABLE OF CONTENTS
1. Auditing and Assurance Services
2. Professional Standards
3. Engagement Planning;
4. Management Fraud and Audit Risk
5. Risk Assessment: Internal Control Evaluation
6. Employee Fraud and the Audit of Cash
7. Revenue and Collection Cycle
8. Acquisition and Expenditure Cycle;
9. Production Cycle;
10. Finance and Investment Cycle
11. Completing the Audit
12. Reports on Audited Financial Statements
Version 1 2
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, Stuvia.com - The Marketplace to Buy and Sell your Study Material
1. Auditing and Assurance Services
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question.
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.
Version 1 3
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4) The confirmation of an account payable balance selected from the general ledger
provides primary evidence regarding which management assertion?
A) Completeness.
B) Valuation.
C) Allocation.
D) Existence.
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 sub-ledger. 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.
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