Full Test Bank For Auditing & Assurance Services, 8th Edition
b b b b b b b b b b
ISBN10: 126036920X | ISBN13: 9781260369205
b b b b b
By Timothy Louwers, Penelope Bagley, Allen Blay, Jerry Strawser, Jay Thibod
b b b b b b b b b b
eau, David Sinason
b b b
MULTIPLEbCHOICEb-
bChoosebthebonebalternativebthatbbestbcompletesbthebstatementborbanswersbthebquestion.b
1) Thebauditbobjectivebthatballbtransactionsbandbaccountsbthatbshouldbbebpresentedbinbthebfinanc
ialbstatementsbarebinbfactbincludedbisbrelatedbtobwhichbofbthebPCAOBbassertions?
b b
A) Existence.b b
B) Rightsbandbobligations.b
C) Completeness.b
D) Valuation.b
b
b
2) Cutoffbtestsbdesignedbtobdetectbpurchasesbmadebbeforebthebendbofbthebyearbthatbhavebbeenbrec
ordedbinbthebsubsequentbyearbprovidebassurancebaboutbmanagement'sbassertionbof:
b b
A) presentationbandbdisclosure.b b
B) completeness.b
C) rightsbandbobligations.b
D) existence.b
b
b
3) Duringbanbauditbofbanbentity'sbstockholders'bequitybaccounts,bthebauditorbdeterminesbwhether
btherebarebrestrictions bonbretainedbearningsbresultingbfrombloans,bagreements,borbstateblaw.bT
hisbauditbprocedurebmostblikelybisbintendedbtobverifybmanagement'sbassertionbof:
b b
A) existenceborboccurrence.bb
B) completeness.b
C) valuationborballocation.b
D) presentationbandbdisclosure.b
b
b
4) Thebconfirmationbofbanbaccountbpayablebbalancebselectedbfrombthebgeneralbledgerbprovidesb
primarybevidencebregardingbwhichbmanagementbassertion?
Versionb1b b b b b b b b b b b 1b
, b b
A) Completeness.bb
B) Valuation.b
C) Allocation.b
D) Existence.b
b
b
5) Whatbtypebofbevidencebwouldbprovidebthebhighestblevelbofbassurancebinbanbattestationbengag
ement?
b b
A) Evidencebsecuredbsolelybfrombwithinbthebentity.b
B) Evidencebobtainedbfrombindependentbsources.b
C) Evidencebobtainedbindirectly.b
D) Evidencebobtainedbfrombmultiplebinternalbinquiries.b
b
b
6) Whichbofbthebfollowingbmanagementbassertionsbisbanbauditorbmostblikelybtestingbifbthebauditb
objectivebstatesbthatballbinventorybonbhandbisbreflectedbinbthebendingbinventorybbalance?
b b
A) Thebentitybhasbrightsbtobthebinventory.bb
B) Inventorybisbproperlybvalued.b
C) Inventorybisbproperlybpresentedbinbthebfinancialbstatements.b
D) Inventorybisbcomplete.b
b
b
7) Anbauditorbtracesbthebserialbnumbersbonbequipmentbtobabnonissuer'sbsub-
ledger.bWhichbofbthebfollowingbmanagementbassertionsbisbsupportedbbybthisbtest?
b b
A) Valuationbandballocation.b b
B) Completeness.b
C) Rightsbandbobligations.b
D) Presentationbandbdisclosure.b
b
8) Anbauditorbhasbsubstantialbdoubtbaboutbthebentity'sbabilitybtobcontinuebasbabgoingbconcernbfor
babreasonablebperiodbofbtimebbecausebofbnegativebcashbflowsbandbworkingbcapitalbdeficiencie
s.bUnderbthesebcircumstances,bthebauditorbwouldbbebmostbconcernedbaboutbthe:
b b
A) controlbenvironmentbfactorsbthatbaffectbtheborganizationalbstructure.b b
B) correlationbofbdetectionbriskbandbinherentbrisk.b
C) effectivenessbofbthebentity'sbinternalbcontrolbactivities.b
D) possiblebeffectsbonbthebentity'sbfinancialbstatements.b
b
Versionb1b b b b b b b b b b b 2b
, b
9) Whichbofbthebfollowingbtypesbofbauditbevidencebprovidesbthebbbleastbassurancebofbreliability?
b b
A) Receivablebconfirmationsbreceivedbfrombthebclient'sbcustomers.b b
B) Prenumberedbreceivingbreportsbcompletedbbybthebclient'sbemployees.b
C) Priorbmonths'bbankbstatementsbobtainedbfrombthebclient.b
D) Municipalbpropertybtaxbbillsbpreparedbinbthebclient'sbname.b
b
b
10) Whichbofbthebfollowingbisbabmanagementbassertionbregardingbaccountbbalancesbatbthebperiod
bend?
b b
A) Transactionsbandbeventsbthatbhavebbeenbrecordedbhaveboccurredbandbpertainbtobthebentity.bb
B) Transactionsbandbeventsbhavebbeenbrecordedbinbthebproperbaccounts.b
C) Thebentitybholdsborbcontrolsbthebrightsbtobassets,bandbliabilitiesbarebobligationsbofbthebentity.b
D) Amountsbandbotherbdatabrelatedbtobthebtransactionsbandbeventsbhavebbeenbrecordedbappropriate
ly.b
b
b
11) Abpractitionerbisbengagedbtobexpressbanbopinionbonbmanagement'sbassertionbthatbthebsquarebf
ootagebofbabwarehousebofferedbforbsalebisb150,000bsquarebfeet.bThebpractitionerbshouldbreferb
tobwhichbofbthebfollowingbsourcesbforbprofessionalbguidance?
b
A) StatementbofbAuditingbStandards.b b
B) StatementsbonbStandardsbforbAttestationbEngagements.b
C) StatementsbonbStandardsbforbAccountingbandbReviewbServices.b
D) StatementsbonbStandardsbforbConsultingbServices.b
b
b
12) Inbauditingbtheblong-
termbdebtbaccount,banbauditor'sbproceduresbmostblikelybwouldbfocusbprimarilybonbmanagem
ent'sbassertionbof:
b b
A) existence.b b
B) completeness.b
C) allocation.b
D) rightsbandbobligations.b
b
b
13) Anbauditorbselectedbitemsbforbtestbcountsbfrombthebclient'sbwarehousebduringbthebphysicalbin
ventorybobservation.bThebauditorbthenbtracedbthesebtestbcountsbintobthebdetailedbinventoryblis
tingbthatbultimatelybagreedbtobthebfinancialbstatements.bThisbprocedurebmostblikelybprovidedb
evidencebconcerningbmanagement'sbassertionbof:
Versionb1b b b b b b b b b b b 3b
, b b
A) completeness.b b
B) valuation.b
C) presentationbandbdisclosure.b
D) existence.b
E) rightsbandbobligations.b
b
b
14) Anbauditorbselectedbitemsbfrombthebclient'sbdetailedbinventoryblistingb(thatbagreedbtobthebfina
ncialbstatements).bDuringbthebphysicalbinventorybobservation,bthebauditorbthenbfoundbeachbit
embselectedbandbcountedbthebnumberbofbunitsbonbhand.bAssumingbthatbthebamountbonbhandb
wasbthebsamebasbthebamountbinbthebclient'sbdetailedbinventoryblisting,bthisbprocedurebmostblik
elybwouldbprovidebevidencebconcerningbmanagement'sbassertionbof:
b
A) completeness.b b
B) valuation.b
C) presentationbandbdisclosure.b
D) existence.b
E) rightsbandbobligations.b
b
b
15) AccordingbtobPCAOBbAuditingbStandardbNo.b2201b(bbASb2201),bthebauditorbshouldbidentifyb
significantbaccountsbandbdisclosuresbandbtheirbrelevantbassertions.bWhichbofbthebfollowingbfi
nancialbstatementbassertionsbisbbbnotbexplicitlybidentifiedbinbbbASb2201?
b b
A) Completeness.bb
B) Valuationborballocation.b
C) Accuracy.b
D) Existenceborboccurrence.b
E) AllbofbthesebarebassertionsbidentifiedbinbbbbASb2201.b
b
b
16) Whenbtestingbthebcompletenessbassertionbforbabliabilitybaccount,banbauditorbordinarilybworks
bfrombthe:
b b
A) financialbstatementsbtobthebpotentiallybunrecordedbitems.b b
B) potentiallybunrecordedbitemsbtobthebfinancialbstatements.b
C) accountingbrecordsbtobthebsupportingbevidence.b
D) trialbbalancebtobthebsubsidiarybledger.b
b
b
Versionb1b b b b b b b b b b b 4b
b b b b b b b b b b
ISBN10: 126036920X | ISBN13: 9781260369205
b b b b b
By Timothy Louwers, Penelope Bagley, Allen Blay, Jerry Strawser, Jay Thibod
b b b b b b b b b b
eau, David Sinason
b b b
MULTIPLEbCHOICEb-
bChoosebthebonebalternativebthatbbestbcompletesbthebstatementborbanswersbthebquestion.b
1) Thebauditbobjectivebthatballbtransactionsbandbaccountsbthatbshouldbbebpresentedbinbthebfinanc
ialbstatementsbarebinbfactbincludedbisbrelatedbtobwhichbofbthebPCAOBbassertions?
b b
A) Existence.b b
B) Rightsbandbobligations.b
C) Completeness.b
D) Valuation.b
b
b
2) Cutoffbtestsbdesignedbtobdetectbpurchasesbmadebbeforebthebendbofbthebyearbthatbhavebbeenbrec
ordedbinbthebsubsequentbyearbprovidebassurancebaboutbmanagement'sbassertionbof:
b b
A) presentationbandbdisclosure.b b
B) completeness.b
C) rightsbandbobligations.b
D) existence.b
b
b
3) Duringbanbauditbofbanbentity'sbstockholders'bequitybaccounts,bthebauditorbdeterminesbwhether
btherebarebrestrictions bonbretainedbearningsbresultingbfrombloans,bagreements,borbstateblaw.bT
hisbauditbprocedurebmostblikelybisbintendedbtobverifybmanagement'sbassertionbof:
b b
A) existenceborboccurrence.bb
B) completeness.b
C) valuationborballocation.b
D) presentationbandbdisclosure.b
b
b
4) Thebconfirmationbofbanbaccountbpayablebbalancebselectedbfrombthebgeneralbledgerbprovidesb
primarybevidencebregardingbwhichbmanagementbassertion?
Versionb1b b b b b b b b b b b 1b
, b b
A) Completeness.bb
B) Valuation.b
C) Allocation.b
D) Existence.b
b
b
5) Whatbtypebofbevidencebwouldbprovidebthebhighestblevelbofbassurancebinbanbattestationbengag
ement?
b b
A) Evidencebsecuredbsolelybfrombwithinbthebentity.b
B) Evidencebobtainedbfrombindependentbsources.b
C) Evidencebobtainedbindirectly.b
D) Evidencebobtainedbfrombmultiplebinternalbinquiries.b
b
b
6) Whichbofbthebfollowingbmanagementbassertionsbisbanbauditorbmostblikelybtestingbifbthebauditb
objectivebstatesbthatballbinventorybonbhandbisbreflectedbinbthebendingbinventorybbalance?
b b
A) Thebentitybhasbrightsbtobthebinventory.bb
B) Inventorybisbproperlybvalued.b
C) Inventorybisbproperlybpresentedbinbthebfinancialbstatements.b
D) Inventorybisbcomplete.b
b
b
7) Anbauditorbtracesbthebserialbnumbersbonbequipmentbtobabnonissuer'sbsub-
ledger.bWhichbofbthebfollowingbmanagementbassertionsbisbsupportedbbybthisbtest?
b b
A) Valuationbandballocation.b b
B) Completeness.b
C) Rightsbandbobligations.b
D) Presentationbandbdisclosure.b
b
8) Anbauditorbhasbsubstantialbdoubtbaboutbthebentity'sbabilitybtobcontinuebasbabgoingbconcernbfor
babreasonablebperiodbofbtimebbecausebofbnegativebcashbflowsbandbworkingbcapitalbdeficiencie
s.bUnderbthesebcircumstances,bthebauditorbwouldbbebmostbconcernedbaboutbthe:
b b
A) controlbenvironmentbfactorsbthatbaffectbtheborganizationalbstructure.b b
B) correlationbofbdetectionbriskbandbinherentbrisk.b
C) effectivenessbofbthebentity'sbinternalbcontrolbactivities.b
D) possiblebeffectsbonbthebentity'sbfinancialbstatements.b
b
Versionb1b b b b b b b b b b b 2b
, b
9) Whichbofbthebfollowingbtypesbofbauditbevidencebprovidesbthebbbleastbassurancebofbreliability?
b b
A) Receivablebconfirmationsbreceivedbfrombthebclient'sbcustomers.b b
B) Prenumberedbreceivingbreportsbcompletedbbybthebclient'sbemployees.b
C) Priorbmonths'bbankbstatementsbobtainedbfrombthebclient.b
D) Municipalbpropertybtaxbbillsbpreparedbinbthebclient'sbname.b
b
b
10) Whichbofbthebfollowingbisbabmanagementbassertionbregardingbaccountbbalancesbatbthebperiod
bend?
b b
A) Transactionsbandbeventsbthatbhavebbeenbrecordedbhaveboccurredbandbpertainbtobthebentity.bb
B) Transactionsbandbeventsbhavebbeenbrecordedbinbthebproperbaccounts.b
C) Thebentitybholdsborbcontrolsbthebrightsbtobassets,bandbliabilitiesbarebobligationsbofbthebentity.b
D) Amountsbandbotherbdatabrelatedbtobthebtransactionsbandbeventsbhavebbeenbrecordedbappropriate
ly.b
b
b
11) Abpractitionerbisbengagedbtobexpressbanbopinionbonbmanagement'sbassertionbthatbthebsquarebf
ootagebofbabwarehousebofferedbforbsalebisb150,000bsquarebfeet.bThebpractitionerbshouldbreferb
tobwhichbofbthebfollowingbsourcesbforbprofessionalbguidance?
b
A) StatementbofbAuditingbStandards.b b
B) StatementsbonbStandardsbforbAttestationbEngagements.b
C) StatementsbonbStandardsbforbAccountingbandbReviewbServices.b
D) StatementsbonbStandardsbforbConsultingbServices.b
b
b
12) Inbauditingbtheblong-
termbdebtbaccount,banbauditor'sbproceduresbmostblikelybwouldbfocusbprimarilybonbmanagem
ent'sbassertionbof:
b b
A) existence.b b
B) completeness.b
C) allocation.b
D) rightsbandbobligations.b
b
b
13) Anbauditorbselectedbitemsbforbtestbcountsbfrombthebclient'sbwarehousebduringbthebphysicalbin
ventorybobservation.bThebauditorbthenbtracedbthesebtestbcountsbintobthebdetailedbinventoryblis
tingbthatbultimatelybagreedbtobthebfinancialbstatements.bThisbprocedurebmostblikelybprovidedb
evidencebconcerningbmanagement'sbassertionbof:
Versionb1b b b b b b b b b b b 3b
, b b
A) completeness.b b
B) valuation.b
C) presentationbandbdisclosure.b
D) existence.b
E) rightsbandbobligations.b
b
b
14) Anbauditorbselectedbitemsbfrombthebclient'sbdetailedbinventoryblistingb(thatbagreedbtobthebfina
ncialbstatements).bDuringbthebphysicalbinventorybobservation,bthebauditorbthenbfoundbeachbit
embselectedbandbcountedbthebnumberbofbunitsbonbhand.bAssumingbthatbthebamountbonbhandb
wasbthebsamebasbthebamountbinbthebclient'sbdetailedbinventoryblisting,bthisbprocedurebmostblik
elybwouldbprovidebevidencebconcerningbmanagement'sbassertionbof:
b
A) completeness.b b
B) valuation.b
C) presentationbandbdisclosure.b
D) existence.b
E) rightsbandbobligations.b
b
b
15) AccordingbtobPCAOBbAuditingbStandardbNo.b2201b(bbASb2201),bthebauditorbshouldbidentifyb
significantbaccountsbandbdisclosuresbandbtheirbrelevantbassertions.bWhichbofbthebfollowingbfi
nancialbstatementbassertionsbisbbbnotbexplicitlybidentifiedbinbbbASb2201?
b b
A) Completeness.bb
B) Valuationborballocation.b
C) Accuracy.b
D) Existenceborboccurrence.b
E) AllbofbthesebarebassertionsbidentifiedbinbbbbASb2201.b
b
b
16) Whenbtestingbthebcompletenessbassertionbforbabliabilitybaccount,banbauditorbordinarilybworks
bfrombthe:
b b
A) financialbstatementsbtobthebpotentiallybunrecordedbitems.b b
B) potentiallybunrecordedbitemsbtobthebfinancialbstatements.b
C) accountingbrecordsbtobthebsupportingbevidence.b
D) trialbbalancebtobthebsubsidiarybledger.b
b
b
Versionb1b b b b b b b b b b b 4b
