Test Bank for Auditing & Assurance Services 9th Edition by Timothy Louwers, Jerry Strawser

TestKBank`forAuditingK&AssuranceKServicesK9thKEditionKbyKTimoth
y
Louwers,KJerryKStrawser


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,ChapK01K9e AnswersKIncludedK
1) TheKauditKobjectiveKthatKallKtransactionsKandKaccountsKthatKshouldKbeKpresentedKinKtheKf
inancialKstatementsKareKin`factKincludedKisKrelatedKtoKwhichKofKtheKPCAOBKassertions?
A) Existence
B) RightsKandKobligations
C) Completeness
D) Valuation



2) CutoffKtestsKdesignedKtoKdetectKpurchasesKmadeKbeforeKtheKendKofKtheKyear`thatKha
veKbeenKrecordedKinKtheKsubsequentKyearKprovideKassuranceKaboutKmanagement'sK
assertionKof
A) presentationKandKdisclosure.
B) completeness.
C) rightsKandKobligations.
D) existence.



3) DuringKanKauditKofKanKentity'sKstockholders'KequityKaccounts,KtheKauditor`determinesKw
hetherKthereKareKrestrictionsKonKretainedKearningsKresultingKfromKloans,Kagreements,KorK
stateKlaw.KThisKauditKprocedureKmostKlikelyKisKintendedKtoKverifyKmanagement'sKasserti
onKof
A) existenceKor`occurrence.
B) completeness.
C) valuationKorKallocation.
D) presentationKandKdisclosure.



4) TheKconfirmationKofKanKaccountKpayableKbalanceKselectedKfromKtheKgeneralKledgerKpr
ovidesKprimary`evidenceKregardingKwhich`management`assertion?
A) Completeness
B) Valuation
C) Allocation
D) Existence




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,5) WhatKtypeKofKevidenceKwouldKprovideKtheKhighestKlevelKof`assuranceKinKanKatte
stationKengagement?
A) EvidenceKsecuredKsolelyKfromKwithinKtheKentity.
B) EvidenceKobtainedKfromKindependentKsources.
C) EvidenceKobtainedKindirectly.
D) EvidenceKobtainedKfromKmultipleKinternalKinquiries.



6) WhichKofKtheKfollowingKmanagementKassertionsKisKanKauditorKmostKlikelyKtestingKifKt
heKauditKobjective`statesKthatKallKinventoryKonKhandKisKreflectedKinKtheKendingKinven
toryKbalance?
A) TheKentityKhasKrightsKtoKtheKinventory.
B) InventoryKisKproperlyKvalued.
C) InventoryKisKproperlyKpresented`in`theKfinancialKstatements.
D) InventoryKisKcomplete.



7) AnKauditorKtracesKtheKserialKnumbersKonKequipmentKtoKaKnonissuer'sKsubledger.KWhic
hKofKtheKfollowingKmanagementKassertionsKisKsupportedKbyKthisKtest?
A) ValuationKandKallocation
B) Completeness
C) RightsKandKobligations
D) PresentationKandKdisclosure



8) AnKauditorKhasKsubstantialKdoubtKaboutKtheKentity'sKability`toKcontinueKasKaKgoingKconce
rnKfor`aKreasonableKperiodKofKtimeKbecauseKofKnegativeKcashKflowsKandKworking`capita
lKdeficiencies.KUnder`theseKcircumstances,KtheKauditor`wouldKbeKmostKconcernedKabout
Kthe
A) controlKenvironmentKfactorsKthatKaffectKtheKorganizationalKstructure.
B) correlationKofKdetectionKriskKandKinherentKrisk.
C) effectivenessKofKtheKentity'sKinternalKcontrolKactivities.
D) possibleKeffectsKonKtheKentity'sKfinancialKstatements.



9) WhichKofKtheKfollowingKtypesKofKauditKevidenceKprovidesKtheleastKassuranceKofKreliability?
A) ReceivableKconfirmationsKreceivedKfromKtheKclient'sKcustomers.
B) PrenumberedKreceivingKreportsKcompletedKbyKtheKclient'sKemployees.
C) Prior`months'KbankKstatementsKobtainedKfromKtheKclient.
D) MunicipalKpropertyKtaxKbillsKpreparedKinKtheKclient'sKname.




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, 10) WhichKofKtheKfollowingKisKaKmanagementKassertionKregardingKaccountKbalancesKatKthe
KperiodKend?
A) TransactionsKand`eventsKthatKhaveKbeen`recordedKhaveKoccurredKand`pertainKt
oKtheKentity.
B) TransactionsKandKeventsKhaveKbeenKrecordedKinKtheKproperKaccounts.
C) TheKentityKholdsKorKcontrolsKtheKrightsKtoKassets,KandKliabilitiesKareKobligation
sKofKtheKentity.
D) AmountsKandKotherKdataKrelatedKtoKtheKtransactionsKandKeventsKhaveKbeenKre
cordedKappropriately.


11) AKpractitionerKisKengagedKtoKexpressKanKopinionKonKmanagement'sKassertionKthatKthe
KsquareKfootageKofKaKwarehouseKofferedKforKsaleKisK150,000KsquareKfeet.KTheKpractitio
nerKshouldKreferKtoKwhichKof`theKfollowingKsourcesKfor`professionalKguidance?
A) Statement`ofKAuditingKStandards.
B) StatementsKonKStandardsKfor`AttestationKEngagements.
C) StatementsKonKStandardsKfor`AccountingKandKReviewKServices.
D) StatementsKonKStandardsKforKConsultingKServices.



12) InKauditingKtheKlong-
term`debtKaccount,KanKauditor'sKproceduresKmostKlikelyKwouldKfocusKprimarilyKonKman
agement'sKassertionKof
A) existence.
B) completeness.
C) allocation.
D) rightsKandKobligations.



13) AnKauditorKselectedKitemsKforKtestKcountsKfromKtheKclient'sKwarehouseKduringKtheKphy
sicalKinventory`observation.KTheKauditorKthenKtracedKtheseKtestKcountsKintoKtheKdetailed
KinventoryKlistingKthatKultimatelyKagreedKtoKtheKfinancialKstatements.KThisKprocedureKmo
stKlikely`providedKevidenceKconcerningKmanagement'sKassertionKof
A) completeness.
B) valuation.
C) presentationKandKdisclosure.
D) existence.
E) rightsKandKobligations.




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