1
Exam 1 Practice - Assertions BMGT 422 Questions with
Detailed Verified Answers (100% Correct Answers) /Already
Graded A+
When auditing the accounts receivable account on the Balance Sheet, an
auditor's procedures most likely would focus primarily on management's
assertion of:
Ans: existence
Identify the PCAOB audit objective:
Obtain evidence that the securities are bona fide and held by Spillane or a
responsible custodian and Obtain evidence that the loan transaction and
securities purchase transactions actually took place during the year under
audit.
Ans: Existence and Occurrence
Identify the PCAOB audit objective:
Obtain evidence that all the securities purchase transactions were recorded.
Ans: Completeness
Identify the PCAOB audit objective:
Obtain evidence that Spillane owned the securities and Obtain evidence that
$500,000 is the amount actually owed on the loan.
Ans: Rights and obligations
Identify the PCAOB audit objective:
Approved By:
vPretest - Stuvia US
, 2
Obtain evidence of the cost and market value of the securities held at
December 31. Decide whether any write-downs to market are required by the
appropriate reporting framework.
Ans: Valuation
Identify the PCAOB audit objective:
Obtain evidence of the committed nature of the assets, which should mean
they should be in a noncurrent classification like the loan. Obtain evidence that
restrictions on the use of the assets are disclosed fully and agree with the loan
documents.
Ans: Presentation and disclosure
In testing the goodwill at an audit client in the retail industry, an auditor may
seek to determine whether the account balance had been impaired. Such
impairment procedures would be designed to test which financial statement
assertion?
Ans: Valuation or allocation
When auditing merchandise inventory at year-end, the auditor performs audit
procedures to obtain evidence that no goods held on consignment are
included in the client's ending inventory balance. This audit procedure provides
assurance about which management assertion?
Ans: rights and obligations
During an audit of a company's cash balance on a company with operations in
only one country, the auditor is most concerned with which management
assertion?
Ans: Existence
In auditing the accrued liabilities account on the Balance Sheet (like A/R), an
auditor's procedures most likely would focus primarily on management's
assertion of:
Approved By:
vPretest - Stuvia US
Exam 1 Practice - Assertions BMGT 422 Questions with
Detailed Verified Answers (100% Correct Answers) /Already
Graded A+
When auditing the accounts receivable account on the Balance Sheet, an
auditor's procedures most likely would focus primarily on management's
assertion of:
Ans: existence
Identify the PCAOB audit objective:
Obtain evidence that the securities are bona fide and held by Spillane or a
responsible custodian and Obtain evidence that the loan transaction and
securities purchase transactions actually took place during the year under
audit.
Ans: Existence and Occurrence
Identify the PCAOB audit objective:
Obtain evidence that all the securities purchase transactions were recorded.
Ans: Completeness
Identify the PCAOB audit objective:
Obtain evidence that Spillane owned the securities and Obtain evidence that
$500,000 is the amount actually owed on the loan.
Ans: Rights and obligations
Identify the PCAOB audit objective:
Approved By:
vPretest - Stuvia US
, 2
Obtain evidence of the cost and market value of the securities held at
December 31. Decide whether any write-downs to market are required by the
appropriate reporting framework.
Ans: Valuation
Identify the PCAOB audit objective:
Obtain evidence of the committed nature of the assets, which should mean
they should be in a noncurrent classification like the loan. Obtain evidence that
restrictions on the use of the assets are disclosed fully and agree with the loan
documents.
Ans: Presentation and disclosure
In testing the goodwill at an audit client in the retail industry, an auditor may
seek to determine whether the account balance had been impaired. Such
impairment procedures would be designed to test which financial statement
assertion?
Ans: Valuation or allocation
When auditing merchandise inventory at year-end, the auditor performs audit
procedures to obtain evidence that no goods held on consignment are
included in the client's ending inventory balance. This audit procedure provides
assurance about which management assertion?
Ans: rights and obligations
During an audit of a company's cash balance on a company with operations in
only one country, the auditor is most concerned with which management
assertion?
Ans: Existence
In auditing the accrued liabilities account on the Balance Sheet (like A/R), an
auditor's procedures most likely would focus primarily on management's
assertion of:
Approved By:
vPretest - Stuvia US
