TEST BANK For Louwers, Auditing and Assurance Services 9th Edition, by Louwers, Bagley, Blay, Strawser, and Thibodeau, Verified Chapters 1 - 12, Complete Newest Version

TEST BANK For Louwers, Auditing and
Assurance Services 9th Edition, by Louwers,
Bagley, Blay, Strawser, and Thibodeau,
Verified Chapters 1 - 12, Complete Newest
Version
Wswswswsw

Auditingws&wsAssurancewsServices,ws9ews(Louwe
sws

rs)wsChapterws1w s AuditingwsandwsAssurancewsSe
rvices

1) Thewsauditwsobjectivewsthatwsallwstransactionswsandwsaccountswsthatwsshouldwsbewspresentedwsinwsthe
wsfinancialwsstatementswsarewsinwsfactwsincludedwsiswsrelatedwstowswhichwsofwsthewsPCAOBwsassertions

?
A) Existence.
B) Rightswsandwsobligations.
C) Completeness.
D) Valuation.wsA
nswer:w s CwsDiffic
ulty:ws1wsEasy
Topic:w s Management'swsFinancialwsStatementwsAssertions
LearningwsObjective:w s 01-
03wsDescribewsandwsdefinewsthewsassertionswsthatwsmanagementwsmakeswsaboutwsthewsrecognition,wsme
asurement,wspresentation,wsandwsdisclosurewsofwsthewsfinancialwsstatementswsandwsexplainwswhywsaudi
torswsusewsthemwsaswsthewsfocalwspointwsofwsthewsaudit.
Blooms:w s Remember
AACSB:w s AnalyticalwsThinkingwsAc
cessibility:w s KeyboardwsNavigation

2) Cutoffwstestswsdesignedwstowsdetectwspurchaseswsmadewsbeforewsthewsendwsofwsthewsyearwsthatws
havewsbeenwsrecordedwsinwsthewssubsequentwsyearwsprovidewsassurancewsaboutwsmanagement'sw
sassertionwsof:

A) presentationwsandwsdisclosure.
B) completeness.
C) rightswsandwsobligations.
D) existence.wsAnswe
r:w s BwsDifficulty:ws2ws
Medium
Topic:w s Management'swsFinancialwsStatementwsAssertions
LearningwsObjective:w s 01-
03wsDescribewsandwsdefinewsthewsassertionswsthatwsmanagementwsmakeswsaboutwsthewsrecognition,wsme
asurement,wspresentation,wsandwsdisclosurewsofwsthewsfinancialwsstatementswsandwsexplainwswhywsaudi
torswsusewsthemwsaswsthewsfocalwspointwsofwsthewsaudit.
Blooms:w s Remember
1
Copyrightws©ws2018wsMcGraw-
Hill

,AACSB:w s AnalyticalwsThinkingwsAc
cessibility:w s KeyboardwsNavigation




2
Copyrightws©ws2018wsMcGraw-
Hill

,3) Duringwsanwsauditwsofwsanwsentity'swsstockholders'wsequitywsaccounts,wsthewsauditorwsdeterminesw
swhetherwstherewsarewsrestrictionswsonwsretainedwsearningswsresultingwsfromwsloans,wsagreements,ws

orwsstatewslaw.wsThiswsauditwsprocedurewsmostwslikelywsiswsintendedwstowsverifywsmanagement'swsas
sertionwsof:
A) existencewsorwsoccurrence.
B) completeness.
C) valuationwsorwsallocation.
D) presentationwsandwsdisclosur
e.wsAnswer:w s D
Difficulty:ws2wsMedium
Topic:w s Management'swsFinancialwsStatementwsAssertions
LearningwsObjective:w s 01-
03wsDescribewsandwsdefinewsthewsassertionswsthatwsmanagementwsmakeswsaboutwsthewsrecognition,wsme
asurement,wspresentation,wsandwsdisclosurewsofwsthewsfinancialwsstatementswsandwsexplainwswhywsaudi
torswsusewsthemwsaswsthewsfocalwspointwsofwsthewsaudit.
Blooms:w s Remember
AACSB:w s AnalyticalwsThinkingwsAc
cessibility:w s KeyboardwsNavigation

4) Thewsconfirmationwsofwsanwsaccountwspayablewsbalancewsselectedwsfromwsthewsgeneralwsledgerws
provideswsprimarywsevidencewsregardingwswhichwsmanagementwsassertion?
A) Completeness.
B) Valuation.
C) Allocation.
D) Existence.wsAnsw
er:w s DwsDifficulty:ws2
wsMedium

Topic:w s Management'swsFinancialwsStatementwsAssertions
LearningwsObjective:w s 01-
03wsDescribewsandwsdefinewsthewsassertionswsthatwsmanagementwsmakeswsaboutwsthewsrecognition,wsme
asurement,wspresentation,wsandwsdisclosurewsofwsthewsfinancialwsstatementswsandwsexplainwswhywsaudi
torswsusewsthemwsaswsthewsfocalwspointwsofwsthewsaudit.
Blooms:w s Remember
AACSB:w s AnalyticalwsThinkingwsAc
cessibility:w s KeyboardwsNavigation

5) Whatwstypewsofwsevidencewswouldwsprovidewsthewshighestwslevelwsofwsassurancewsinwsanwsa
ttestationwsengagement?
A) Evidencewssecuredwssolelywsfromwswithinwsthewsentity.
B) Evidencewsobtainedwsfromwsindependentwssources.
C) Evidencewsobtainedwsindirectly.
D) Evidencewsobtainedwsfromwsmultiplewsinternalwsinquir
ies.wsAnswer:w s B
Difficulty:ws3wsHard
Topic:w s Auditing,wsAttestation,wsandwsAssurancewsServices
LearningwsObjective:w s 01-
02wsDefinewsandwscontrastwsfinancialwsstatementwsauditing,wsattestation,wsandwsassurancewsservices.
3
Copyrightws©ws2018wsMcGraw-
Hill

, Blooms:w s Remember
AACSB:w s AnalyticalwsThinkingwsAc
cessibility:w s KeyboardwsNavigation




4
Copyrightws©ws2018wsMcGraw-
Hill