AUDITING AND ASSURANCE SERVICES EXAM PREP QUESTIONS AND ANSWERS FULL SOLUTION

AUDITING AND ASSURANCE SERVICES
EXAM PREP QUESTIONS AND ANSWERS
FULL SOLUTION

●● T/F: A specific error in a financial statement affects only one
management assertion.
Answer: False


●● When a CPA performs a(n) _____, limited evidence gathering work
is done, but the scope is narrower than in an audit.
Answer: review


●● Helping an organization accomplish its objectives by bringing a
systematic, disciplined approach to evaluate and improve the
effectiveness of risk management, control and governance processes is
the objective of ___ auditing
Answer: internal


●● Environmental conditions that increase user demand for relevant and
reliable information include ______, remoteness, time sensitivity, and
______.
Answer: - complexity
- consequences

, ●● Providing balance sheets, income statements, and statements of
shareholders equity, comprehensive income and cash flows is the
function of _______________________.
Answer: financial reporting


●● Management assertions about financial statement presentation and
disclosure are primary found ______.
Answer: in the footnotes


●● When planning the audit engagement, auditors use management
assertions to ______.
Answer: assess external financial reporting risks


●● Verifying accounts receivable and insurance policies with customers
and is done to test the _______ assertion.
Answer: existence


●● Auditors complete procedures to ensure reported sales transactions
were not created to fraudulently inflate profits to in order to test the
____________ assertion.
Answer: occurrence


●● The completeness assertion ______.