The auditor's judgment concerning the overall fairness of the presentation of financial
position, results of operations, and cash flows is applied within the framework of:
A: quality control.
B: generally accepted auditing standards, which include the concept of materiality.
C: the auditor's evaluation of the audited company's internal control.
D: the applicable financial reporting framework (i.e., GAAP in the United States). - D: the
applicable financial reporting framework (i.e., GAAP in the United States).
Inquiries of warehouse personnel concerning possible obsolete or slow moving inventory
items provide assurance about the PCAOB assertion of:
A: completeness.
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,B: existence.
C: presentation.
D: valuation.
E: rights and obligations. - D: valuation.
Assurance services involve all of the following, except:
A: relevance as well as the reliability of information.
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, B: non financial information as well as traditional financial statements.
C: providing absolute rather than reasonable assurance.
D: electronic databases as well as printed reports. - C: providing absolute rather than
reasonable assurance.
According to PCAOB Auditing Standard No. 2201 (AS 2201), the auditor should identify
significant accounts and disclosures and their relevant assertions. Which of the following
financial statement assertions is not explicitly identified in AS 2201?
A: Completeness.
B: Valuation or allocation.
C: Accuracy.
D: Existence or occurrence.
E: All of these are assertions identified in AS 5. - C: Accuracy.
Which of the following is a management assertion regarding account balances at the period
end?
A: Transactions and events that have been recorded have occurred and pertain to the entity.
B: Transactions and events have been recorded in the proper accounts.
C: The entity holds or controls the rights to assets, and liabilities are obligations of the entity.
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position, results of operations, and cash flows is applied within the framework of:
A: quality control.
B: generally accepted auditing standards, which include the concept of materiality.
C: the auditor's evaluation of the audited company's internal control.
D: the applicable financial reporting framework (i.e., GAAP in the United States). - D: the
applicable financial reporting framework (i.e., GAAP in the United States).
Inquiries of warehouse personnel concerning possible obsolete or slow moving inventory
items provide assurance about the PCAOB assertion of:
A: completeness.
1
,B: existence.
C: presentation.
D: valuation.
E: rights and obligations. - D: valuation.
Assurance services involve all of the following, except:
A: relevance as well as the reliability of information.
2
, B: non financial information as well as traditional financial statements.
C: providing absolute rather than reasonable assurance.
D: electronic databases as well as printed reports. - C: providing absolute rather than
reasonable assurance.
According to PCAOB Auditing Standard No. 2201 (AS 2201), the auditor should identify
significant accounts and disclosures and their relevant assertions. Which of the following
financial statement assertions is not explicitly identified in AS 2201?
A: Completeness.
B: Valuation or allocation.
C: Accuracy.
D: Existence or occurrence.
E: All of these are assertions identified in AS 5. - C: Accuracy.
Which of the following is a management assertion regarding account balances at the period
end?
A: Transactions and events that have been recorded have occurred and pertain to the entity.
B: Transactions and events have been recorded in the proper accounts.
C: The entity holds or controls the rights to assets, and liabilities are obligations of the entity.
3
