TEST BANK FOR AUDITING & ASSURANCE SERVICE S 9TH
EDITION BY TIMOTHY LOUWERS, JERRY STR AWSER FULL
TESTBANK ALL CHAPTERS INCLUDED QUESTIONS AND
ANSWER KEY AT THE END OF EVERY CHAPTER
|| LATEST AND COMPLETE UPDATE 2025 WITH VERI FIED
SOLUTIONS GRADED A+
auditing & assurance service s 9th edition
, 1|Page
CHAPTER01
1) The audit objective that all transactions and accounts that should be presented
in t he financial statements are in fact included is related to Which of the PCAOB
assertions?
A) Existence
B) Rights and obligations
C) Completeness
D) Valuation
2) Cutoff tests designed to detect purchases made before the end of the year that have
be en recorded in the subsequent year provide assurance about management's assertion of
A) presentation and disclosure.
B) completeness.
C) rights and obligations.
D) existence.
3) During an audit of an entity's stockholders' equity accounts, the auditor determines
whe ther there are restrictions on retained earnings resulting from loans, agreements, or
state law. T his audit procedure most likely is intended to verify management's assertion of
A) existence or occurrence.
B) completeness.
C) valuation or allocation.
auditing & assurance service s 9th edition
, 2|Page
D) presentation and disclosure.
4) The confirmation of an account payable balance Selected from the general
ledg er provides primary evidence regarding Which management assertion?
A) Completeness
B) Valuation
C) Allocation
D) Existence
5) What type of evidence would provide the highest level of assurance in an
attestatio n engagement?
A) Evidence secured solely from within the entity.
B) Evidence obtained from independent sources.
C) Evidence obtained indirectly.
D) Evidence obtained from multiple internal inquiries.
6) Which of the following management assertions is an auditor most likely testing if
t he audit objective states that all inventory on hand is reflected in the ending inventory
bala nce?
A) The entity has rights to the inventory.
B) Inventory is properly valued.
C) Inventory is properly presented in the financial statements.
D) Inventory is complete.
7) An auditor traces the serial numbers on equipment to a nonissuer's subledger.
Which of the following management assertions is supported by this test?
A) Valuation and allocation
B) Completeness
auditing & assurance service s 9th edition
, 3|Page
C) Rights and obligations
D) Presentation and disclosure
8) An auditor has substantial doubt about the entity's ability to continue as a going
conce rn for a reasonable period of time because of negative cash flows and working capital
deficien cies. Under These circumstances, the auditor would be most concerned about the
A) control environment factors that affect the organizational structure.
B) correlation of detection risk and inherent risk.
C) effectiveness of the entity's internal control activities.
D) possible effects on the entity's financial statements.
9) Which of the following types of audit evidence provides theleast assurance of reliability?
A) Receivable confirmations received from the client's customers.
B) Prenumbered receiving reports completed by the client's employees.
C) Prior months' bank statements obtained from the client.
D) Municipal property tax bills prepared in the client's name.
10) Which of the following is a management assertion regarding account balances at
th e 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 t he entity.
D) Amounts and other data related to the transactions and events have been
recorde d appropriately.
auditing & assurance service s 9th edition
EDITION BY TIMOTHY LOUWERS, JERRY STR AWSER FULL
TESTBANK ALL CHAPTERS INCLUDED QUESTIONS AND
ANSWER KEY AT THE END OF EVERY CHAPTER
|| LATEST AND COMPLETE UPDATE 2025 WITH VERI FIED
SOLUTIONS GRADED A+
auditing & assurance service s 9th edition
, 1|Page
CHAPTER01
1) The audit objective that all transactions and accounts that should be presented
in t he financial statements are in fact included is related to Which of the PCAOB
assertions?
A) Existence
B) Rights and obligations
C) Completeness
D) Valuation
2) Cutoff tests designed to detect purchases made before the end of the year that have
be en recorded in the subsequent year provide assurance about management's assertion of
A) presentation and disclosure.
B) completeness.
C) rights and obligations.
D) existence.
3) During an audit of an entity's stockholders' equity accounts, the auditor determines
whe ther there are restrictions on retained earnings resulting from loans, agreements, or
state law. T his audit procedure most likely is intended to verify management's assertion of
A) existence or occurrence.
B) completeness.
C) valuation or allocation.
auditing & assurance service s 9th edition
, 2|Page
D) presentation and disclosure.
4) The confirmation of an account payable balance Selected from the general
ledg er provides primary evidence regarding Which management assertion?
A) Completeness
B) Valuation
C) Allocation
D) Existence
5) What type of evidence would provide the highest level of assurance in an
attestatio n engagement?
A) Evidence secured solely from within the entity.
B) Evidence obtained from independent sources.
C) Evidence obtained indirectly.
D) Evidence obtained from multiple internal inquiries.
6) Which of the following management assertions is an auditor most likely testing if
t he audit objective states that all inventory on hand is reflected in the ending inventory
bala nce?
A) The entity has rights to the inventory.
B) Inventory is properly valued.
C) Inventory is properly presented in the financial statements.
D) Inventory is complete.
7) An auditor traces the serial numbers on equipment to a nonissuer's subledger.
Which of the following management assertions is supported by this test?
A) Valuation and allocation
B) Completeness
auditing & assurance service s 9th edition
, 3|Page
C) Rights and obligations
D) Presentation and disclosure
8) An auditor has substantial doubt about the entity's ability to continue as a going
conce rn for a reasonable period of time because of negative cash flows and working capital
deficien cies. Under These circumstances, the auditor would be most concerned about the
A) control environment factors that affect the organizational structure.
B) correlation of detection risk and inherent risk.
C) effectiveness of the entity's internal control activities.
D) possible effects on the entity's financial statements.
9) Which of the following types of audit evidence provides theleast assurance of reliability?
A) Receivable confirmations received from the client's customers.
B) Prenumbered receiving reports completed by the client's employees.
C) Prior months' bank statements obtained from the client.
D) Municipal property tax bills prepared in the client's name.
10) Which of the following is a management assertion regarding account balances at
th e 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 t he entity.
D) Amounts and other data related to the transactions and events have been
recorde d appropriately.
auditing & assurance service s 9th edition
