ACCT 3222 Test 2 Multiple Choice Quizzes Exam
With Complete Solutions Graded A+
QUESTIONS AND ANSWERS
The three categories of management assertions are:
a. journal entries, ledgers, and trial balances
b. journal entries, account balances, and financial statements
c. transactions, ledgers, and account balances
d. classes of transactions, account balances, and presentation and disclosure. ANSWER -D
The assertion related to recording transactions in the correct accounting period is:
a. accuracy
b. completeness
c. cut-off
d. occurrence. ANSWER -C
A detailed listing of the specific audit procedures to be used to gather evidence for an
account is called the:
a. permanent file
b. audit strategy
c. audit program
d. accounting records. ANSWER -C
The quantity of evidence that an auditor will gather.
a. varies with audit risk
b. is the same for most audits because it has to be appropriate
, c. depends on the size of the audit team
d. is the same for clients in the same industry. ANSWER -A
Which is generally the most reliable form of evidence?
a. internally generated evidence from the client's IT system
b. internally generated evidence based on discussions with upper management
c. externally generated evidence held by the client
d. externally generated evidence sent directly to the auditor. ANSWER -D
An external confirmation sent to a bank:
a. requests information about the bank balances and loan amounts
b. requests information about interest rates paid on deposits and charged on loans
c. is relevant to the audit of interest revenue and expense
d. all of these answer choices are correct. ANSWER -D
When a auditor inspects a tangible asset to support a balance in the client's records, the
auditor is gathering evidence to support the:
a. completeness assertion
b. existence assertion
c. valuation and allocation assertion
d. rights and obligations assertion. ANSWER -B
When an auditor inspects tangible assets on hand and traces the details to recording in the
client's records, the auditor is gathering evidence to support the:
a. completeness assertion
b. existence assertion
c. valuation and allocation assertion
With Complete Solutions Graded A+
QUESTIONS AND ANSWERS
The three categories of management assertions are:
a. journal entries, ledgers, and trial balances
b. journal entries, account balances, and financial statements
c. transactions, ledgers, and account balances
d. classes of transactions, account balances, and presentation and disclosure. ANSWER -D
The assertion related to recording transactions in the correct accounting period is:
a. accuracy
b. completeness
c. cut-off
d. occurrence. ANSWER -C
A detailed listing of the specific audit procedures to be used to gather evidence for an
account is called the:
a. permanent file
b. audit strategy
c. audit program
d. accounting records. ANSWER -C
The quantity of evidence that an auditor will gather.
a. varies with audit risk
b. is the same for most audits because it has to be appropriate
, c. depends on the size of the audit team
d. is the same for clients in the same industry. ANSWER -A
Which is generally the most reliable form of evidence?
a. internally generated evidence from the client's IT system
b. internally generated evidence based on discussions with upper management
c. externally generated evidence held by the client
d. externally generated evidence sent directly to the auditor. ANSWER -D
An external confirmation sent to a bank:
a. requests information about the bank balances and loan amounts
b. requests information about interest rates paid on deposits and charged on loans
c. is relevant to the audit of interest revenue and expense
d. all of these answer choices are correct. ANSWER -D
When a auditor inspects a tangible asset to support a balance in the client's records, the
auditor is gathering evidence to support the:
a. completeness assertion
b. existence assertion
c. valuation and allocation assertion
d. rights and obligations assertion. ANSWER -B
When an auditor inspects tangible assets on hand and traces the details to recording in the
client's records, the auditor is gathering evidence to support the:
a. completeness assertion
b. existence assertion
c. valuation and allocation assertion
