Auditing & Assurance Services 9e Test Bank | Tim Louwers & Jerry Strawser | Full Chapter Q&A, Answer Key, Exam Prep

Test Bank for Auditing & Assurance Services 9th Edition by Timothy L
M M M M M M M M M M M


ouwers, Jerry Strawser M M




Chap 01 9e
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Answers Included
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1) TheMauditMobjectiveMthatMallMtransactionsMandMaccountsMthatMshouldMbeMpresentedMinMtheMfina
ncialMstatementsMareMinMfactMincludedMisMrelatedMtoMwhichMofMtheMPCAOBMassertions?
A) Existence
B) RightsMandMobligations
C) Completeness
D) Valuation



2) CutoffMtestsMdesignedMtoMdetectMpurchasesMmadeMbeforeMtheMendMofMtheMyearMthatMhaveM
beenMrecordedMinMtheMsubsequentMyearMprovideMassuranceMaboutMmanagement'sMassertio
nMof
A) presentationMandMdisclosure.
B) completeness.
C) rightsMandMobligations.
D) existence.



3) DuringManMauditMofManMentity'sMstockholders'MequityMaccounts,MtheMauditorMdeterminesMwheth
erMthereMareMrestrictionsMonMretainedMearningsMresultingMfromMloans,Magreements,MorMstateMla
w.MThisMauditMprocedureMmostMlikelyMisMintendedMtoMverifyMmanagement'sMassertionMof
A) existenceMorMoccurrence.
B) completeness.
C) valuationMorMallocation.
D) presentationMandMdisclosure.



4) TheMconfirmationMofManMaccountMpayableMbalanceMselectedMfromMtheMgeneralMledgerMprovi
desMprimaryMevidenceMregardingMwhichMmanagementMassertion?
A) Completeness
B) Valuation
C) Allocation
D) Existence




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,5) WhatMtypeMofMevidenceMwouldMprovideMtheMhighestMlevelMofMassuranceMinManMattesta
tionMengagement?
A) EvidenceMsecuredMsolelyMfromMwithinMtheMentity.
B) EvidenceMobtainedMfromMindependentMsources.
C) EvidenceMobtainedMindirectly.
D) EvidenceMobtainedMfromMmultipleMinternalMinquiries.



6) WhichMofMtheMfollowingMmanagementMassertionsMisManMauditorMmostMlikelyMtestingMifMtheMa
uditMobjectiveMstatesMthatMallMinventoryMonMhandMisMreflectedMinMtheMendingMinventoryMbala
nce?
A) TheMentityMhasMrightsMtoMtheMinventory.
B) InventoryMisMproperlyMvalued.
C) InventoryMisMproperlyMpresentedMinMtheMfinancialMstatements.
D) InventoryMisMcomplete.



7) AnMauditorMtracesMtheMserialMnumbersMonMequipmentMtoMaMnonissuer'sMsubledger.MWhichMof
MtheMfollowingMmanagementMassertionsMisMsupportedMbyMthisMtest?
A) ValuationMandMallocation
B) Completeness
C) RightsMandMobligations
D) PresentationMandMdisclosure



8) AnMauditorMhasMsubstantialMdoubtMaboutMtheMentity'sMabilityMtoMcontinueMasMaMgoingMconcernM
forMaMreasonableMperiodMofMtimeMbecauseMofMnegativeMcashMflowsMandMworkingMcapitalMdefici
encies.MUnderMtheseMcircumstances,MtheMauditorMwouldMbeMmostMconcernedMaboutMthe
A) controlMenvironmentMfactorsMthatMaffectMtheMorganizationalMstructure.
B) correlationMofMdetectionMriskMandMinherentMrisk.
C) effectivenessMofMtheMentity'sMinternalMcontrolMactivities.
D) possibleMeffectsMonMtheMentity'sMfinancialMstatements.



9) WhichMofMtheMfollowingMtypesMofMauditMevidenceMprovidesMtheleastMassuranceMofMreliability?
A) ReceivableMconfirmationsMreceivedMfromMtheMclient'sMcustomers.
B) PrenumberedMreceivingMreportsMcompletedMbyMtheMclient'sMemployees.
C) PriorMmonths'MbankMstatementsMobtainedMfromMtheMclient.
D) MunicipalMpropertyMtaxMbillsMpreparedMinMtheMclient'sMname.




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,10) WhichMofMtheMfollowingMisMaMmanagementMassertionMregardingMaccountMbalancesMatMtheMpe
riodMend?
A) TransactionsMandMeventsMthatMhaveMbeenMrecordedMhaveMoccurredMandMpertainMto
MtheMentity.


B) TransactionsMandMeventsMhaveMbeenMrecordedMinMtheMproperMaccounts.
C) TheMentityMholdsMorMcontrolsMtheMrightsMtoMassets,MandMliabilitiesMareMobligationsMof
MtheMentity.


D) AmountsMandMotherMdataMrelatedMtoMtheMtransactionsMandMeventsMhaveMbeenMrecor
dedMappropriately.


11) AMpractitionerMisMengagedMtoMexpressManMopinionMonMmanagement'sMassertionMthatMtheMsqu
areMfootageMofMaMwarehouseMofferedMforMsaleMisM150,000MsquareMfeet.MTheMpractitionerMsho
uldMreferMtoMwhichMofMtheMfollowingMsourcesMforMprofessionalMguidance?
A) StatementMofMAuditingMStandards.
B) StatementsMonMStandardsMforMAttestationMEngagements.
C) StatementsMonMStandardsMforMAccountingMandMReviewMServices.
D) StatementsMonMStandardsMforMConsultingMServices.



12) InMauditingMtheMlong-
termMdebtMaccount,ManMauditor'sMproceduresMmostMlikelyMwouldMfocusMprimarilyMonMma
nagement'sMassertionMof
A) existence.
B) completeness.
C) allocation.
D) rightsMandMobligations.



13) AnMauditorMselectedMitemsMforMtestMcountsMfromMtheMclient'sMwarehouseMduringMtheMphysicalM
inventoryMobservation.MTheMauditorMthenMtracedMtheseMtestMcountsMintoMtheMdetailedMinventor
yMlistingMthatMultimatelyMagreedMtoMtheMfinancialMstatements.MThisMprocedureMmostMlikelyMpro
videdMevidenceMconcerningMmanagement'sMassertionMof
A) completeness.
B) valuation.
C) presentationMandMdisclosure.
D) existence.
E) rightsMandMobligations.




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, 14) AnMauditorMselectedMitemsMfromMtheMclient'sMdetailedMinventoryMlistingM(thatMagreedMtoMtheMf
inancialMstatements).MDuringMtheMphysicalMinventoryMobservation,MtheMauditorMthenMfoundMea
chMitemMselectedMandMcountedMtheMnumberMofMunitsMonMhand.MAssumingMthatMtheMamountMon
MhandMwasMtheMsameMasMtheMamountMinMtheMclient's MdetailedMinventoryMlisting,MthisMprocedur


eMmostMlikelyMwouldMprovideMevidenceMconcerningMmanagement'sMassertionMof
A) completeness.
B) valuation.
C) presentationMandMdisclosure.
D) existence.
E) rightsMandMobligations.



15) AccordingMtoMPCAOBMAuditingMStandardMNo.M2201M(MASM2201),MtheMauditorMshouldMiden
tifyMsignificantMaccountsMandMdisclosuresMandMtheirMrelevantMassertions.MWhichMofMtheMfol
lowingMfinancialMstatementMassertionsMisMnotMexplicitlyMidentifiedMinMASM2201?
A) Completeness
B) ValuationMorMallocation
C) Accuracy
D) ExistenceMorMoccurrence
E) AllMofMtheseMareMassertionsMidentifiedMinMASM2201.



16) WhenMtestingMtheMcompletenessMassertionMforMaMliabilityMaccount,ManMauditorMordinarilyMw
orksMfromMthe
A) financialMstatementsMtoMtheMpotentiallyMunrecordedMitems.
B) potentiallyMunrecordedMitemsMtoMtheMfinancialMstatements.
C) accountingMrecordsMtoMtheMsupportingMevidence.
D) trialMbalanceMtoMtheMsubsidiaryMledger.



17) IfManMauditorMisMperformingMproceduresMrelatedMtoMtheMinformationMthatMisMcontainedMinMth
eMclient'sMpensionMfootnote,Mhe/sheMisMmostMlikelyMtoMobtainMevidenceMconcerningMmanage
ment'sMassertionMabout
A) rightsMandMobligations.
B) existence.
C) valuation.
D) presentationMandMdisclosure.




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