Test Bank for Auditing & Assurance Services 9th Edition by Timothy Louwers, Jerry Strawser with all chapters updated ||complete solution

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Test`Bank`for`Auditing`&`Assurance`Services`9th`Edition`by`Timothy
Louwers,`Jerry`Strawser



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,Chap`01`9e Answers`Included
1) The`audit`objective`that`all`transactions`and`accounts`that`should`be`presented`in`the`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`been
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`whether
there`are`restrictions`on`retained`earnings`resulting`from`loans,`agreements,`or`state`law.`This
audit`procedure`most`likely`is`intended`to`verify`management's`assertion`of
A) existence`or`occurrence.
B) completeness.
C) valuation`or`allocation.
D) presentation`and`disclosure.



4) The`confirmation`of`an`account`payable`balance`selected`from`the`general`ledger`provides`
primary`evidence`regarding`which`management`assertion?
A) Completeness
B) Valuation
C) Allocation
D) Existence




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,5) What`type`of`evidence`would`provide`the`highest`level`of`assurance`in`an`attestation`
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`the`audit`
objective`states`that`all`inventory`on`hand`is`reflected`in`the`ending`inventory`balance?
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
C) Rights`and`obligations
D) Presentation`and`disclosure



8) An`auditor`has`substantial`doubt`about`the`entity's`ability`to`continue`as`a`going`concern`for`a
reasonable`period`of`time`because`of`negative`cash`flows`and`working`capital`deficiencies.
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.




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, 10) 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.
D) Amounts`and`other`data`related`to`the`transactions`and`events`have`been`recorded`
appropriately.


11) A`practitioner`is`engaged`to`express`an`opinion`on`management's`assertion`that`the`square
footage`of`a`warehouse`offered`for`sale`is`150,000`square`feet.`The`practitioner`should`refer
to`which`of`the`following`sources`for`professional`guidance?
A) Statement`of`Auditing`Standards.
B) Statements`on`Standards`for`Attestation`Engagements.
C) Statements`on`Standards`for`Accounting`and`Review`Services.
D) Statements`on`Standards`for`Consulting`Services.



12) In`auditing`the`long-
term`debt`account,`an`auditor's`procedures`most`likely`would`focus`primarily`on`
management's`assertion`of
A) existence.
B) completeness.
C) allocation.
D) rights`and`obligations.



13) An`auditor`selected`items`for`test`counts`from`the`client's`warehouse`during`the`physical`
inventory`observation.`The`auditor`then`traced`these`test`counts`into`the`detailed`inventory
listing`that`ultimately`agreed`to`the`financial`statements.`This`procedure`most`likely`provided`
evidence`concerning`management's`assertion`of
A) completeness.
B) valuation.
C) presentation`and`disclosure.
D) existence.
E) rights`and`obligations.




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