Full Test Bank For Auditing & Assurance Services, 8th EditionISBN10:
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126036920X | ISBN13: 9781260369205
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By Timothy Louwers, Penelope Bagley, Allen Blay, Jerry Strawser, Jay
u u u u u u u u u u
Thibodeau, David Sinason
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Student name:_
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MULTIPLEuCHOICEu-
uChooseutheuoneualternativeuthatubestucompletes utheustatementuoru answersutheuquestion.
1) Theuaudituobjectiveuthatuallutransactionsuanduaccountsuthatushouldubeupresenteduinutheufi
nancialustatementsuareuinufactuincludeduisurelatedutouwhichuofutheuPCAOBuassertions?
A) Existence.
B) Rightsuanduobligations.
C) Completeness.
D) Valuation.
2) Cutoffutestsudesignedutoudetectupurchasesumadeubeforeutheuenduofutheuyearuthatuhaveubeenur
ecordeduinutheusubsequentu yearuprovideuassuranceuaboutumanagement'suassertionuof:
A) presentationuandudisclosure.
B) completeness.
C) rightsuanduobligations.
D) existence.
3) Duringuanuaudituofuanuentity'sustockholders'uequityuaccounts,utheuauditorudeterminesuwheth
eruthereuareurestrictionsuonuretaineduearningsuresultingufromuloans,uagreements,uorustateulaw.uThisuau
dituprocedureumostulikelyuisuintendedutouverifyumanagement'suassertionuof:
A) existenceuoruoccurrence.
B) completeness.
C) valuationuoruallocation.
D) presentationuandudisclosure.
Versionu1 1
,4) Theuconfirmationuofuanuaccountupayableubalanceuselectedufromutheugeneraluledgerup
rovidesuprimaryuevidenceuregardinguwhichumanagementu assertion?
A) Completeness.
B) Valuation.
C) Allocation.
D) Existence.
5) Whatutypeuofuevidenceuwoulduprovideutheuhighestu leveluofuassuranceuinuanuattestationue
ngagement?
A) Evidenceusecuredusolelyufromuwithinutheuentity.
B) Evidenceuobtainedufromuindependentusources.
C) Evidenceuobtaineduindirectly.
D) Evidenceuobtainedufromumultipleuinternaluinquiries.
6) Whichuofutheufollowingumanagementuassertionsuisuanuauditorumostulikelyutestinguifutheua
udituobjectiveustatesuthatualluinventoryuonuhanduisureflecteduinutheuendinguinventoryubalance?
A) Theuentityuhasurightsutoutheuinventory.
B) Inventoryuisuproperlyuvalued.
C) Inventoryuisuproperlyupresenteduinutheufinancialustatements.
D) Inventoryuisucomplete.
7) Anuauditorutracesutheuserialunumbersuonuequipmentutouaunonissuer'susub-
ledger.uWhichuofutheufollowingumanagementu assertionsuisusupportedubyuthisutest?
A) Valuationuanduallocation.
B) Completeness.
C) Rightsuanduobligations.
D) Presentationuandudisclosure.
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,8) Anuauditoruhasusubstantialudoubtuaboututheuentity'suabilityutoucontinueuasuaugoinguconcernuf
oruaureasonableuperioduofutimeubecauseuofunegativeucashuflowsuanduworkingucapitaludeficiencies.uU
nderutheseucircumstances,utheuauditoruwouldubeumostu concerneduaboututhe:
A) controluenvironmentufactorsuthatuaffectutheuorganizationalustructure.
B) correlationuofudetectionuriskuanduinherenturisk.
C) effectivenessuofutheuentity'suinternalucontroluactivities.
D) possibleueffectsuonutheuentity'sufinancialustatements.
9) Whichuofutheufollowingutypesuofuaudituevidenceuprovidesutheuleastuassuranceuofure
liability?
A) Receivableuconfirmationsureceivedufromutheuclient'sucustomers.
B) Prenumberedureceivingureportsucompletedubyutheuclient'suemployees.
C) Priorumonths'ubankustatementsuobtainedufromutheuclient.
D) Municipalupropertyutaxubillsuprepareduinutheuclient'suname.
10) Whichuofutheufollowinguisuaumanagementuassertionuregardinguaccountubalancesuatutheup
erioduend?
A) Transactionsuandueventsuthatuhaveubeenurecordeduhaveuoccurreduandupertainutouthe
entity.
B) Transactionsuandueventsuhaveubeenurecordeduinutheuproperuaccounts.
C) Theuentityuholdsuorucontrolsutheurightsutouassets,uanduliabilitiesuareuobligationsuofuthe
entity.
D) Amountsuanduotherudataurelatedutoutheutransactionsuandueventsuhaveubeenurecorded
appropriately.
11) Aupractitioneruisuengagedutouexpressuanuopinionuonumanagement'suassertionuthatutheusquareuf
ootageuofuauwarehouseuoffereduforusaleuisu150,000usquareufeet.uTheupractitionerushouldureferutouwhic
huofutheu followingusourcesuforuprofessionaluguidance?
Versionu1 3
, A) StatementuofuAuditinguStandards.
B) StatementsuonuStandardsuforuAttestationuEngagements.
C) StatementsuonuStandardsuforuAccountinguanduReviewuServices.
D) StatementsuonuStandardsuforuConsultinguServices.
12) Inuauditingutheulong-
termudebtuaccount,uanuauditor'suproceduresumostulikelyuwouldufocusuprimarilyuonumanagement'sua
ssertionuof:
A) existence.
B) completeness.
C) allocation.
D) rightsuanduobligations.
13) Anuauditoruselecteduitemsuforutestucountsufromutheuclient'suwarehouseuduringutheuphysicaluin
ventoryuobservation.uTheuauditoruthenutracedutheseutestucountsuintoutheudetaileduinventoryulistingutha
tuultimatelyuagreedutoutheufinancialustatements.uThisuprocedureumostulikelyuprovideduevidenceuconc
erningumanagement'suassertionuof:
A) completeness.
B) valuation.
C) presentationuandudisclosure.
D) existence.
E) rightsuanduobligations.
14) Anuauditoruselecteduitemsufromutheuclient'sudetaileduinventoryulistingu(thatuagreedutoutheufin
ancialustatements).uDuringutheuphysicaluinventoryuobservation,utheuauditoruthenufoundueachuitemuse
lecteduanducountedutheunumberuofuunitsuonuhand.uAssuminguthatutheuamountuonuhanduwasutheusameu
asutheuamountuinutheuclient'sudetaileduinventoryulisting,uthisuprocedureumostulikelyuwoulduprovideuev
idenceuconcerningumanagement'suassertionuof:
Versionu1 4
u u u u u u u u u u u
126036920X | ISBN13: 9781260369205
u u u
By Timothy Louwers, Penelope Bagley, Allen Blay, Jerry Strawser, Jay
u u u u u u u u u u
Thibodeau, David Sinason
u u
Student name:_
u u
MULTIPLEuCHOICEu-
uChooseutheuoneualternativeuthatubestucompletes utheustatementuoru answersutheuquestion.
1) Theuaudituobjectiveuthatuallutransactionsuanduaccountsuthatushouldubeupresenteduinutheufi
nancialustatementsuareuinufactuincludeduisurelatedutouwhichuofutheuPCAOBuassertions?
A) Existence.
B) Rightsuanduobligations.
C) Completeness.
D) Valuation.
2) Cutoffutestsudesignedutoudetectupurchasesumadeubeforeutheuenduofutheuyearuthatuhaveubeenur
ecordeduinutheusubsequentu yearuprovideuassuranceuaboutumanagement'suassertionuof:
A) presentationuandudisclosure.
B) completeness.
C) rightsuanduobligations.
D) existence.
3) Duringuanuaudituofuanuentity'sustockholders'uequityuaccounts,utheuauditorudeterminesuwheth
eruthereuareurestrictionsuonuretaineduearningsuresultingufromuloans,uagreements,uorustateulaw.uThisuau
dituprocedureumostulikelyuisuintendedutouverifyumanagement'suassertionuof:
A) existenceuoruoccurrence.
B) completeness.
C) valuationuoruallocation.
D) presentationuandudisclosure.
Versionu1 1
,4) Theuconfirmationuofuanuaccountupayableubalanceuselectedufromutheugeneraluledgerup
rovidesuprimaryuevidenceuregardinguwhichumanagementu assertion?
A) Completeness.
B) Valuation.
C) Allocation.
D) Existence.
5) Whatutypeuofuevidenceuwoulduprovideutheuhighestu leveluofuassuranceuinuanuattestationue
ngagement?
A) Evidenceusecuredusolelyufromuwithinutheuentity.
B) Evidenceuobtainedufromuindependentusources.
C) Evidenceuobtaineduindirectly.
D) Evidenceuobtainedufromumultipleuinternaluinquiries.
6) Whichuofutheufollowingumanagementuassertionsuisuanuauditorumostulikelyutestinguifutheua
udituobjectiveustatesuthatualluinventoryuonuhanduisureflecteduinutheuendinguinventoryubalance?
A) Theuentityuhasurightsutoutheuinventory.
B) Inventoryuisuproperlyuvalued.
C) Inventoryuisuproperlyupresenteduinutheufinancialustatements.
D) Inventoryuisucomplete.
7) Anuauditorutracesutheuserialunumbersuonuequipmentutouaunonissuer'susub-
ledger.uWhichuofutheufollowingumanagementu assertionsuisusupportedubyuthisutest?
A) Valuationuanduallocation.
B) Completeness.
C) Rightsuanduobligations.
D) Presentationuandudisclosure.
Versionu1 2
,8) Anuauditoruhasusubstantialudoubtuaboututheuentity'suabilityutoucontinueuasuaugoinguconcernuf
oruaureasonableuperioduofutimeubecauseuofunegativeucashuflowsuanduworkingucapitaludeficiencies.uU
nderutheseucircumstances,utheuauditoruwouldubeumostu concerneduaboututhe:
A) controluenvironmentufactorsuthatuaffectutheuorganizationalustructure.
B) correlationuofudetectionuriskuanduinherenturisk.
C) effectivenessuofutheuentity'suinternalucontroluactivities.
D) possibleueffectsuonutheuentity'sufinancialustatements.
9) Whichuofutheufollowingutypesuofuaudituevidenceuprovidesutheuleastuassuranceuofure
liability?
A) Receivableuconfirmationsureceivedufromutheuclient'sucustomers.
B) Prenumberedureceivingureportsucompletedubyutheuclient'suemployees.
C) Priorumonths'ubankustatementsuobtainedufromutheuclient.
D) Municipalupropertyutaxubillsuprepareduinutheuclient'suname.
10) Whichuofutheufollowinguisuaumanagementuassertionuregardinguaccountubalancesuatutheup
erioduend?
A) Transactionsuandueventsuthatuhaveubeenurecordeduhaveuoccurreduandupertainutouthe
entity.
B) Transactionsuandueventsuhaveubeenurecordeduinutheuproperuaccounts.
C) Theuentityuholdsuorucontrolsutheurightsutouassets,uanduliabilitiesuareuobligationsuofuthe
entity.
D) Amountsuanduotherudataurelatedutoutheutransactionsuandueventsuhaveubeenurecorded
appropriately.
11) Aupractitioneruisuengagedutouexpressuanuopinionuonumanagement'suassertionuthatutheusquareuf
ootageuofuauwarehouseuoffereduforusaleuisu150,000usquareufeet.uTheupractitionerushouldureferutouwhic
huofutheu followingusourcesuforuprofessionaluguidance?
Versionu1 3
, A) StatementuofuAuditinguStandards.
B) StatementsuonuStandardsuforuAttestationuEngagements.
C) StatementsuonuStandardsuforuAccountinguanduReviewuServices.
D) StatementsuonuStandardsuforuConsultinguServices.
12) Inuauditingutheulong-
termudebtuaccount,uanuauditor'suproceduresumostulikelyuwouldufocusuprimarilyuonumanagement'sua
ssertionuof:
A) existence.
B) completeness.
C) allocation.
D) rightsuanduobligations.
13) Anuauditoruselecteduitemsuforutestucountsufromutheuclient'suwarehouseuduringutheuphysicaluin
ventoryuobservation.uTheuauditoruthenutracedutheseutestucountsuintoutheudetaileduinventoryulistingutha
tuultimatelyuagreedutoutheufinancialustatements.uThisuprocedureumostulikelyuprovideduevidenceuconc
erningumanagement'suassertionuof:
A) completeness.
B) valuation.
C) presentationuandudisclosure.
D) existence.
E) rightsuanduobligations.
14) Anuauditoruselecteduitemsufromutheuclient'sudetaileduinventoryulistingu(thatuagreedutoutheufin
ancialustatements).uDuringutheuphysicaluinventoryuobservation,utheuauditoruthenufoundueachuitemuse
lecteduanducountedutheunumberuofuunitsuonuhand.uAssuminguthatutheuamountuonuhanduwasutheusameu
asutheuamountuinutheuclient'sudetaileduinventoryulisting,uthisuprocedureumostulikelyuwoulduprovideuev
idenceuconcerningumanagement'suassertionuof:
Versionu1 4
