,AuditingDF&DFAssuranceDFServices,DF7eDF(Louwer
s)DFChapterDF1D F AuditingDFandDFAssuranceDFSer
vices
1) TheDFauditDFobjectiveDFthatDFallDFtransactionsDFandDFaccountsDFthatDFshouldDFbeDFpresentedDFinDFtheD
FfinancialDFstatementsDFareDFinDFfactDFincludedDFisDFrelatedDFtoDFwhichDFofDFtheDFPCAOBDFassertions?
A) Existence.
B) RightsDFandDFobligations.
C) Completeness.
D) Valuation.DFAn
swer:D F CDFDifficu
lty:DF1DFEasy
Topic:D F Management'sDFFinancialDFStatementDFAssertions
LearningDFObjective:D F 01-
03DFDescribeDFandDFdefineDFtheDFassertionsDFthatDFmanagementDFmakesDFaboutDFtheDFrecognition,DFme
asurement,DFpresentation,DFandDFdisclosureDFofDFtheDFfinancialDFstatementsDFandDFexplainDFwhyDFaudit
orsDFuseDFthemDFasDFtheDFfocalDFpointDFofDFtheDFaudit.
Blooms:D F Remember
AACSB:D F AnalyticalDFThinkingDFAc
cessibility:D F KeyboardDFNavigation
2) CutoffDFtestsDFdesignedDFtoDFdetectDFpurchasesDFmadeDFbeforeDFtheDFendDFofDFtheDFyearDFthatDF
haveDFbeenDFrecordedDFinDFtheDFsubsequentDFyearDFprovideDFassuranceDFaboutDFmanagement'sDF
assertionDFof:
A) presentationDFandDFdisclosure.
B) completeness.
C) rightsDFandDFobligations.
D) existence.DFAnswe
r:D F BDFDifficulty:DF2DF
Medium
Topic:D F Management'sDFFinancialDFStatementDFAssertions
LearningDFObjective:D F 01-
03DFDescribeDFandDFdefineDFtheDFassertionsDFthatDFmanagementDFmakesDFaboutDFtheDFrecognition,DFme
asurement,DFpresentation,DFandDFdisclosureDFofDFtheDFfinancialDFstatementsDFandDFexplainDFwhyDFaudit
orsDFuseDFthemDFasDFtheDFfocalDFpointDFofDFtheDFaudit.
Blooms:D F Remember
AACSB:D F AnalyticalDFThinkingDFAc
cessibility:D F KeyboardDFNavigation
1
CopyrightDF©DF2018DFMcGraw-
Hill
,3) DuringDFanDFauditDFofDFanDFentity'sDFstockholders'DFequityDFaccounts,DFtheDFauditorDFdeterminesDF
whetherDFthereDFareDFrestrictionsDFonDFretainedDFearningsDFresultingDFfromDFloans,DFagreements,DFo
rDFstateDFlaw.DFThisDFauditDFprocedureDFmostDFlikelyDFisDFintendedDFtoDFverifyDFmanagement'sDFasse
rtionDFof:
A) existenceDForDFoccurrence.
B) completeness.
C) valuationDForDFallocation.
D) presentationDFandDFdisclosur
e.DFAnswer:D F D
Difficulty:DF2DFMedium
Topic:D F Management'sDFFinancialDFStatementDFAssertions
LearningDFObjective:D F 01-
03DFDescribeDFandDFdefineDFtheDFassertionsDFthatDFmanagementDFmakesDFaboutDFtheDFrecognition,DFme
asurement,DFpresentation,DFandDFdisclosureDFofDFtheDFfinancialDFstatementsDFandDFexplainDFwhyDFaudit
orsDFuseDFthemDFasDFtheDFfocalDFpointDFofDFtheDFaudit.
Blooms:D F Remember
AACSB:D F AnalyticalDFThinkingDFAc
cessibility:D F KeyboardDFNavigation
4) TheDFconfirmationDFofDFanDFaccountDFpayableDFbalanceDFselectedDFfromDFtheDFgeneralDFledgerDF
providesDFprimaryDFevidenceDFregardingDFwhichDFmanagementDFassertion?
A) Completeness.
B) Valuation.
C) Allocation.
D) Existence.DFAnsw
er:D F DDFDifficulty:DF2D
FMedium
Topic:D F Management'sDFFinancialDFStatementDFAssertions
LearningDFObjective:D F 01-
03DFDescribeDFandDFdefineDFtheDFassertionsDFthatDFmanagementDFmakesDFaboutDFtheDFrecognition,DFme
asurement,DFpresentation,DFandDFdisclosureDFofDFtheDFfinancialDFstatementsDFandDFexplainDFwhyDFaudit
orsDFuseDFthemDFasDFtheDFfocalDFpointDFofDFtheDFaudit.
Blooms:D F Remember
AACSB:D F AnalyticalDFThinkingDFAc
cessibility:D F KeyboardDFNavigation
5) WhatDFtypeDFofDFevidenceDFwouldDFprovideDFtheDFhighestDFlevelDFofDFassuranceDFinDFanDFat
testationDFengagement?
A) EvidenceDFsecuredDFsolelyDFfromDFwithinDFtheDFentity.
B) EvidenceDFobtainedDFfromDFindependentDFsources.
C) EvidenceDFobtainedDFindirectly.
D) EvidenceDFobtainedDFfromDFmultipleDFinternalDFinquiri
es.DFAnswer:D F B
Difficulty:DF3DFHard
Topic:D F Auditing,DFAttestation,DFandDFAssuranceDFServices
LearningDFObjective:D F 01-
02DFDefineDFandDFcontrastDFfinancialDFstatementDFauditing,DFattestation,DFandDFassuranceDFservices.
2
CopyrightDF©DF2018DFMcGraw-
Hill
, Blooms:D F Remember
AACSB:D F AnalyticalDFThinkingDFAc
cessibility:D F KeyboardDFNavigation
3
CopyrightDF©DF2018DFMcGraw-
Hill
s)DFChapterDF1D F AuditingDFandDFAssuranceDFSer
vices
1) TheDFauditDFobjectiveDFthatDFallDFtransactionsDFandDFaccountsDFthatDFshouldDFbeDFpresentedDFinDFtheD
FfinancialDFstatementsDFareDFinDFfactDFincludedDFisDFrelatedDFtoDFwhichDFofDFtheDFPCAOBDFassertions?
A) Existence.
B) RightsDFandDFobligations.
C) Completeness.
D) Valuation.DFAn
swer:D F CDFDifficu
lty:DF1DFEasy
Topic:D F Management'sDFFinancialDFStatementDFAssertions
LearningDFObjective:D F 01-
03DFDescribeDFandDFdefineDFtheDFassertionsDFthatDFmanagementDFmakesDFaboutDFtheDFrecognition,DFme
asurement,DFpresentation,DFandDFdisclosureDFofDFtheDFfinancialDFstatementsDFandDFexplainDFwhyDFaudit
orsDFuseDFthemDFasDFtheDFfocalDFpointDFofDFtheDFaudit.
Blooms:D F Remember
AACSB:D F AnalyticalDFThinkingDFAc
cessibility:D F KeyboardDFNavigation
2) CutoffDFtestsDFdesignedDFtoDFdetectDFpurchasesDFmadeDFbeforeDFtheDFendDFofDFtheDFyearDFthatDF
haveDFbeenDFrecordedDFinDFtheDFsubsequentDFyearDFprovideDFassuranceDFaboutDFmanagement'sDF
assertionDFof:
A) presentationDFandDFdisclosure.
B) completeness.
C) rightsDFandDFobligations.
D) existence.DFAnswe
r:D F BDFDifficulty:DF2DF
Medium
Topic:D F Management'sDFFinancialDFStatementDFAssertions
LearningDFObjective:D F 01-
03DFDescribeDFandDFdefineDFtheDFassertionsDFthatDFmanagementDFmakesDFaboutDFtheDFrecognition,DFme
asurement,DFpresentation,DFandDFdisclosureDFofDFtheDFfinancialDFstatementsDFandDFexplainDFwhyDFaudit
orsDFuseDFthemDFasDFtheDFfocalDFpointDFofDFtheDFaudit.
Blooms:D F Remember
AACSB:D F AnalyticalDFThinkingDFAc
cessibility:D F KeyboardDFNavigation
1
CopyrightDF©DF2018DFMcGraw-
Hill
,3) DuringDFanDFauditDFofDFanDFentity'sDFstockholders'DFequityDFaccounts,DFtheDFauditorDFdeterminesDF
whetherDFthereDFareDFrestrictionsDFonDFretainedDFearningsDFresultingDFfromDFloans,DFagreements,DFo
rDFstateDFlaw.DFThisDFauditDFprocedureDFmostDFlikelyDFisDFintendedDFtoDFverifyDFmanagement'sDFasse
rtionDFof:
A) existenceDForDFoccurrence.
B) completeness.
C) valuationDForDFallocation.
D) presentationDFandDFdisclosur
e.DFAnswer:D F D
Difficulty:DF2DFMedium
Topic:D F Management'sDFFinancialDFStatementDFAssertions
LearningDFObjective:D F 01-
03DFDescribeDFandDFdefineDFtheDFassertionsDFthatDFmanagementDFmakesDFaboutDFtheDFrecognition,DFme
asurement,DFpresentation,DFandDFdisclosureDFofDFtheDFfinancialDFstatementsDFandDFexplainDFwhyDFaudit
orsDFuseDFthemDFasDFtheDFfocalDFpointDFofDFtheDFaudit.
Blooms:D F Remember
AACSB:D F AnalyticalDFThinkingDFAc
cessibility:D F KeyboardDFNavigation
4) TheDFconfirmationDFofDFanDFaccountDFpayableDFbalanceDFselectedDFfromDFtheDFgeneralDFledgerDF
providesDFprimaryDFevidenceDFregardingDFwhichDFmanagementDFassertion?
A) Completeness.
B) Valuation.
C) Allocation.
D) Existence.DFAnsw
er:D F DDFDifficulty:DF2D
FMedium
Topic:D F Management'sDFFinancialDFStatementDFAssertions
LearningDFObjective:D F 01-
03DFDescribeDFandDFdefineDFtheDFassertionsDFthatDFmanagementDFmakesDFaboutDFtheDFrecognition,DFme
asurement,DFpresentation,DFandDFdisclosureDFofDFtheDFfinancialDFstatementsDFandDFexplainDFwhyDFaudit
orsDFuseDFthemDFasDFtheDFfocalDFpointDFofDFtheDFaudit.
Blooms:D F Remember
AACSB:D F AnalyticalDFThinkingDFAc
cessibility:D F KeyboardDFNavigation
5) WhatDFtypeDFofDFevidenceDFwouldDFprovideDFtheDFhighestDFlevelDFofDFassuranceDFinDFanDFat
testationDFengagement?
A) EvidenceDFsecuredDFsolelyDFfromDFwithinDFtheDFentity.
B) EvidenceDFobtainedDFfromDFindependentDFsources.
C) EvidenceDFobtainedDFindirectly.
D) EvidenceDFobtainedDFfromDFmultipleDFinternalDFinquiri
es.DFAnswer:D F B
Difficulty:DF3DFHard
Topic:D F Auditing,DFAttestation,DFandDFAssuranceDFServices
LearningDFObjective:D F 01-
02DFDefineDFandDFcontrastDFfinancialDFstatementDFauditing,DFattestation,DFandDFassuranceDFservices.
2
CopyrightDF©DF2018DFMcGraw-
Hill
, Blooms:D F Remember
AACSB:D F AnalyticalDFThinkingDFAc
cessibility:D F KeyboardDFNavigation
3
CopyrightDF©DF2018DFMcGraw-
Hill
