Stephany Fox
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Chapter 5 audit review test for ACCT441

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Stephany Fox
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Chapter 5 Audit Quiz

Question 1 of 21

1

Select from the dropdown list to complete the text.

( Existence, Accuracy ) is the assertion that assets, liabilities, and equity actually exist.

Explanation

Question 2 of 21

1

Select from the dropdown list to complete the text.

( Rights/obligations, Classification ) is the assertion that a company has the right to collect or the obligation to pay something

Explanation

Question 3 of 21

1

Select from the dropdown list to complete the text.

( Completeness, Authorization ) is the assertion that all transactions have been recorded

Explanation

Question 4 of 21

1

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( Valuation and allocation, Accuracy ) is the assertion that assets, liabilities, and equity are valued correctly.

Explanation

Question 5 of 21

1

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( Accuracy, Completeness ) is the assertion that assets, liabilities, and equity accounts are mathematically correct. It refers only to math, transposition, or amount-related errors.

Explanation

Question 6 of 21

1

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( Occurrence, Cutoff ) refers to whether or not a transaction occured

Explanation

Question 7 of 21

1

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( Completeness, Accuracy ) refers to all transactions being recorded

Explanation

Question 8 of 21

1

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( Authorization, Classification ) refers to all transactions being authorized

Explanation

Question 9 of 21

1

Select from the dropdown list to complete the text.

( Accuracy, Occurence ) refers to transactions being properly recorded

Explanation

Question 10 of 21

1

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( Cutoff, Accuracy ) refers to transaction being recorded in the proper period

Explanation

Question 11 of 21

1

Fill the blank space to complete the text.

Sufficiency is the measure of the of audit evidence.

Explanation

Question 12 of 21

1

A greater risk of misstatement requires a lower quantity of audit evidence, whereas a higher quality audit evidence results in a higher quantity of audit evidence

Select one of the following:

  • True
  • False

Explanation

Question 13 of 21

1

Select from the dropdown list to complete the text.

Appropriateness is a measure of the ( quality, quantity ) of audit evidence.

Explanation

Question 14 of 21

1

Which of the following will increase the reliability of audit evidence?

Select one or more of the following:

  • Independent source of evidence

  • effectiveness of internal control

  • personal relationship of the auditor with a member of the board of the client

  • auditor's personal knowledge

  • documentary evidence

  • Original documents

Explanation

Question 15 of 21

1

The three types of audit confirmations are positive: blank, positive: amount included, and negative.

Select one of the following:

  • True
  • False

Explanation

Question 16 of 21

1

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To fill the assurance bucket, start with ( risk, misstatement, fraud ) assessment procedures, then perform tests of controls, perform substantive analytical procedures, and acquire the remaining assurance needed from tests of details.

Explanation

Question 17 of 21

1

Analytical procedure have to do with non-financial data only.

Select one of the following:

  • True
  • False

Explanation

Question 18 of 21

1

Which of the following is used to obtain evidential matter about particular assertions related to account balances or classes of transactions.

Select one of the following:

  • risk assessment procedures

  • substantive analytical procedures

  • final analytical procedures

Explanation

Question 19 of 21

1

Which of the following is NOT an example of an analytical procedure?

Select one or more of the following:

  • compare client and industry data

  • compare the client data with similar prior period data

  • interview the staff member who collected the data.

  • get to know the accounting managers to better determine whether they are honest

  • compare client date with the expected results, using non-financial data

Explanation

Question 20 of 21

1

PCAOB auditing standard no. 3 governs documentation for public companies. It says that documentation must be maintained for years from the date of the audit.

Drag and drop to complete the text.

    7
    5
    10
    3

Explanation

Question 21 of 21

1

For which of the following do managers need to insure information flows in a way that will confirm existence?

Select one or more of the following:

  • Accounts receivable

  • Accounts payable

  • Purchases

  • Sales

Explanation

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