[blank_start]Existence[blank_end] is the assertion that assets, liabilities, and equity actually exist.
Answer
Existence
Accuracy
Question 2
Question
[blank_start]Rights/obligations[blank_end] is the assertion that a company has the right to collect or the obligation to pay something
Answer
Rights/obligations
Classification
Question 3
Question
[blank_start]Completeness[blank_end] is the assertion that all transactions have been recorded
Answer
Completeness
Authorization
Question 4
Question
[blank_start]Valuation and allocation[blank_end] is the assertion that assets, liabilities, and equity are valued correctly.
Answer
Valuation and allocation
Accuracy
Question 5
Question
[blank_start]Accuracy[blank_end] is the assertion that assets, liabilities, and equity accounts are mathematically correct. It refers only to math, transposition, or amount-related errors.
Answer
Accuracy
Completeness
Question 6
Question
[blank_start]Occurrence[blank_end] refers to whether or not a transaction occured
Answer
Occurrence
Cutoff
Question 7
Question
[blank_start]Completeness[blank_end] refers to all transactions being recorded
Answer
Completeness
Accuracy
Question 8
Question
[blank_start]Authorization[blank_end] refers to all transactions being authorized
Answer
Authorization
Classification
Question 9
Question
[blank_start]Accuracy[blank_end] refers to transactions being properly recorded
Answer
Accuracy
Occurence
Question 10
Question
[blank_start]Cutoff[blank_end] refers to transaction being recorded in the proper period
Answer
Cutoff
Accuracy
Question 11
Question
Sufficiency is the measure of the [blank_start]quantity[blank_end] of audit evidence.
Answer
quantity
Question 12
Question
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
Answer
True
False
Question 13
Question
Appropriateness is a measure of the [blank_start]quality[blank_end] of audit evidence.
Answer
quality
quantity
Question 14
Question
Which of the following will increase the reliability of audit evidence?
Answer
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
Question 15
Question
The three types of audit confirmations are positive: blank, positive: amount included, and negative.
Answer
True
False
Question 16
Question
To fill the assurance bucket, start with [blank_start]risk[blank_end] assessment procedures, then perform tests of controls, perform substantive analytical procedures, and acquire the remaining assurance needed from tests of details.
Answer
risk
misstatement
fraud
Question 17
Question
Analytical procedure have to do with non-financial data only.
Answer
True
False
Question 18
Question
Which of the following is used to obtain evidential matter about particular assertions related to account balances or classes of transactions.
Answer
risk assessment procedures
substantive analytical procedures
final analytical procedures
Question 19
Question
Which of the following is NOT an example of an analytical procedure?
Answer
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
Question 20
Question
PCAOB auditing standard no. 3 governs documentation for public companies. It says that documentation must be maintained for [blank_start]7[blank_end] years from the date of the audit.
Answer
7
5
10
3
Question 21
Question
For which of the following do managers need to insure information flows in a way that will confirm existence?