Chapter 5 Audit Quiz

Question 1

Question

[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

Question 21

Question

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

Answer

Accounts receivable
Accounts payable
Purchases
Sales

Next up

Chapter 5 Audit Quiz

Description

Resource summary

Question 1

Question 2

Question 3

Question 4

Question 5

Question 6

Question 7

Question 8

Question 9

Question 10

Question 11

Question 12

Question 13

Question 14

Question 15

Question 16

Question 17

Question 18

Question 19

Question 20

Question 21

Similar

	Created by Stephany Fox over 5 years ago