Chapter 5 Audit Quiz

Stephany Fox
Quiz by Stephany Fox, updated more than 1 year ago
Stephany Fox
Created by Stephany Fox over 5 years ago
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Description

Chapter 5 audit review test for ACCT441

Resource summary

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
  • 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?
Answer
  • Accounts receivable
  • Accounts payable
  • Purchases
  • Sales
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