Quiz
Chapters 8&10
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Questions in this quiz (14)
1Why will an auditor never be eliminated by technology?
- Amany control processes require human involvement
- Bmany testing procedures require the auditor to physically inspect an asset
- Cin many cases, auditors are required to obtain and evaluate evidence from third parties
- Dtechnology would not be able to keep up with the laws that change often
2[blank_start]Audit sampling[blank_end] is the selection and evaluation of less than 100% of the items in a population of audit relevance selected in such a way that the auditor expects the [blank_start]sample[blank_end] to be representative of the population and this likely to provide a reasonable basis for conclusions about the population
- AAudit sampling
- Bsample
3[blank_start]Type I[blank_end] error is the risk that the sample supports a conclusion that the control is not operating effectively when it is operating effectively. Risk of incorrect rejection
[blank_start]Type II[blank_end] error is the risk that the sample supports a conclusion that the control is operating effectively when it is not- AType II
- BType I
4Confidence level is the complement to sampling risk. If the sampling risk is 5%, what is confidence level?
- A5%
- B95%
5Which of the following is NOT an advantage of statistical sampling?
- Atraining auditors in proper use
- Bdesign an efficient sample
- Cmeasure the sufficiency of evidence obtained
- Dquantify the sampling risk
6In conducting a statistical sample for a test of controls, auditing standards require the auditor to properly [blank_start]plan[blank_end], [blank_start]perform[blank_end], and [blank_start]evaluate[blank_end] the sampling application and to adequately [blank_start]document[blank_end] each phase of the sampling application
- Aplan
- Bperform
- Cevaluate
- Ddocument
- Eperform
- Fplan
- Gevaluate
- Hdocument
- Ievaluate
- Jplan
- Kperform
- Ldocument
- Mdocument
- Nplan
- Operform
- Pevaluate
7[blank_start]Occurrence[blank_end] The transactions have occurred
[blank_start]Completeness[blank_end] All transactions have been recorded
[blank_start]Authorization[blank_end] All transactions have been authorized
[blank_start]Accuracy[blank_end] Transactions are properly recorded
[blank_start]Cutoff[blank_end] Transactions are recorded in the proper period
[blank_start]Classification[blank_end] Transactions are recorded in the proper accounts- ACompleteness
- BAuthorization
- CAccuracy
- DCutoff
- EClassification
- FOccurrence
8[blank_start]Existence[blank_end] Assets, Liabilities, equity actually exist
[blank_start]Rights and obligations[blank_end] Company has right to collect or obligation to pay
[blank_start]Completeness[blank_end] All transactions have been recorded
[blank_start]Valuation and allocation[blank_end] Assets, liabilities, and equity valued correctly
[blank_start]Accuracy[blank_end] Assets, liabilities, equity accounts mathematically correct
[blank_start]Classification[blank_end] Assets, liabilities, equity recorded in correct accounts and properly recognized as current vs. long term- AExistence
- BRights and obligations
- CCompleteness
- DValuation and allocation
- EAccuracy
- FClassification
9What are the relevant assertions for SALES?
- AOccurence
- BCompleteness
- CAccuracy
- DValuation and allocation
- ECutoff
- FClassification
- GAllocation
- HRights and Obligations
- IAuthorization
10What are the relevant assertions for SALES RETURNS AND ALLOWANCES?
- AOccurrence
- BAccuracy
- CCutoff
- DCompleteness
- EClassification
- FAuthorization
- GRights and Obligations
11What are the relevant assertions for ACCOUNTS RECEIVABLE?
- AOccurrence
- BAccuracy
- CCutoff
- DClassification
- ERights and Obligations
- FValuation and Allocation
12The relevant assertion for Allowance for Doubtful Accounts is rights and obligations
- ATrue
- BFalse
13The relevant assertion for Bad Debt Expense is completeness
- ATrue
- BFalse
14The types of confirmations are:
[blank_start]Negative[blank_end] -do not provide evidence
[blank_start]Positive amount included[blank_end] -most amount of replies
[blank_start]Positive blank[blank_end] -most accurate- ANegative
- BPositive amount included
- CPositive blank
- DPositive amount included
- ENegative
- FPositive blank
- GPositive blank
- HNegative
- IPositive amount included
Information
- Description
- Quiz on Chapters 8&10, created by ahercher on 15/12/2015.
- Author
- ahercher
- Language
- English
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