Question 1

Organization charts are typically found in the current file.

Accepted Answer

A) True 
 B)False

Question 2

Working papers belong to the client, who is responsible for their safekeeping.

Accepted Answer

A) True 
 B)False

Question 3

Define the term working paper and indicate the purposes served by working papers.

Accepted Answer

Working papers are the records kept by t

Question 4

The professional standards identify five categories of assertions made by management that are contained in the financial statements. The categories of assertions identified by the profession are:A.
Existence or occurrence
B.Completeness
C.Rights and obligations
D.Valuation or allocation
E.Presentation and disclosure
REQUIRED: Using the letters given above, indicate the assertion that relates to each listed audit objective.
1.All sales transactions that have been recorded actually occurred during the
period.
2.The details of sales transactions support their presentation in the financial
statements.
3.All sales are correctly valued at their historical cost and correctly journalized,
summarized, and posted.
4.Accounts receivable at the balance sheet date represents legal claims of the entity
on customers for payment.
5.All sales transactions that occurred during the period have been recorded.

Accepted Answer

The answer of The professional standards identify five categories of...

Question 5

Reclassifying entries pertain primarily to the assertion:

Accepted Answer

A)  existence or occurrence. 
B)  completeness. 
C)  valuation or allocation. 
D)  rights and obligations. 
E)  presentation and disclosure. 
A)  existence or occurrence. 
B)  completeness. 
C)  valuation or allocation. 
D)  rights and obligations. 
E)  presentation and disclosure.

Question 6

Identify and briefly describe each of the ten types of audit procedures.

Accepted Answer

The types of audit procedures are:
1.<b>

Question 7

Observing relates to watching or witnessing the performance of an activity or process.

Accepted Answer

A) True 
 B)False

Question 8

Account activity for the current period is most likely to appear in which of the following types of audit working papers?

Accepted Answer

A)  working trial balance 
B)  audit memoranda 
C)  documentation of corroborating information 
D)  schedules and analyses 
E)  adjusting and reclassifying entries 
A)  working trial balance 
B)  audit memoranda 
C)  documentation of corroborating information 
D)  schedules and analyses 
E)  adjusting and reclassifying entries

Question 9

Which of the following would not be considered an analytical procedure?

Accepted Answer

A)  calculate the gross profit ratio and compare it to the industry figure 
B)  compare current year's operating expenses to prior year's 
C)  compare current year's working capital to prior year's 
D)  divide sales commissions by sales and compare the results to the established
Commission rate 
E)  compare the per unit price on a sales invoice to the master price list 
A)  calculate the gross profit ratio and compare it to the industry figure 
B)  compare current year's operating expenses to prior year's 
C)  compare current year's working capital to prior year's 
D)  divide sales commissions by sales and compare the results to the established
Commission rate 
E)  compare the per unit price on a sales invoice to the master price list

Question 10

Specific audit objectives are normally:

Accepted Answer

A)  the same as the categories of management's financial statement assertions. 
B)  developed for each item in the financial statements and derived from the categories of management's financial statement assertions. 
C)  derived from the categories of management's financial statement assertions. 
D)  developed for each item in the financial statements. 
E)  developed for material items in the financial statements. 
A)  the same as the categories of management's financial statement assertions. 
B)  developed for each item in the financial statements and derived from the categories of management's financial statement assertions. 
C)  derived from the categories of management's financial statement assertions. 
D)  developed for each item in the financial statements. 
E)  developed for material items in the financial statements.

Question 11

Recalculation consists of checking the mathematical accuracy of workpapers.

Accepted Answer

A) True 
 B)False

Organization charts are typically found in the current file.

Working papers belong to the client, who is responsible for their safekeeping.

Define the term working paper and indicate the purposes served by working papers.

Reclassifying entries pertain primarily to the assertion:

Identify and briefly describe each of the ten types of audit procedures.

Observing relates to watching or witnessing the performance of an activity or process.

Account activity for the current period is most likely to appear in which of the following types of audit working papers?

Which of the following would not be considered an analytical procedure?

Specific audit objectives are normally:

Recalculation consists of checking the mathematical accuracy of workpapers.

Auditing and the Public Accounting

Financial Statement Audits and

Professional Ethics

Auditors Legal Liability

Overview of the Audit Process

Accepting the Engagement and

Materiality Decisions and Performing Analytical Procedures

Audit Risk, Including the Risk of Fraud

Understanding Internal Controls

Audit Procedures in Response to Assessed Risks: Tests of Controls

Audit Procedures in Response to Assessed Risks: Substantive Tests

Audit Sampling in Substantive Tests

Auditing the Revenue Cycle

Auditing the Expenditure Cycle

Auditing the Production and

Auditing the Investing and

Auditing Investments and

Completing the Audit and Postaudit

Attest and Assurance Services, and Related Reports

Internal, Operational, and

Filters

Exam 6: Audit Evidence, Audit Objectives,

Organization charts are typically found in the current file.

Working papers belong to the client, who is responsible for their safekeeping.

Define the term working paper and indicate the purposes served by working papers.

Reclassifying entries pertain primarily to the assertion:

Identify and briefly describe each of the ten types of audit procedures.

Observing relates to watching or witnessing the performance of an activity or process.

Account activity for the current period is most likely to appear in which of the following types of audit working papers?

Which of the following would not be considered an analytical procedure?

Specific audit objectives are normally:

Recalculation consists of checking the mathematical accuracy of workpapers.

Auditing and the Public Accounting

Financial Statement Audits and

Professional Ethics

Auditors Legal Liability

Overview of the Audit Process

Accepting the Engagement and

Materiality Decisions and Performing Analytical Procedures

Audit Risk, Including the Risk of Fraud

Understanding Internal Controls

Audit Procedures in Response to Assessed Risks: Tests of Controls

Audit Procedures in Response to Assessed Risks: Substantive Tests

Audit Sampling in Substantive Tests

Auditing the Revenue Cycle

Auditing the Expenditure Cycle

Auditing the Production and

Auditing the Investing and

Auditing Investments and

Completing the Audit and Postaudit

Attest and Assurance Services, and Related Reports

Internal, Operational, and

Filters