Exam 1: Auditing and Assurance Services

Which of the following management assertions is an auditor most likely testing if the audit objective states that all inventory on hand is reflected in the ending inventory balance?

The accounting, auditing, and investigating agency of the U.S. Congress, headed by the U.S. Comptroller General, is known as

The audit objective that all transactions are recorded in the proper account is related most closely to which one of the ASB transaction assertions?

The underlying conditions that create demand by users for reliable information include all of the following, except:

The audit objective that all balances include items owned by the client is related most closely to which one of the ASB balance assertions?

Which of the following is not included in the American Accounting Association (AAA) definition of auditing?

Which of the following is a management assertion regarding account balances at the period end?

In auditing the long-term debt account, an auditor's procedures most likely would focus primarily on management's assertion of:

Which of the following is not an ASB assertion about inventory related to presentation and disclosure?

An auditor has substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time because of negative cash flows and working capital deficiencies. Under these circumstances, the auditor would be most concerned about the:

What is information risk? What is business risk?

The engineering department at Omni Company built a piece of equipment in the company's own shop for use in the company's operations. When looking at the ending balance for the fixed asset account the auditor examined all work orders, purchased materials, labor cost reports, and applied overhead that were capitalized as part of the equipment costs. Which of the following is the ASB balance assertion most closely related to the auditor's testing?

The audit objective that all balances include all items that should be recorded in that account is related most closely to which one of the ASB balance assertions?

Which of the following is the essential purpose of the audit function?

The four basic requirements for becoming a CPA in most states are:

What type of evidence would provide the highest level of assurance in an attestation engagement?

The audit objective that all transactions are recorded in the proper period is related most closely to which of the Audit Standards Board (ASB) transaction assertions?

Cutoff tests designed to detect purchases made before the end of the year that have been recorded in the subsequent year provide assurance about management's assertion of:

Assurance services involve all of the following, except:

Which of the following best describes the primary role and responsibility of independent external auditor?