Question 1

Which of the following is not an underlying condition that creates demand by users for reliable financial information?

Accepted Answer

A)  Remoteness. 
B)  Vagueness. 
C)  Consequences. 
D)  Complexity. 
A)  Remoteness. 
B)  Vagueness. 
C)  Consequences. 
D)  Complexity.

Question 2

The AICPA licenses CPAs to practice in the United States.

Accepted Answer

A) True 
 B)False

Question 3

The PCAOB assertions made by management in financial statements do not include

Accepted Answer

A)  Existence. 
B)  Compliance. 
C)  Completeness. 
D)  Presentation. 
A)  Existence. 
B)  Compliance. 
C)  Completeness. 
D)  Presentation.

Question 4

_________________________________ is the study of business operations for the purpose of making recommendations to managers on how to improve profitability.

Accepted Answer

Operationa

Question 5

When an auditor reviews additions to the equipment (fixed asset)account to make sure that repair and maintenance expenses are not understated,she wants to obtain evidence as to management's assertion regarding

Accepted Answer

A)  Completeness. 
B)  Existence. 
C)  Valuation and allocation. 
D)  Rights and obligations. 
E)  Occurrence. 
A)  Completeness. 
B)  Existence. 
C)  Valuation and allocation. 
D)  Rights and obligations. 
E)  Occurrence.

Question 6

Which of the following is an underlying condition that in part creates the demand by users for reliable information?

Accepted Answer

A)  Economic transactions are numerous and complex. 
B)  Decisions are time sensitive. 
C)  Users are separated from accounting records by distance and time. 
D)  Financial decisions are important to investors and users. 
E)  All of the above. 
A)  Economic transactions are numerous and complex. 
B)  Decisions are time sensitive. 
C)  Users are separated from accounting records by distance and time. 
D)  Financial decisions are important to investors and users. 
E)  All of the above.

Question 7

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

Accepted Answer

A)  Detection of fraud. 
B)  Examination of individual transactions to certify their validity. 
C)  Determination of whether the client's financial statement assertions are fairly stated. 
D)  Assurance of the consistent application of correct accounting procedures 
A)  Detection of fraud. 
B)  Examination of individual transactions to certify their validity. 
C)  Determination of whether the client's financial statement assertions are fairly stated. 
D)  Assurance of the consistent application of correct accounting procedures

Question 8

Assurance services are independent professional services that improve the quality of information or its context for decision makers.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following best describes assurance services?

Accepted Answer

A)  Independent professional services that report on the client's financial statements. 
B)  Independent professional services that improve the quality of information for decision makers. 
C)  Independent professional services that report on specific written management assertions. 
D)  Independent professional services that improve the client's operations. 
A)  Independent professional services that report on the client's financial statements. 
B)  Independent professional services that improve the quality of information for decision makers. 
C)  Independent professional services that report on specific written management assertions. 
D)  Independent professional services that improve the client's operations.

Question 10

ABC Company had a major sale to XYZ Company.This sale accounted for 20 percent of the revenue of ABC Company.The auditors performed the audit procedures listed in 1-3.For each audit procedure,select the ASB transaction assertion that is most likely being tested.
A. Occurrence.
B. Completeness.
C. Cutoff.
D. Accuracy.
E. Classification.

Accepted Answer

The answer of ABC Company had a major sale to...

Question 11

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

Accepted Answer

A)  Produce a company's annual financial statements and notes. 
B)  Express an opinion on the fairness of a company's annual financial statements and footnotes. 
C)  Provide business consulting advice to audit clients. 
D)  Obtain an understanding of the client's internal control structure and give management a report about control problems and deficiencies. 
A)  Produce a company's annual financial statements and notes. 
B)  Express an opinion on the fairness of a company's annual financial statements and footnotes. 
C)  Provide business consulting advice to audit clients. 
D)  Obtain an understanding of the client's internal control structure and give management a report about control problems and deficiencies.

Question 12

Inquiries of warehouse personnel concerning possible obsolete or slow-moving inventory items provide assurance about the PCAOB assertion of

Accepted Answer

A)  Completeness. 
B)  Existence. 
C)  Presentation. 
D)  Valuation. 
E)  Rights and obligations. 
A)  Completeness. 
B)  Existence. 
C)  Presentation. 
D)  Valuation. 
E)  Rights and obligations.

Question 13

Which of the following is not a major element of assurance services?

Accepted Answer

A)  Independence. 
B)  Improving the quality of information. 
C)  Improving profitability of the client. 
D)  Improving the context of information. 
A)  Independence. 
B)  Improving the quality of information. 
C)  Improving profitability of the client. 
D)  Improving the context of information.

Question 14

The risk that the information disseminated by a company will be materially false or misleading is called __________________________________.

Accepted Answer

The answer of The risk that the information disseminated by...

Question 15

Assurance service is the systematic process of objectively obtaining and evaluating evidence.

Accepted Answer

A) True 
 B)False

Question 16

Internal auditors perform only operational audits.

Accepted Answer

A) True 
 B)False

Question 17

Evidence consists of assertions about economic actions and events.

Accepted Answer

A) True 
 B)False

Question 18

______________________________________ is an auditor's tendency not to believe management assertions.

Accepted Answer

Profession

Question 19

A _____________________________ consists of writing the financial statements from a client's books and records.

Accepted Answer

The answer of A _____________________________ consists of writing the financial...

Question 20

Which of the following would be considered an assurance engagement?

Accepted Answer

A)  Giving an opinion on a prize promoter's claims about the amount of sweepstakes prizes awarded in the past. 
B)  Giving an opinion on the conformity of the financial statements of a university with generally accepted accounting principles. 
C)  Giving an opinion on the fair presentation of a newspaper's circulation data. 
D)  Giving assurance about the average drive length achieved by golfers with a client's golf balls. 
E)  All of the above. 
A)  Giving an opinion on a prize promoter's claims about the amount of sweepstakes prizes awarded in the past. 
B)  Giving an opinion on the conformity of the financial statements of a university with generally accepted accounting principles. 
C)  Giving an opinion on the fair presentation of a newspaper's circulation data. 
D)  Giving assurance about the average drive length achieved by golfers with a client's golf balls. 
E)  All of the above.

Which of the following is not an underlying condition that creates demand by users for reliable financial information?

The AICPA licenses CPAs to practice in the United States.

The PCAOB assertions made by management in financial statements do not include

_________________________________ is the study of business operations for the purpose of making recommendations to managers on how to improve profitability.

When an auditor reviews additions to the equipment (fixed asset)account to make sure that repair and maintenance expenses are not understated,she wants to obtain evidence as to management's assertion regarding

Which of the following is an underlying condition that in part creates the demand by users for reliable information?

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

Assurance services are independent professional services that improve the quality of information or its context for decision makers.

Which of the following best describes assurance services?

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

Inquiries of warehouse personnel concerning possible obsolete or slow-moving inventory items provide assurance about the PCAOB assertion of

Which of the following is not a major element of assurance services?

The risk that the information disseminated by a company will be materially false or misleading is called __________________________________.

Assurance service is the systematic process of objectively obtaining and evaluating evidence.

Internal auditors perform only operational audits.

Evidence consists of assertions about economic actions and events.

______________________________________ is an auditor's tendency not to believe management assertions.

A _____________________________ consists of writing the financial statements from a client's books and records.

Which of the following would be considered an assurance engagement?

Professional Standards

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Acquisition and Expenditure Cycle

Production Cycle

Finance and Investment Cycle

Completing the Audit

Reports on Audited Financial Statements

Other Public Accounting Services

Professional Ethics

Legal Liability

Internal Governmental and Fraud Audits

Overview of Sampling

Attributes Sampling

Variables Sampling

Auditing in a Computerized Environment

Filters

Exam 1: Auditing and Assurance Services

Which of the following is not an underlying condition that creates demand by users for reliable financial information?

The AICPA licenses CPAs to practice in the United States.

The PCAOB assertions made by management in financial statements do not include

_________________________________ is the study of business operations for the purpose of making recommendations to managers on how to improve profitability.

When an auditor reviews additions to the equipment (fixed asset)account to make sure that repair and maintenance expenses are not understated,she wants to obtain evidence as to management's assertion regarding

Which of the following is an underlying condition that in part creates the demand by users for reliable information?

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

Assurance services are independent professional services that improve the quality of information or its context for decision makers.

Which of the following best describes assurance services?

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

Inquiries of warehouse personnel concerning possible obsolete or slow-moving inventory items provide assurance about the PCAOB assertion of

Which of the following is not a major element of assurance services?

The risk that the information disseminated by a company will be materially false or misleading is called __________________________________.

Assurance service is the systematic process of objectively obtaining and evaluating evidence.

Internal auditors perform only operational audits.

Evidence consists of assertions about economic actions and events.

______________________________________ is an auditor's tendency not to believe management assertions.

A _____________________________ consists of writing the financial statements from a client's books and records.

Which of the following would be considered an assurance engagement?

Professional Standards

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Acquisition and Expenditure Cycle

Production Cycle

Finance and Investment Cycle

Completing the Audit

Reports on Audited Financial Statements

Other Public Accounting Services

Professional Ethics

Legal Liability

Internal Governmental and Fraud Audits

Overview of Sampling

Attributes Sampling

Variables Sampling

Auditing in a Computerized Environment

Filters