Exam 13: Auditing Long-Term Liabilities and Stockholders Equity Transactions

An auditor determines that there is an inherent risk that dividends may be recorded and paid before being declared. This determination is most likely tied to which of the following management assertions?

(Multiple Choice)

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Question 41

Which of the following results in a situation where an auditor has the least amount of difficulty in determining stock valuation?

(Multiple Choice)

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Question 42

What type of risk is intentional failure by management to accurately disclose violations of debt covenants?

(Multiple Choice)

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Question 43

Which of the following procedures is a typical substantive procedure related to the relevant assertion of valuation and allocation for debt?

(Multiple Choice)

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Question 44

Which of the following is not true about auditing stockholders' equity transactions?

(Multiple Choice)

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Question 45

Valuation is the most relevant assertion associated with an inherent risk for the cost of treasury stock that is subsequently retired and not properly allocated among the appropriate accounts.

(True/False)

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Question 46

Which of the following is not a substantive test of details for dividends?

(Multiple Choice)

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Question 47

Typically,the most relevant assertion related to debt is existence.

(True/False)

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Question 48

Which of the following is not a long-term liability account with a high risk of material misstatement?

(Multiple Choice)

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Question 49

Presentation and disclosure is the most relevant audit assertion associated with the inherent risk of using inaccurate periods of service for stock options.

(True/False)

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Question 50

When auditing debt,which of the following is the primary substantive analytical procedure?

(Multiple Choice)

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Question 51

Which of the following statements about bonds is false?

(Multiple Choice)

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Question 52

Which of the following are entity-wide components of internal control that can mitigate the risk of material misstatement related to debt?

(Multiple Choice)

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Question 53

When auditing the premium or discount on bonds (including amortization),the auditor primarily focuses on which assertion?

(Multiple Choice)

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Question 54

Stockholders' equity accounts typically will be tested with only substantive analytical procedures.

(True/False)

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Question 55

Which of the following statements is true regarding the identification and assessment of the risks of material misstatements by the auditor?

(Multiple Choice)

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Question 56

Bonds are issued to finance major expansions or to refinance existing debt.

(True/False)

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Question 57

Which of the following is not true regarding restrictions on dividend payments?

(Multiple Choice)

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Question 58

In those audits where there is a heightened risk of fraud related to debt,which of the following will the auditor not typically perform?

(Multiple Choice)

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Question 59

When documenting controls,the auditor can provide this documentation in various formats including a control matrix,a control risk assessment questionnaire,and/or a memo.

(True/False)

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Question 60

Showing 41 - 60 of 125

An auditor determines that there is an inherent risk that dividends may be recorded and paid before being declared. This determination is most likely tied to which of the following management assertions?

Which of the following results in a situation where an auditor has the least amount of difficulty in determining stock valuation?

What type of risk is intentional failure by management to accurately disclose violations of debt covenants?

Which of the following procedures is a typical substantive procedure related to the relevant assertion of valuation and allocation for debt?

Which of the following is not true about auditing stockholders' equity transactions?

Valuation is the most relevant assertion associated with an inherent risk for the cost of treasury stock that is subsequently retired and not properly allocated among the appropriate accounts.

Which of the following is not a substantive test of details for dividends?

Typically,the most relevant assertion related to debt is existence.

Which of the following is not a long-term liability account with a high risk of material misstatement?

Presentation and disclosure is the most relevant audit assertion associated with the inherent risk of using inaccurate periods of service for stock options.

When auditing debt,which of the following is the primary substantive analytical procedure?

Which of the following statements about bonds is false?

Which of the following are entity-wide components of internal control that can mitigate the risk of material misstatement related to debt?

When auditing the premium or discount on bonds (including amortization),the auditor primarily focuses on which assertion?

Stockholders' equity accounts typically will be tested with only substantive analytical procedures.

Which of the following statements is true regarding the identification and assessment of the risks of material misstatements by the auditor?

Bonds are issued to finance major expansions or to refinance existing debt.

Which of the following is not true regarding restrictions on dividend payments?

In those audits where there is a heightened risk of fraud related to debt,which of the following will the auditor not typically perform?

When documenting controls,the auditor can provide this documentation in various formats including a control matrix,a control risk assessment questionnaire,and/or a memo.

Quality Auditing: Why It Matters

The Auditors Responsibilities Regarding Fraud and Mechanisms to Address Fraud: Regulation and Corporate Governance

Internal Control Over Financial Reporting: Responsibilities of Management and the External Auditor

Professional Legal Liability

Professional Auditing Standards and the Audit Opinion Formulation Process

Audit Evidence

Planning the Audit: Identifying and Responding to the Risks of Material Misstatement

Specialized Audit Tools: Sampling and Generalized Audit Software

Auditing the Revenue Cycle

Auditing Cash and Marketable Securities

Auditing Inventory, Goods and Services, and Accounts Payable: the Acquisition and Payment Cycle

Auditing Long-Lived Assets: Acquisition, Use, Impairment, and Disposal

Completing a Quality Audit

Audit Reports

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