Question 1

A pledge is something delivered as security for the payment of a debt or the fulfilment of a promise.

Accepted Answer

A) True 
 B)False  True

Question 2

The rights and obligations assertion relates to which of the following audit objectives?

Accepted Answer

A) All inventory on the inventory listing is included in the financial report 
B) Inventory is properly classified,described and disclosed in the financial report 
C) The entity owns,or has the legal right to,all of the inventory on the balance sheet 
D) All inventory owned by the entity at year-end is included on the balance sheet 
A) All inventory on the inventory listing is included in the financial report 
B) Inventory is properly classified,described and disclosed in the financial report 
C) The entity owns,or has the legal right to,all of the inventory on the balance sheet 
D) All inventory owned by the entity at year-end is included on the balance sheet C

Question 3

Which are the two audit assertions considered most important to the auditor concluding there are no material misstatements in trade receivables at year-end?

Accepted Answer

A) Occurrence and rights and obligations 
B) Valuation and allocation,and rights and obligations 
C) Existence and occurrence 
D) Existence and valuation and allocation 
A) Occurrence and rights and obligations 
B) Valuation and allocation,and rights and obligations 
C) Existence and occurrence 
D) Existence and valuation and allocation D

Question 4

Discuss why valuation and allocation is a key assertion for property,plant and equipment and explain how auditors verify the reliability of the valuations of such assets.

Accepted Answer

Valuation and allocation is a key assert

Question 5

Evaluating the adequacy of the allowance for doubtful debts account is an example of a substantive test of trade receivables that is always performed.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is not an example of a substantive test of cash payments transactions?

Accepted Answer

A) Test the mathematical accuracy of the cash receipts ledger 
B) Test the account classifications of cash payments 
C) Account for the numerical sequence of cheques issued during a specified period 
D) Determine whether the signatures on paid cheques are authorised 
A) Test the mathematical accuracy of the cash receipts ledger 
B) Test the account classifications of cash payments 
C) Account for the numerical sequence of cheques issued during a specified period 
D) Determine whether the signatures on paid cheques are authorised

Question 7

When the assessment of inherent and control risk is low:

Accepted Answer

A) there are lots of controls that have been tested and found to be effective. 
B) the level of substantive procedures is limited. 
C) Both a and b 
D) None of the above 
A) there are lots of controls that have been tested and found to be effective. 
B) the level of substantive procedures is limited. 
C) Both a and b 
D) None of the above

Question 8

What are the key assertions for payables?

Accepted Answer

A) Completeness and rights and obligations 
B) Completeness and valuation and allocation 
C) Existence and completeness 
D) Classification and valuation and allocation 
A) Completeness and rights and obligations 
B) Completeness and valuation and allocation 
C) Existence and completeness 
D) Classification and valuation and allocation

Question 9

Which of the following is a substantive test of the trade receivables balance that is always performed?

Accepted Answer

A) Evaluating the adequacy of the provision for doubtful debts 
B) Testing the accounting classification of sales transactions 
C) Testing the mathematical accuracy of the cash receipts ledger 
D) None of the above 
A) Evaluating the adequacy of the provision for doubtful debts 
B) Testing the accounting classification of sales transactions 
C) Testing the mathematical accuracy of the cash receipts ledger 
D) None of the above

Question 10

Identify and explain the key audit assertions relating to cash.

Accepted Answer

The three audit assertions that are part

Question 11

When performing substantive procedures,the key objective is to determine whether:

Accepted Answer

A) there are material misstatements within the balance being investigated. 
B) there are immaterial misstatements within the balance being investigated. 
C) the client's internal controls are operating effectively. 
D) None of the above 
A) there are material misstatements within the balance being investigated. 
B) there are immaterial misstatements within the balance being investigated. 
C) the client's internal controls are operating effectively. 
D) None of the above

Question 12

Accounting for the numerical sequence of cheques issued during a specific period is a
substantive test relating to the purchases process.

Accepted Answer

A) True 
 B)False

Question 13

A fixed assets register is used to capture additions and disposals of fixed assets,as well as calculating depreciation charges.

Accepted Answer

A) True 
 B)False

Question 14

The typical procedures performed to verify that the client has not omitted any amounts from the payables balance include:

Accepted Answer

A) performing confirmations of payables accounts. 
B) vouching recorded payables to supporting documentation. 
C) performing analytical review procedures. 
D) subsequent payments testing. 
A) performing confirmations of payables accounts. 
B) vouching recorded payables to supporting documentation. 
C) performing analytical review procedures. 
D) subsequent payments testing.

Question 15

The valuation and allocation assertion relates to which of the following audit objectives?

Accepted Answer

A) Accounts payable are stated at the amounts owed at year-end 
B) All accounts payable on the balance sheet are real debts payable for goods received or services performed 
C) All accounts payable owed by the entity at year-end are included on the balance sheet 
D) Accounts payable are properly classified,described and disclosed in the financial report 
A) Accounts payable are stated at the amounts owed at year-end 
B) All accounts payable on the balance sheet are real debts payable for goods received or services performed 
C) All accounts payable owed by the entity at year-end are included on the balance sheet 
D) Accounts payable are properly classified,described and disclosed in the financial report

Question 16

Which of the following account balances are typically audited fully substantially with limited or no controls testing?

Accepted Answer

A) Prepayments 
B) Investments 
C) Intercompany balances 
D) All of the above 
A) Prepayments 
B) Investments 
C) Intercompany balances 
D) All of the above

Question 17

The two key assertions for inventory are completeness and rights and obligations.

Accepted Answer

A) True 
 B)False

Question 18

Provisions can be easily audited by controls testing alone.

Accepted Answer

A) True 
 B)False

Question 19

Physically sighting fixed assets enables the auditor to test the rights and obligations
assertion.

Accepted Answer

A) True 
 B)False

Question 20

Accounts that are clearly trivial or immaterial are usually ignored or only subjected to:

Accepted Answer

A) confirmations. 
B) tests of controls. 
C) analytical procedures. 
D) observations. 
A) confirmations. 
B) tests of controls. 
C) analytical procedures. 
D) observations.

A pledge is something delivered as security for the payment of a debt or the fulfilment of a promise.

The rights and obligations assertion relates to which of the following audit objectives?

Which are the two audit assertions considered most important to the auditor concluding there are no material misstatements in trade receivables at year-end?

Discuss why valuation and allocation is a key assertion for property,plant and equipment and explain how auditors verify the reliability of the valuations of such assets.

Evaluating the adequacy of the allowance for doubtful debts account is an example of a substantive test of trade receivables that is always performed.

Which of the following is not an example of a substantive test of cash payments transactions?

When the assessment of inherent and control risk is low:

What are the key assertions for payables?

Which of the following is a substantive test of the trade receivables balance that is always performed?

Identify and explain the key audit assertions relating to cash.

When performing substantive procedures,the key objective is to determine whether:

Accounting for the numerical sequence of cheques issued during a specific period is a substantive test relating to the purchases process.

A fixed assets register is used to capture additions and disposals of fixed assets,as well as calculating depreciation charges.

The typical procedures performed to verify that the client has not omitted any amounts from the payables balance include:

The valuation and allocation assertion relates to which of the following audit objectives?

Which of the following account balances are typically audited fully substantially with limited or no controls testing?

The two key assertions for inventory are completeness and rights and obligations.

Provisions can be easily audited by controls testing alone.

Physically sighting fixed assets enables the auditor to test the rights and obligations assertion.

Accounts that are clearly trivial or immaterial are usually ignored or only subjected to:

Introduction and Overview of Audit and Assurance

Ethics,legal Liability and Client Acceptance

Risk Assessment I

Risk Assessment II

Audit Evidence

Gaining an Understanding of the Clients System of Internal Controls

Sampling and Overview of the Risk Response Phase of the Audit

Execution of the Audit Testing of Controls

Execution of the Audit Performing Substantive Procedures

Substantive Testing and Income Statement Accounts

Completing and Reporting on the Audit

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Exam 10: Substantive Testing and Balance Sheet Accounts

A pledge is something delivered as security for the payment of a debt or the fulfilment of a promise.

The rights and obligations assertion relates to which of the following audit objectives?

Which are the two audit assertions considered most important to the auditor concluding there are no material misstatements in trade receivables at year-end?

Discuss why valuation and allocation is a key assertion for property,plant and equipment and explain how auditors verify the reliability of the valuations of such assets.

Evaluating the adequacy of the allowance for doubtful debts account is an example of a substantive test of trade receivables that is always performed.

Which of the following is not an example of a substantive test of cash payments transactions?

When the assessment of inherent and control risk is low:

What are the key assertions for payables?

Which of the following is a substantive test of the trade receivables balance that is always performed?

Identify and explain the key audit assertions relating to cash.

When performing substantive procedures,the key objective is to determine whether:

Accounting for the numerical sequence of cheques issued during a specific period is a substantive test relating to the purchases process.

A fixed assets register is used to capture additions and disposals of fixed assets,as well as calculating depreciation charges.

The typical procedures performed to verify that the client has not omitted any amounts from the payables balance include:

The valuation and allocation assertion relates to which of the following audit objectives?

Which of the following account balances are typically audited fully substantially with limited or no controls testing?

The two key assertions for inventory are completeness and rights and obligations.

Provisions can be easily audited by controls testing alone.

Physically sighting fixed assets enables the auditor to test the rights and obligations assertion.

Accounts that are clearly trivial or immaterial are usually ignored or only subjected to:

Introduction and Overview of Audit and Assurance

Ethics,legal Liability and Client Acceptance

Risk Assessment I

Risk Assessment II

Audit Evidence

Gaining an Understanding of the Clients System of Internal Controls

Sampling and Overview of the Risk Response Phase of the Audit

Execution of the Audit Testing of Controls

Execution of the Audit Performing Substantive Procedures

Substantive Testing and Income Statement Accounts

Completing and Reporting on the Audit

Filters