Auditing Management Assertions Quiz

Which of the following is not a management assertion?

• Valuation and allocation

• Completeness

• Accuracy

• Independence

What is the purpose of substantive procedures in auditing?

• To assess internal control effectiveness

• To evaluate financial statement assertions

• To identify fraud risks

• To ensure compliance with laws and regulations

Which of the following is not a test of control?

• Inspection of documents

• Observation

• Confirmation

• Inquiry

When performing test of details, auditors are focusing on:

• Internal control procedures

• Sample size determination

• Detailed testing of account balances

• Risk assessment

Which of the following procedures is a test of control?

• Recalculation

• Observing inventory count

• Analytical procedures

• Vouching

What is the main goal of management assertions in auditing?

• Ensure audit report is issued on time

• Present true and fair view of financial statements

• Reduce audit risk to zero

• Review internal audit findings

In auditing, what is the purpose of test of controls?

• To identify material misstatements

• To detect fraud

• To assess the effectiveness of internal controls

• To confirm account balances

When conducting substantive procedures, auditors are primarily concerned with:

• Evaluating internal controls

• Verifying the accuracy of numbers

• Investigating potential fraud

• Confirming account balances

Which of the following is a test of details of transactions?

• Analytical procedures

• Reconciliation

• Vouching

• Observation

Which management assertion is related to rights and obligations?

• Valuation

• Completeness

• Existence

• Accuracy