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Quiz II_Auditing Class

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

1. This assertion deal with whether the accounts have been included in the financial statements at the appropriate amount.

a)

Existence or Occurrence

b)

Completeness

c)

Rights and Obligations

d)

Valuation or Allocation

2.

2. ________ is defined as the susceptibility of an assertion to a material misstatement assuming there are no internal controls.

a)

Inherent risk

b)

Control risk

c)

Detection risk

d)

Audit risk

3.

3. Responding to assessed risks includes all of the following except:

a)

Staffing and Supervision

b)

Timing of Audit Tests

c)

Evaluating Evidence

d)

Extent of Audit Tests

4.

4. Other required communications include all of the following except:

a)

Disagreements with management

b)

Significant audit adjustments

c)

Consultation with other accountants

d)

Assessment of management performance

5.

5. Which of the following is not a transaction class audit objective?

a)

Existence

b)

Occurrence

c)

Accuracy

d)

Cutoff

6.

6. Which of the following is not an account balance audit objective?

a)

Existence

b)

Completeness

c)

Classification

d)

Rights and Obligations

7.

7. All of the following affect the sufficiency of audit evidence except:

a)

Materiality

b)

Risk of Material Misstatement

c)

Relevance of Audit Evidence

d)

Size and Characteristics of the Population

8.

8. In evaluating the adequacy of the allowance for doubtful accounts, an auditor most likely reviews the entity’s aging of receivables to support management’s financial statement assertion of ...

a)

Existence

b)

Valuations & allocation

c)

Completeness

d)

Rights & obligations

9.

9. An auditor analyze repairs and maintenance accounts primarily to obtain evidence in support of the assertion that all :

a)

Non-capitalized expenditures for repairs and maintenance have been properly charged to expenses.

b)

Expenditures for property and equipment have not been charged to expenses.

c)

Non-capitalize able expenditures for repairs and maintenance have been recorded in the proper period.

d)

Expenditures for property and equipment have been recorded in the proper period

10.

10. Which of the following is not a part of the role of internal auditors

a)

Assisting the external auditors

b)

Providing reports on the reliability of financial statements to investors and creditors

c)

Consulting activities

d)

Operational audits