WorksheetsChapter 4
Total questions: 23
Worksheet time: 14mins
The elements of FSs are aware of:
In the case of the statement of financial position (or Balance sheet): assets, liabilities and ownership interest
In the case of the profit and loss account and any other statement of financial performance- gains and losses.
Contributions from owners and distributions to owners.
All of the above answers.
Management of the company is responsible for preparing the financial statements, which give a true and fair view of the financial position of the company and of its results and
cash flows for the year in accordance with GAAP standards, accounting regime for enterprises and legal regulations relating to financial reporting
True
False
In preparing these FSs, the company is required to:
Select suitable accounting policies and then apply them consistently
Make judgments and estimates that are reasonable and prudent
State whether applicable accounting principles have been followed, subject to any material departures disclosed and explained in the FSs
Design and implement an effective internal control system for the
purpose of properly preparing and presenting the FSs to minimize errors and fraud.
Prepare the FSs on a going concern basis.
Assertions are the implicit or explicit claims and representations made by the management responsible for the preparation of financial statements regarding the appropriateness of the various elements of financial statements and disclosures.
True
False
Financial statement assertions
Existence (sự hiện hữu)
Rights & Obligations (quyền và nghĩa vụ)
Occurrence (sự phát sinh)
Completeness (tính đầy đủ)
Valuation (tính toán)
Measurements (đánh giá)
Presentation & disclosure (trình bày và thuyết minh)
Transactions and Events (nghiệp vụ):
Occurrence (sự phát sinh): Recorded transactions exist
Completeness (tính đầy đủ): Existing transactions are recorded
Accuracy (tính chính xác): Recorded transactions are stated at the correct amounts
Classification (phân loại): Transactions are properly classified.
Cut-off: Transactions are recorded in the proper period
Account balance (số dư):
Existence (sự hiện hữu): Amounts included exist
Completeness (tính đầy đủ): Existing amounts are included
Valuation and allocation (đánh giá và phân bổ) : Amounts have been valued appropriately
Rights and obligations (quyền và nghĩa vụ): Assets must be owned; Liabilities represent the obligations of the entity
Steps for audit procedures:
B1: Designing the audit procedures or tests
B2: Carrying out the audit procedures or tests to collect audit evidence
B3: Analyzing evidence and drawing conclusions
B4: Making decisions about whether additional information is required be obtained or whether sufficient appropriate evidence exists
The auditor can obtain audit evidence through the following procedures :
1) Inspection (kiểm tra)
2) Observation (quan sát) (ko mang lại strong evidence)
3) Inquiry= Enquiry (điều tra) (không mang lại strong evidence)
4) External confirmation (liên quan đến phải thu phải trả cần xác nhận của bên thứ 3)
5) Recalculation (tính toán lại)
6) Re-performance (thực hiện lại 1 quy trình, 1 thủ tục)
7) Analytical procedures (thủ tục phân tích)
Audit objectives:
Overall audit objective
Specific audit objective: (transactions and events (OCACC), account balance (COVER))
Both of these two answer
Overall objectives of the Auditor:
Obtain reasonable assurance
Financial statements
Free from material misstatements
Auditor’s Responsibilities
Material misstatements
Professional Skepticism
Fraudulent reporting
vs. theft of assets
Errors vs. Fraud
Reasonable Assurance
Which of the following is not a responsibility of the auditor?
To provide an opinion on the truth and fairness of the FSs
To conduct an audit in accordance with ISA
To express an opinion on the company’s going concern status.
Which of the following assertions is NOT used by auditor about account balances at the period end?
Existence
Completeness
Right and obligation
Cut-off
Which of the following assertions is NOT used by auditor about class of transaction
Occurrence
Completeness
Right and obligation
Accuracy
Management’s responsibility is to present financial statements truly and fairly in all material aspects.
True
False
Auditor has responsibility to detect material fraud and give a reasonable assurance that financial statements have no misstatements.
True
False
Assertions about classes of transactions are the same with general transaction related to audit objectives.
True
False
An audit selected items for test counts while observing a client’s physical inventory. The auditor then traced the test counts to the client’s inventory listing. This procedure most likely related to assertion of rights and obligations.
True
False
To test plant and equipment balances, an auditor examines new additions listed on an analysis of plant and equipment. This procedure most likely obtains evidence concerning management’s assertion of completeness.
True
False
Two assertions for which confirmation of accounts receivable balances provides primary evidence are
a. Completeness and Valuation
a. Valuation, Rights and Obligations
a. Rights & Obligations and Existence
a. Existence and Completeness
Cut-off tests designed to detect credit sales made before the end of the year that have been recorded in the subsequent year provide assurance about management’s assertion of
Presentation
a. Completeness
a. Rights
a. Existence
Inquiries of warehouse personnel concerning possible obsolete or slow-moving inventory items provide assurance about management’s assertion of
a. Completeness
a. Existence
a. Presentation
a. Valuation
