Questions from Auditing and Assurance

Q: Which of the following procedures would most likely be performed during planning

Which of the following procedures would most likely be performed during planning? a. Surprise counting of the client’s petty cash fund. b. Reporting internal control deficiencies to the audit committe...

Q: Prior to accepting a new audit engagement, a public accounting firm

Prior to accepting a new audit engagement, a public accounting firm should a. Attempt to contact the predecessor auditors. b. Evaluate the integrity of management. c. Assess the firm’s resources to en...

Q: What is the purpose of risk assessment for an entity?

What is the purpose of risk assessment for an entity?

Q: Describe the major components of the auditors’ standard, unqualified report on

Describe the major components of the auditors’ standard, unqualified report on internal control over financial reporting.

Q: An audit plan contains a. Specifications of audit standards relevant

An audit plan contains a. Specifications of audit standards relevant to the financial statements being audited. b. Specifications of procedures the auditors believe appropriate for the financial state...

Q: When auditing the existence assertion for an asset, auditors proceed from

When auditing the existence assertion for an asset, auditors proceed from the a. Financial statement amounts back to the potentially unrecorded items. b. Potentially unrecorded items forward to the fi...

Q: Refer to the website of the Public Company Accounting Oversight Board (

Refer to the website of the Public Company Accounting Oversight Board (PCAOB) (www. pcaobus.org), review the information under “Inspections,” and select the most current inspection report for one of t...

Q: Confirmations of accounts receivable provide evidence primarily about which two assertions?

Confirmations of accounts receivable provide evidence primarily about which two assertions? a. Completeness and valuation. b. Valuation and rights and obligations. c. Existence and rights and obligati...

Q: With respect to the concept of materiality, which of the following

With respect to the concept of materiality, which of the following statements is correct? a. Materiality depends only on the dollar amount of an item relative to other items in the financial statement...

Q: When evaluating whether accounting estimates made by management are reasonable, the

When evaluating whether accounting estimates made by management are reasonable, the audit team would be most interested in which of the following? a. Key factors that are consistent with prior periods...