Questions from Auditing and Assurance

Q: Which of the following is a reason to obtain professional certification?

Which of the following is a reason to obtain professional certification? a. Certification provides credibility that an individual is technically competent. b. Certification often is a necessary condit...

Q: An auditor selected items for test counts from the client’s warehouse during

An auditor selected items for test counts from the client’s warehouse during the physical inventory observation. The auditor then traced these test counts into the detailed inventory listing that agre...

Q: During an audit of an entity’s stockholders’ equity accounts, the auditor

During an audit of an entity’s stockholders’ equity accounts, the auditor determines whether there are restrictions on retained earnings resulting from loans, agreements, or state law. This audit proc...

Q: When auditing the accounts receivable account on the balance sheet, an

When auditing the accounts receivable account on the balance sheet, an auditor’s procedures most likely would focus primarily on management’s assertion of a. Existence. b. Completeness. c. Presentatio...

Q: Simon Blank Construction Company has two divisions. The president (Chris

Simon Blank Construction Company has two divisions. The president (Chris Simon) manages the roofing division. Simon delegated authority and responsibility for management of the modular manufacturing d...

Q: An auditor’s purpose in auditing the information contained in the pension footnote

An auditor’s purpose in auditing the information contained in the pension footnote most likely is to obtain evidence concerning management’s assertion about a. Rights and obligations. b. Existence. c....

Q: What is the concept of reasonable assurance? What are the key

What is the concept of reasonable assurance? What are the key limitations of an internal control system?

Q: Which of the following would be considered an assurance engagement?

Which of the following would be considered an assurance engagement? a. Giving an opinion on a prize promoter’s claims about the amount of sweepstakes prizes awarded in the past. b. Giving an opinion o...

Q: Why is the Auditing Standards Board’s set of management assertions important to

Why is the Auditing Standards Board’s set of management assertions important to auditors? Do these assertions differ from those included in PCAOB standards? If so, how are they different?

Q: Which of the following would the auditor consider to be an incompatible

Which of the following would the auditor consider to be an incompatible operation if the cashier receives remittances? a. The cashier prepares the daily deposit. b. The cashier makes the daily deposit...