Questions from Auditing and Assurance

Q: List and discuss the four categories of financial ratios that are presented

List and discuss the four categories of financial ratios that are presented in the chapter.

Q: How do management assertions relate to the financial statements?

How do management assertions relate to the financial statements?

Q: List and define the assertions about classes of transactions and events,

List and define the assertions about classes of transactions and events, and related disclosures, for the period under audit.

Q: List and define the assertions about account balances, and related disclosures

List and define the assertions about account balances, and related disclosures, at the period end.

Q: Define audit evidence. Provide an example of evidence from accounting records

Define audit evidence. Provide an example of evidence from accounting records and other information.

Q: Explain why in most instances audit evidence is persuasive rather than convincing

Explain why in most instances audit evidence is persuasive rather than convincing.

Q: List and define the audit procedures for obtaining audit evidence.

List and define the audit procedures for obtaining audit evidence.

Q: In a situation that uses inspection of records and documents as a

In a situation that uses inspection of records and documents as a type of evidence, distinguish between vouching and tracing in terms of the direction of testing and the assertions being tested.

Q: Why is it necessary to obtain corroborating evidence for inquiry and for

Why is it necessary to obtain corroborating evidence for inquiry and for observation?

Q: Discuss why there is a demand for auditing services in a free

Discuss why there is a demand for auditing services in a free-market economy. What evidence suggests that auditing would be demanded even if it were not required by government regulation?