Questions from Auditing and Assurance

Q: Which of the following procedures would an auditor most likely rely on

Which of the following procedures would an auditor most likely rely on to verify management’s assertion of completeness? a. Reviewing standard bank confirmations for indications of cash manipulations....

Q: In testing the existence assertion for an asset, an auditor ordinarily

In testing the existence assertion for an asset, an auditor ordinarily works from the a. Financial statements to the potentially unrecorded items. b. Potentially unrecorded items to the financial stat...

Q: Which of the following statements concerning audit evidence is correct?

Which of the following statements concerning audit evidence is correct? a. To be appropriate, audit evidence should be either persuasive or relevant but need not be both. b. The measure of the reliabi...

Q: Search the Internet (e.g., an entity’s website or

Search the Internet (e.g., an entity’s website or sec.gov), and find an audit report for an entity’s audit of internal control over financial reporting. Determine whether the entity used the combined...

Q: Forestcrest Woolen Mills is a closely held North Carolina company that has

Forestcrest Woolen Mills is a closely held North Carolina company that has existed since 1920. The company manufactures high-quality woolen cloth for men’s and women’s outerwear. Your firm has audited...

Q: Search the Internet (e.g., an entity’s website or

Search the Internet (e.g., an entity’s website or sec.gov), and find an audit report for an entity’s audit of internal control over financial reporting that expresses an adverse opinion with respect t...

Q: Audit evidence can come in different forms with different degrees of reliability

Audit evidence can come in different forms with different degrees of reliability. Which of the following is the most persuasive type of evidence? a. Bank statements obtained from the entity. b. Comput...

Q: An auditor would be least likely to use confirmations in connection with

An auditor would be least likely to use confirmations in connection with the examination of a. Inventory held in a third-party warehouse. b. Refundable income taxes. c. Long-term debt. d. Stockholders...

Q: The assurance bucket is filled with all of the following types of

The assurance bucket is filled with all of the following types of evidence except a. Test of controls. b. The audit report. c. Substantive analytical procedures. d. Tests of details.

Q: The current file of the auditor’s working papers should generally include

The current file of the auditor’s working papers should generally include a. A flowchart of the accounting system. b. Organization charts. c. A copy of the financial statements. d. Copies of bond and...