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auditing questions

Reasonableness of management's accounting estimates is covered by the existence or occurrence assertion. True or False

Which one of the following is among the three components of audit risk?
a) Incurrence risk
b) Occurrence risk
c) Rejection risk
d) Acceptance risk
e) Control risk

For which of the following accounts is the primarily substantive testing strategy least likely?
a) Bonds payable
b) Trade accounts payable
c) Equipment
d) Capital stock
e) Machinery

The subject of the auditing procedure observing is least likely to be:
a) Personnel
b) Procedures
c) Processes Inventory taking
d) Physical assets

The need for independent audits of financial statements can be attributed to all of the following conditions except:
a) Remoteness
b) Complexity
c) Consequence
d) Validity
e) Conflict of interest

If reported sales for 20x0 erroneously include sales that occurred in 20x, the assertion violated on the 20x0 statements would be:
a) Existence or occurrence
b) Completeness
c) Valuation or allocation
d) Presentation and disclosure
e) Rights and obligations

Which of the following would be an example of a foreseeable party?
a) All creditors
b) Stockholders
c) Present investors
d) Future investors
e) All of the above

The two main sections of the AICPA's Code of professional Conduct are:
a) Principles and rules of conduct
b) Rules of conduct and interpretations of the rules of conduct
c) Principles and ethics rulings
d) Interpretations of the rules of conduct and ethics rules
e) Principles and interpretations of the rules of conduct

Which of the following representations does an auditor make explicitly and which implicitly when issuing a stand unqualified opinion?
Conformity with Adequancy of Consistency of
GAAP disclosure accounting

a) Explicitly Explicitly Implicitly
b) Implicitly Implicitly Explicitly
c) Explicitly Implicitly Implicitly
d) Implicitly Explicitly Explicitly
e) Explicitly Implicitly Explicitly

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auditing questions

Reasonableness of management's accounting estimates is covered by the existence or occurence assertion. True or False. False: It is valuation or allocation assertion.

Which one of the following is among the three components of audit risk?
a) Incurrence risk
b) Occurrence risk
c) Rejection risk
d) Acceptance risk
e) Control risk
e) Control risk. This is a part of audit risk.

For which of the following accounts is the primarily substantive testing strategy least likely?
a) Bonds payable
b) Trade accounts payable
c) Equipment
d) Capital stock
e) Machinery
d) Capital stock. These are authorized shares. No substantive testing required. ...

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