Assertions

Question 1

What assertions are NOT relevant to transactions, events, and related disclosures

Answer 1

R&O

Question 2

What assertions are NOT relevant to account balances and related disclosures

Answer 2

Cutoff

Question 3

What assertion is performed through tracing, analytical review, and observation?

Answer 3

Completeness

Question 4

What assertion is performed through inspection, footing, independent recalc, and reconciliation

Answer 4

VAA

Question 5

What assertion is performed through confirmation, observation, inspection, examination, and vouching?

Answer 5

Existence & Occurrence

Question 6

What assertion is performed through inspection?

Answer 6

R&O

Question 7

What assertion is performed through inspection, review, and inquiry?

Answer 7

Understandability

Question 8

What is the objective of TOD performed as a substantive test?

Answer 8

Detect material misstatement in FS

Question 9

COVEUP

Answer 9

Transactions

Question 10

CVERUP

Answer 10

Balances

Question 11

COVEUP: Transactions and events have been recorded in the correct accounting period

Answer 11

Cutoff

Question 12

COVEUP: All transactions and events that should have been recorded have been and disclosed

Answer 12

Completeness

Question 13

COVEUP: Amounts and other data relating to recorded transactions and events have been recorded and disclosed properly

Answer 13

VAA

Question 14

COVEUP: Transactions and events that have been recorded have occurred and pertain to the entity

Answer 14

E&O

Question 15

COVEUP: Transactions and events have been recorded in the proper accounts, information is appropriately presented and described, and disclosures are clearly expressed

Answer 15

Understandability

Question 16

When auditing revenue transactions, the auditor focuses on _________ rather than _________ because revenues are more likely to be _________

Answer 16

E&O, completeness, overstated

Question 17

When auditing expense transactions, the auditor focuses on _______ because the expenses are more likely to be _________

Answer 17

Completeness, understated

Question 18

CVERUP: All assets, liabilities, and equity interests that should have been recorded have been recorded and all appropriate disclosures have been made

Answer 18

Completeness

Question 19

CVERUP: Assets, liabilities, equity, and disclosures are recorded fairly and at appropriate amounts, and any resulting allocation adjustments are approriately recorded and disclosed

Answer 19

VAA

Question 20

CVERUP: Assets, liabilities, and equity exist

Answer 20

E&O

Question 21

CVERUP: Entity holds or controls the rights to assets, and liabilities are the obligation of the entity

Answer 21

R&O

Question 22

CVERUP: Financial info is appropriately presented and described and disclosures are clearly expressed

Answer 22

Understandability

Question 23

When auditing asset balances, auditor generally focuses on testing the _______, rather than ________, because assets are more likely to be _______.

Answer 23

Existence, completeness, overstated

Question 24

When auditing liability balances, auditor generally focuses on testing the _______, because liabilities are more likely to be ______

Answer 24

Completeness, understated

Question 25

When would you use confirmation?

Answer 25

E&O

Question 26

When would you use footing, cross-footing, and recalc?

Answer 26

VAA

Question 27

When would you used inquiry?

Answer 27

Understandability

Question 28

When would you use vouching?

Answer 28

E&O

Question 29

When would you use Examination?

Answer 29

Existence

Question 30

When would you use inspection?

Answer 30

Existence, R&O, Understandability

Question 31

When would you use analytical procedures?

Answer 31

Completeness

Question 32

When would you use reconciliation?

Answer 32

Existence, VAA

Question 33

When would you use observation?

Answer 33

Existence

Question 34

When would you use tracing?

Answer 34

Completeness

Question 35

Tracing

Answer 35

Source documents –> FS

Question 36

Vouching

Answer 36

FS –> Source documents

Question 37

Completeness tests for _____

Answer 37

Understatement

Question 38

Existence tests for ____

Answer 38

Overstatement