Quiz (September 13, 2021)

Question 1

The objective of the ordinary audit of financial statements is the expression of an opinion on the accuracy of the statement of financial position and the statement of comprehensive
income. T or F?

Answer 1

FALSE

Fairness

Question 2

Assertion that all transactions that should have been recorded are included in the financial statements.

Answer 2

COMPLETENESS

Question 3

Examination of records, documents or tangible assets.

Answer 3

INSPECTION

Question 4

Seeking of information from knowledgeable persons inside or outside the entity

Answer 4

INQUIRY

Question 5

Assertion that assets, liability and equity interest are included in the financial statements at appropriate amounts and any resulting valuation or allocation adjustments are appropriately recorded.

Answer 5

VALUATION AND ALLOCATION

Question 6

Occurrence relates to whether the amounts in accounts occurred in the proper year. T or F?

Answer 6

FALSE

Cutoff

Question 7

The auditor’s objectives follow and are closely related to management assertions. T or F?

Answer 7

TRUE

Question 8

Auditors accumulate evidence to defend themselves in the event of lawsuit. T or F?

Answer 8

FALSE

Question 9

The audit objectives and evidences remain the same from audit to audit. T or F?

Answer 9

FALSE

Question 10

An assertion that the transactions that have been recorded have occurred and pertain to the entity.

Answer 10

OCCURRENCE

Question 11

The agreed terms of the engagement would need to be recorded in _______________________

Answer 11

ENGAGEMENT LETTER

Question 12

Transactions and events have been recorded in proper accounts.

Answer 12

CLASSIFICATION

Question 13

An assertion that the amounts have been recorded appropriately.

Answer 13

ACCURACY

Question 14

Audit procedures designed to detect material misstatements in the financial statements.

Answer 14

SUBSTANTIVE TESTS

Question 15

Transactions have been recorded in the correct accounting period.

Answer 15

CUT-OFF

Question 16

The checking of the mathematical accuracy of documents and records.

Answer 16

RECALCULATION

Question 17

Assertion that the entity that holds or controls the rights to assets and liabilities are the obligations of the entity.

Answer 17

RIGHTS AND OBLIGATIONS

Question 18

An assertion that all assets, liabilities and equity interests exist.

Answer 18

EXISTENCE

Question 19

Looking at a process or procedure being performed by others.

Answer 19

OBSERVATION

Question 20

A response to an inquiry to corroborate information contained in the accounting records.

Answer 20

CONFIRMATION