Wrong Quiz Answers

Question 1

The audit objective that all transactions are recorded in the proper account is related most closely to which one of the ASB transaction assertions?
A. Completeness
B. Accuracy
C. Occurrence
D. Classification

Answer 1

D. Classification

Question 2

A vendor's invoice received and held by the client would be considered what type of evidence?
A. External-internal
B. Internal
C. External
D. Written representation

Answer 2

A. External-internal

Question 3

The standard auditors’ report refers to standards of the PCAOB and GAAP in which paragraph?
A. Standards of the PCAOB: Introductory and scope; GAAP: Opinion only
B. Standards of the PCAOB: Introductory only; GAAP: Scope and opinion
C. Standards of the PCAOB: Scope only; GAAP: Opinion only
D. Standards of the PCAOB: Introductory only; GAAP: All paragraphs

Answer 3

C. Standards of the PCAOB: Scope only; GAAP: Opinion only

Question 4

The auditors’ responsibility to express an opinion on the financial statements is
A. implicitly represented in the auditors’ standard report.
B. explicitly represented in the opinion paragraph of the auditors’ standard report.
C. explicitly represented in the scope paragraph of the auditors’ standard report.
D. explicitly represented in the introductory paragraph of the auditors’ standard report.

Answer 4

D. explicitly represented in the introductory paragraph of the auditors’ standard report.

Question 5

Which of the following information would not be included in the auditors’ standard report?
A. An opinion on the entity’s financial statements
B. A description of the nature of an audit
C. An indication that all necessary disclosures have been presented
D. The names of the financial statements audited

Answer 5

C. An indication that all necessary disclosures have been presented

Question 6

Errors in data processed in a batch computer system may not be detected immediately because
A. transaction trails in a batch system are available for only a limited period of time.
B. random errors are more likely in a batch system than in an online system.
C. there are time delays in processing transactions in a batch system.
D. errors in some transactions cause rejection of other transactions in the batch.

Answer 6

C. there are time delays in processing transactions in a batch system.

Question 7

Management’s responsibility in a computer system would not include
A. ensuring that the documentation of the system is complete and up to date.
B. making computer resources and knowledgeable personnel available for questions.
C. assessing the control risk.
D. maintaining a system of transaction processing that includes an audit trail.

Answer 7

C. assessing the control risk.