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2/26/15
Auditing
Professor Fuerman
Chapter 5 quiz
1.
Which of the following is an essential factor in evaluating the
sufficiency of evidence? The evidence must
A.
Be well documented and cross-referenced in the audit
documents.
B.
Be based on sources that are considered reliable.
C.
Bear a direct relationship to the audit assertion.
D. Be persuasive enough to enable the auditor to form an
opinion.
2.
Tracing is used primarily to test which of the following
assertions about classes of transactions?
A.
Occurrence.
B.
Completeness.
C.
Cutoff.
D. Classification.
3.
Vouching is used primarily to test which of the following
assertions about classes of transaction?
A.
Occurrence.
B.
Completeness.
C.
Authorization.
D. Classification.
4.
In designing written audit programs, an auditor should plan
specific audit procedures to test
A.
Timing of audit procedures.
B.
Cost-benefit of gathering evidence.
C.
Selected audit techniques.
D. Management assertions.

5.
Of the following, which is the least persuasive type of audit
evidence?
A.
Documents mailed by outsiders to the auditor.
B.
Correspondence between the auditor and third party
vendors.
C.
Copies of company sales invoices inspected by the auditor.
D. Computations made by the auditor.
6.
The permanent (continuing) file of an auditor's working
papers most likely would include copies of the
A.
Bank statements.
B.
Debt agreements.
C.
Lead schedules.
D. Attorney's letters.
7.
the
A.
B.
C.
D.

Audit documentation prepared on audits of public entities is

property of the
Shareholders.
Auditor.
Management of the entity being audited.
SEC.

8.
You are auditing a store that sells merchandise. Some of the
store merchandise is held on consignment. Which account
balance assertion for inventory should you be most concerned
about verifying?
A.
Existence or occurrence.
B.
Completeness.
C.
Rights and obligations.
D. Valuation or allocation.
9.
Which of the following best describes the primary purpose of
audit procedures?
A.
To detect all errors or fraudulent activities.
B.
To comply with generally accepted accounting principles.
C.
To gather corroborative evidence about management's
assertions.
D. To verify the accuracy of the balance sheet account
balances.

10. Analytical procedures are

A.
Never required.
B.
Required for planning, substantive testing, and overall
review of the financial statements.
C.
Required for planning and overall review of the financial
statements.
D. Required during planning only.