Audit Evidence and Management Assertions Quiz

Posted on Jan 12, 2026 in Other subjects

Audit Evidence and Management Assertions

  1. A confirmation is used to: verify a representation using information from a third party.
  2. In testing plant and equipment balances, an auditor may physically inspect new additions listed on the summary of plant and equipment transactions for the year. This procedure is designed to obtain evidence concerning management’s assertions about account balances, and specifically, which assertion? Existence.
  3. Which assertions may be tested for the “transactions and events, and related disclosures” category of management assertions? Occurrence, completeness, accuracy, cutoff, classification, and presentation.
  4. Tracing is used primarily to test which of the following assertions about classes of transactions? Completeness.
  5. Vouching is used primarily to test which of the following assertions about classes of transaction? Occurrence.
  6. In determining whether transactions have been recorded, the direction of the audit testing should start from the: original source documents.
  7. Of the following, which is the least reliable type of audit evidence? Asking the controller about an end-of-period adjustment.
  8. Audit documentation is the principal record of the audit and provides the principal support for the representations in the auditor’s report. Because of this, audit documentation should do all of the following except for: support the audit firm’s human resource department in employee retention decisions.
  9. Audit documentation prepared on audits of public entities is the property of the: auditor.
  10. Which of the following statements is generally correct about the appropriateness of audit evidence? The more effective the system of internal control, the more assurance it provides about the reliability of the accounting data and financial statements.
  11. Your audit client is under intense pressure to meet an earnings target. Which assertion related to classes of transactions are you most concerned with for transactions within the purchasing process? Completeness.
  12. An example of an analytical procedure is the comparison of: financial information with similar information regarding the industry in which the entity operates.
  13. Analytical procedures used in planning an audit should focus on identifying: areas that may represent specific risks relevant to the audit.
  14. Which of the following statements concerning audit evidence is correct? The measure of the reliability of audit evidence lies in the auditor’s judgment.
  15. 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? Rights and obligations.
  16. Of the following, the most reliable type of evidence typically is: reperformance.
  17. Which of the following types of documentary evidence should the auditor consider to be the most reliable? Confirmation of an account payable balance mailed by and returned directly to the auditor.
  18. Based on conversations with the owner-manager of an audit client, the auditor ascertained that the company’s primary motivation is to avoid paying income taxes. Based on this motivation, which account balance assertion for ending inventory will the auditor be most concerned about verifying? Completeness.
  19. All audit documentation should have a heading, which includes: all of these.