Auditing & Attestation Mini Exam 21 — AUD — Auditing & Attestation Mini Exams

Questions in this quiz (10)

1. An auditor is reviewing a client’s bank confirmation. Which assertion is primarily being tested?

   • Existence
   • Completeness
   • Valuation
   • Presentation

2. When is it appropriate for an auditor to rely on written representations from management as audit evidence?

   • When they are supported by other audit evidence
   • When they are the only evidence available
   • When they are signed by senior management
   • Always, as they are sufficient by themselves

3. Which of the following procedures is most effective for testing the valuation assertion for accounts receivable?

   • Confirming receivable balances with customers
   • Reviewing the aging schedule and assessing allowance estimates
   • Observing the billing process
   • Tracing sales invoices to shipping documents

4. An auditor is evaluating the reliability of evidence obtained from external confirmations. Which factor is most important in this evaluation?

   • The format of the confirmation request
   • The independence of the confirming party
   • The speed of the response
   • The client’s involvement in the process

5. Which of the following is NOT typically included in audit workpapers?

   • Audit procedures performed
   • Evidence obtained
   • Auditor’s conclusions
   • Management’s future business plans

6. During an audit, the auditor does not receive a response to a confirmation request for a material receivable. What should the auditor do?

   • Assume the balance is correct
   • Perform alternative procedures
   • Issue a qualified opinion
   • Ignore the lack of response

7. Which of the following best describes “appropriate audit evidence”?

   • Evidence obtained from internal sources only
   • Evidence that is both relevant and reliable
   • Evidence that is documented in workpapers
   • Evidence that supports management’s assertions

8. An auditor is reviewing lease agreements to verify accounting treatment. This procedure is an example of:

   • Inspection
   • Observation
   • Inquiry
   • Recalculation

9. Which of the following is a key consideration when planning an inventory observation?

   • The client’s profitability
   • The timing and location of the count
   • The auditor’s experience
   • The audit fee

10. An auditor is evaluating audit evidence obtained from internally generated reports. Which factor would most likely reduce the reliability of this evidence?

    • The reports are reviewed by management
    • The reports are generated from systems with weak controls
    • The reports are used for internal decision-making
    • The reports are consistent with prior periods