Auditing & Attestation Mini Exam 22 — AUD — Auditing & Attestation Mini Exams

Questions in this quiz (10)

1. Which of the following is a requirement for audit documentation under AICPA standards?

   • It must be retained for at least 5 years
   • It must be prepared using a standardized template
   • It must include management’s certification
   • It must be approved by the audit committee

2. An auditor is performing a confirmation of cash balances with a bank. Which assertion is primarily being tested?

   • Existence
   • Completeness
   • Valuation
   • Presentation

3. Which of the following is an example of audit evidence obtained through recalculation?

   • Reviewing bank statements
   • Observing inventory counts
   • Recomputing interest expense
   • Confirming balances with third parties

4. An auditor is reviewing a client’s allowance for doubtful accounts. Which assertion is primarily being tested?

   • Existence
   • Completeness
   • Valuation
   • Rights and obligations

5. Which of the following is a key consideration when evaluating the appropriateness of audit evidence?

   • The quantity of evidence only
   • The cost of obtaining the evidence
   • The relevance and reliability of the evidence
   • The client’s preference

6. An auditor is confirming accounts payable balances with vendors. Which assertion is primarily being tested?

   • Existence
   • Completeness
   • Valuation
   • Rights and obligations

7. Which of the following is a key requirement for audit workpapers?

   • They must include the client’s internal policies
   • They must support the auditor’s conclusions
   • They must be reviewed by external regulators
   • They must be signed by management

8. An auditor is observing a client’s inventory count. Which of the following is NOT a primary objective of this procedure?

   • Verifying physical existence
   • Assessing count procedures
   • Determining ownership rights
   • Evaluating valuation methods

9. Which of the following is an example of audit evidence obtained through inquiry?

   • Confirming balances with customers
   • Observing inventory procedures
   • Asking management about internal controls
   • Inspecting purchase invoices

10. An auditor is evaluating the reliability of evidence obtained from a third-party confirmation. Which factor would most increase reliability?

    • The response is received electronically
    • The client prepared the confirmation
    • The confirming party is independent
    • The response is received quickly