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| Chapter 9
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| Multiple choice questions
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Try the following questions to test your knowledge of this chapter. Once you have answered the questions, click on 'Submit Answers for Grading' to get your results. This activity contains 20 questions.
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That transactions and events have been recorded in the correct accounting period is what management assertion?
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Which of the following is a procedure to verify the completeness of management information on related parties?
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Which of the following matters is not ordinarily included in a management representation letter?
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The valuation assertion means:
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Which or the following characteristics is not a measure of the appropriateness of audit evidence?
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Which of the following is an audit standard of proof?
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If the auditor has determined that an assessed risk of material misstatement at the assertion level is a significant risk, the auditor should:
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What is characteristic of performing substantive procedures at an interim date?
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The most reliable form of audit evidence is:
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The following is a characteristic of tests of balances:
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Which of the following statements is not true of the search for unrecorded liabilities?
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ISA 330 states that the objective of the auditor is to obtain ___________ regarding the ___________, through designing and implementing appropriate responses to those risks.
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The nature of an audit procedure refers to:
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Which of the following is not an overall response to address the assessed risks of material misstatement?
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The auditor may respond to an ineffective control environment by:
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Which of the following is not true of tests of controls?
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In designing and performing tests of controls, the auditor must do all the following except:
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Which of the following statements about substantive procedures is not true?
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Unlike legal evidence, audit evidence does not have to be _________ to be useful. Ordinarily, the auditor finds it necessary to rely on audit evidence that is persuasive rather than _________ and will often seek audit evidence from different sources or of a different nature to support the same assertion. What is
the proper one word (or phrase) for both blanks?
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Which of the following is not true of audit evidence obtained from previous audits?
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Answer choices in this exercise appear in a different order each time the page is loaded.
What should be included in a management representation letter?
Contents of a Management Representation Letter
All financial records have been made available to the auditors. All board of directors minutes are complete. Management has made available all letters from regulatory agencies regarding financial reporting noncompliance. There are no unrecorded transactions.
Which of the following matters is not ordinarily included in a management representation letter?
Which of the following matters is not ordinarily included in a management representation letter? Disclosure of compensating balances and other arrangements involving restrictions on cash balances.
Which of the following matters most likely would be included in a management representation letter?
Which of the following matters will an auditor most likely include in a management representation letter? Management's acknowledgment of its responsibility to detect employee fraud.
What is contained in the letter of representation?
The Letter of Representations is a letter written from the Association to its accountant representing that the financial statements for the time period covered by the engagement are the responsibility of "management".