Auditing and Assurance Services Chapter 13 Test bank 1 Mr.Ahmed Atef Khafaga 1) Shown below (1 through 5) are the five types of tests which auditors use to determine whether financial statements are fairly stated. Which three are substantive tests? 1. risk assessment procedures 2. tests of controls 3. tests of transactions 4. analytical procedures 5. tests of details of balances A) 1, 2, and 3. B) 3, 4, and 5. C) 2, 3, and 5. D) 2, 3, and 4. Answer: B 2) Collectively, procedures performed to obtain an understanding of the entity and its environment, including internal controls, represent the auditor's: C 3) Which of the following would not be considered further audit procedures? D 4) Which of the following procedures would most likely be performed in response to the auditor's assessment of the risk of monetary misstatements in the financial statements? C 5) Which of the following further audit procedures are used to determine whether all six transaction related audit objectives have been achieved for each class of transactions? A) tests of controls B) risk assessment procedures C) substantive tests D) preliminary analytical procedures Answer: C
Auditing and Assurance Services Chapter 13 Test bank 2 Mr.Ahmed Atef Khafaga 6) You are auditing Rodgers and Company. After performing substantive analytical procedures you conclude that, for the accounts tested, the client's balance appears reasonable. This may indicate that: B 7) The purpose of tests of controls is to provide reasonable assurance that the: B
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- Fall '16
- taher refaat
- Accounting, Atef Khafaga