Chapter 01 Auditing and Assurance Services Answer Key
Multiple Choice Questions
The audit objective that all transactions and accounts that should be presented in
the financial statements are in fact included is related to which of the PCAOB
According to PCAOB Auditing Standard
No. 5 (AS 5), the auditor should identify
significant accounts and disclosures and
their relevant assertions. Which of the
following financial statement assertions
is not explicitly identified in AS 5?
CHAP 1 QUIZ
1. When testing the completeness assertion for a liability account, an auditor ordinarily works
A. trial balance to the subsidiary ledger.
B. financial statements to the potentially unrecorded items.
C. accounting records to the
A. originates outside of the client's system but has been received and processed
by the client.
B. consists of representations made by the client's officers, directors, owners, and
C. consists of documents that are prod
CH 7- QRD 1-10; Ex 7-1; P7-2 & 7-3
1. Why are general capital assets not recorded in governmental funds?
2. A state incurs interest on funds used while a highway was under construction. How will this
interest be accounted for on the states (a) capital pro
REPORTS ON AUDITED FINANCIAL STATEMENTS
AND SPECIAL REPORTING ISSUES
Answers to Review Questions
18-1 An auditor is associated with financial statements when he or she has consented to
the use of his or her name in a document such as an annual