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Auditing & Assurance Services 7th Edition by Timothy Louwers Test bank

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AACSB: Analytic
AICPA: BB Legal
AICPA: FN Research
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 01-03 Describe and define the assertions that management makes about the recognition; measurement; presentation; and disclosure of the financial statements and explain why auditors use them as the focal point of the audit.
Source: Original
Topic: Management's Financial Statement Assertions
 
 
17. If an auditor is performing procedures related to the information that is contained in the client's pension footnote, he/she is most likely obtain evidence concerning management's assertion about 
 


 
A.  rights and obligations.
 
B.  existence.
 
C.  valuation.
 
D.  presentation and disclosure.
 
AACSB: Analytic
AICPA: BB Legal
AICPA: FN Research
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 01-03 Describe and define the assertions that management makes about the recognition; measurement; presentation; and disclosure of the financial statements and explain why auditors use them as the focal point of the audit.
Source: Original
Topic: Management's Financial Statement Assertions
 
 
18. Which of the following questions would be inappropriate for an auditor to ask a client when exhibiting an appropriate level of professional skepticism while completing an audit procedure related to the internal control system? 
 


 
A.  What can go wrong in this process?
 
B.  Which of your employees is a fraudster?
 
C.  What else is important to know about this process?
 
D.  What happens when a key employees goes on vacation?
 
AACSB: Analytic
AICPA: BB Legal
AICPA: FN Research
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-04 Define professional skepticism and explain its key characteristics.

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