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

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Source: Original
Topic: Professional Skepticism
   
19. To be proficient as an auditor, a person must first be able to accomplish which of these tasks in a decision-making process? 
 


 
A.  Identify audit evidence relevant to the verification of assertions management makes in its unaudited financial statements and notes.
 
B.  Formulate evidence-gathering procedures (audit plan) designed to obtain sufficient, competent evidence about assertions management makes in financial statements and notes.
 
C.  Recognize the financial assertions made in management's financial statements and footnotes.
 
D.  Evaluate the evidence produced by the performance of procedures and decide whether management's assertions conform to generally accepted accounting principles and reality.
 
AACSB: Analytic
AICPA: BB Legal
AICPA: FN Research
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 3 Hard
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
 
 
20. Which of the following is an underlying condition that in part creates the demand by users for reliable information? 
 


 
A.  Economic transactions that are numerous and complex
 
B.  Decisions are time-sensitive
 
C.  Users separated from accounting records by distance and time
 
D.  Financial decisions that are important to investors and users
 
E.  All of these
 
AACSB: Analytic
AICPA: BB Industry
AICPA: FN Research
Accessibility: Keyboard Navigation

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