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

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D. Compliance with company policies

24.

In order to be considered as external auditors with respect to government agencies, GAO auditors must be

A.	organizationally independent.

B.	empowered as the accounting and auditing agency by the U.S. Congress.

C.	funded by the federal government.

D.	guided by standards similar to GAAS.

25.

Which of the following is the essential purpose of the audit function?

A.	Detection of fraud

B.	Examination of individual transactions to certify as to their validity

C.	Determination of whether the client's financial statement assertions are fairly state

D.	Assurance of the consistent application of correct accounting procedures

26.

The audit objective that all the transactions and accounts presented in the financial statements represent real assets, liabilities, revenues, and expenses is related most closely to which of the PCAOB assertions?

A.	Existence or occurrence

B.	Rights and obligations

C.	Completeness

D.	Presentation and disclosure

27.

The audit objective that all transactions are recorded in the proper period is related most closely to which of the Audit Standards Board (ASB) transaction assertions?

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

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