Auditing 2

Auditing and Assurance Services, 14e (Arens)
Chapter 24 Completing the Audit

Learning Objective 24-1

1) Auditors often integrate procedures for presentation and disclosure objectives with:
A)
Tests for planning objectives
Tests for balance-related objectives
Yes
Yes

B)
Tests for planning objectives
Tests for balance-related objectives
No
No

C)
Tests for planning objectives
Tests for balance-related objectives
Yes
No

D)
Tests for planning objectives
Tests for balance-related objectives
No
Yes

Answer: D
Terms: Procedures for presentation and disclosure objectives
Diff: Easy
Objective: LO 24-1
AACSB: Reflective thinking skills

2) The auditor's primary concerns relative to presentation and disclosure-related objectives is:
A) accuracy.
B) existence.
C) completeness.
D) occurrence.
Answer: B
Terms: Presentation and disclosure-related objectives
Diff: Easy
Objective: LO 24-1
AACSB: Reflective thinking skills

Learning Objective 24-2

1) If a potential loss on a contingent liability is remote, the liability usually is:
A) disclosed in footnotes, but not accrued.
B) neither accrued nor disclosed in footnotes.
C) accrued and indicated in the body of the financial statements.
D) disclosed in the auditor's report but not disclosed on the financial statements.
Answer: B
Terms: Contingent liability; remote
Diff: Easy
Objective: LO 24-2
AACSB: Reflective thinking skills
2) A commitment is best described as:
A) an agreement to commit the firm to a set of fixed conditions in the future.
B) an agreement to commit the firm to a set of fixed conditions in the future that depends on company profitability.
C) an agreement to commit the firm to a set of fixed conditions in the future that depends on current market conditions.
D) a potential future obligation to an outside party for an as yet to be determined amount.
Answer: A
Terms: Commitments
Diff: Easy
Objective: LO 24-2
AACSB: