Comprehensive Review in Accounting
|AUDITING THEORY |
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|Comprehensive Reviewer |
|Preliminary Grading Period |
SET 1
1. An independent financial statement audit is important to financial statements users because it: a. Objectively examines and reports on special-purpose financial statements. b. It reduces cost of capital c. Objectively examines and reports on general-purpose financial statements. d. Objectively reports on the accuracy of information in the financial statements.
2. In relation to auditing, which of the following is a correct phrase? a. Auditing communicates results to management. b. Auditing involves obtaining evidence regarding action and events. c. Auditing evaluates assertions regarding evidence. d. Auditing subjectively obtains and evaluates evidence.
3. Which of the following is not an output of an independent audit engagement? a. Management letter. b. Audit report. c. Engagement letter. d. Audited financial statements.
4. The best description of the auditor’s responsibility with respect to audited financial statement is: a. The auditor 's responsibility on fair presentation of financial statements is limited only up to the date of the audit report. b. The auditor is responsible for detecting misstatements on the financial statements. c. The responsibility over the financial statements rests with the management. d. The auditor 's responsibility is limited to the expression of
| |
|Comprehensive Reviewer |
|Preliminary Grading Period |
SET 1
1. An independent financial statement audit is important to financial statements users because it: a. Objectively examines and reports on special-purpose financial statements. b. It reduces cost of capital c. Objectively examines and reports on general-purpose financial statements. d. Objectively reports on the accuracy of information in the financial statements.
2. In relation to auditing, which of the following is a correct phrase? a. Auditing communicates results to management. b. Auditing involves obtaining evidence regarding action and events. c. Auditing evaluates assertions regarding evidence. d. Auditing subjectively obtains and evaluates evidence.
3. Which of the following is not an output of an independent audit engagement? a. Management letter. b. Audit report. c. Engagement letter. d. Audited financial statements.
4. The best description of the auditor’s responsibility with respect to audited financial statement is: a. The auditor 's responsibility on fair presentation of financial statements is limited only up to the date of the audit report. b. The auditor is responsible for detecting misstatements on the financial statements. c. The responsibility over the financial statements rests with the management. d. The auditor 's responsibility is limited to the expression of