1.

What does vouching mean in the context of verifying the ownership of assets?

a.

Having someone vouch for the custodian of assets.

b.

Studying the purchase and sale of assets patterns historically.

c.

Doing a physical inspection of assets to vouch for their existence.

d.

Studying title documents as evidence of ownership.

2.

If lower control risk is assessed for the cash balance,

a.

More substantive procedures will be performed.

b.

More control testing will be required.

c.

No substantive procedures will be performed.

d.

Limited substantive procedures will be performed.

3.

The best opportunity for auditors to detect material misstatements in inventory is to

a.

Recalculate cost of sales.

b.

Physically observe the auditee's inventory count.

c.

Inquiry of the warehouse manager.

d.

Perform analytical procedures.

4.

An auditor conducts a search for unrecorded liabilities by examining client reconciliations of suppliers statements to Accounts Payable control account and payments from the bank accounts made for a period after year-end. This provides evidence for which audit assertion?

a.

Completeness.

b.

Presentation.

c.

Ownership.

d.

Valuation.