MCQ

How might an auditor make a judgement about the validity and usefulness of an experts report? (Several choices may be correct.)

a)Corroborate information with other evidence gathered

b) Ask management to determine the validity and usefulness of the report

c)Hire another expert to assess the validity and usefulness of the report

d)Assess the consistency of assumptions made

e)Re-perform some calculations

What should be included on every working paper? (Several choices may be correct.)

a)Fiscal year end

b)Initials of preparer and date

c)Initials of reviewer and date

d)Audit opinion to be issued

e)Company name

Which of the following are examples of the completeness assertion? (Several choices may be correct.)

A. All payroll-related accruals at year end are recorded.

B. The accounts receivable sub-ledger agrees to the general ledger control account.

C. All sales were recorded in the correct period.

D. There is no inventory on consignment.

E. Purchases made after year end were recorded in the prior year.

F. There are 10 delivery vans in the parking lot.

G. There are no undisclosed contingent liabilities.