Which of the following would be a consideration in planning an auditor's sample for a test of controls?

Question 1 options:

A)	The auditor's allowable risk of assessing control risk is too high.

B)	Preliminary judgments about materiality levels.

C)	The level of detection for the account.

D)	The auditor's allowable risk of assessing control risk is too low.

Question 2 (10 points)

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Which of the following documents initiates a purchase transaction:

Question 2 options:

A)	purchase manifest

B)	purchase order

C)	purchase authorization

D)	purchase requisition

Question 3 (10 points)

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The key assumption applicable to statistical audit sampling is that

Question 3 options:

A)	the auditor may pinpoint a population value without looking at all of the items in the population

B)	reasonably close predications may be made about a population based on a sample

C)	the auditor may eliminate risk from reviewing only a portion of the items in the population

D)	it eliminates the need for audit judgment

Question 4 (10 points)

An auditor reviews credit ratings of customers with accounts receivable that are past due. The auditor is most likely reviewing this evidence to verify

Question 4 options:

A)	presentation and disclosure

B)	valuation or allocation

C)	existence or occurrence

D)	rights and obligations

Question 5 (10 points)

In May 20X3, an auditor reissues the auditor's report on the 20X1 financial statements at a continuing client's request. The 20X1 financial statements are not restated and the auditor does not revise the wording of the report. The auditor should

Question 5 options:

A)	Use the current-period auditor's report date on the reissued report.

B)	Use the original report date on the reissued report.

C)	Use the release date of the reissued report

D)	Dual date the reissued report.

Question 6 (10 points)

Of the four factors that determine the initial sample size in attributes sampling (population size, tolerable exception rate, acceptable risks of assessing control risk too low, and expected population exception rate), which factors has the least effect on sample size?

Question 6 options:

a)	Population size

b)	Expected population exception rate

c)	Tolerable exception rate

d)	Acceptable risk of assessing control risk too low.

Question 7 (10 points)

Which of the following audit procedures most likely would assist an auditor in identifying conditions and events that may indicate substantial doubt about an entity's ability to continue as a going concern?

Question 7 options:

A)	Reading the minutes of meetings of the stockholders and the board of directors.

B)	Comparing the market value of property to amounts owed on the property.

C)	Inspecting title documents to verify whether any assets are pledged as collateral.

D)	Reviewing lease agreements to determine whether leased assets should be capitalized.

Question 8 (10 points)

A client has disposed of several pieces of manufacturing equipment at a significant gain. This raises question as to which assertion in regard to property, plant, and equipment?

Question 8 options:

A)	Existence.

B)	Rights and obligations.

C)	Completeness.

D)	Valuation and allocation.

Question 9 (10 points)

An auditor prepares an analysis of the repair and maintenance expense account to consider if any items should be classified as capital expenditures. This procedure would be most applicable to the audit objective of

Question 9 options:

A)	verifying that the fixed assets are complete

B)	verifying that the company owns its fixed assets

C)	verifying that the repairs exist

D)	verifying that the repairs are complete

Question 10 (10 points)

The auditor selects a sample of shipping documents to determine whether bills have been sent for the goods shipped. This test would satisfy the audit objective of

Question 10 options:

A)	presentation and disclosure

B)

existence

C)

valuation

D)	completeness