Question Details

The purpose of tests of controls is to provide reasonable assurance 



1.	In which stage(s) of an audit are analytical procedures not performed?
	a.	In the planning stage.
	b.	In the test of controls stage.
	c.	In the completion stage.
	d.	In conjunction with tests of transactions and tests of details of balances.
	
2.	Tests of controls may include which of the following types of evidence?
	
		Reperformance		Observation
	a.	Yes		Yes
	b.	No		No
	c.	Yes		No
	d.	No		Yes
	
3.	The purpose of tests of controls is to provide reasonable assurance that the:
	a.	accounting treatment of transactions and balances is valid and proper.
	b.	internal control procedures are functioning as intended.
	c.	entity has complied with GAAP disclosure requirements.
	d.	entity has complied with requirements of quality control.
	
4.	In the context of an audit of financial statements, substantive tests are audit procedures that:
	a.	may be eliminated under certain conditions.
	b.	are designed to discover significant subsequent events.
	c.	may be either tests of transactions, tests of balances, or analytical tests.
	d.	will increase proportionately with the auditor- reliance on internal control.
	
5.	Which of the following is not useful for obtaining an understanding of internal controls?
	a.	Make inquiries of the client- personnel.
	b.	Examine documents and records.
	c.	Read industry trade magazines.
	d.	Observe client activities and operations.





Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help