• Arizona State University, West Campus
• ACC 450

Quiz 1

Question 1

1 / 1 pts

Which of the following are true about auditing?

It is an independent service performed by certified professionals

It is performed to provide a reasonable assurance on financial statements prepared by

management of a company

It is part of a broader set of services called attestation services

All of the above

Yep, all of them are true. Good job! Review pages 1-4 of the textbook for information on

auditing. Now, go back to work.

Question 2

0 / 1 pts

What does existence and occurrence assertion claim?

That reported assets, liabilities, and equity actually exist and reported transactions have

actually occurred.

That the company reported everything in the financial statements that it should have

reported

That all the reported financial statement items are reported at the appropriate amounts

with appropriate valuation and allocation adjustments

None of the above

One of the above is the right answer. Try again. Review the definitions of each assertion on

page 3 of the textbook.

Question 3

1 / 1 pts

What does completeness assertion claim?

That reported assets, liabilities, and equity actually exist and reported transactions have

actually occurred.

That the company reported everything in the financial statements that it should have

reported

Yep. This is close to the book's definition. Good job! Review the definitions of each assertion on

page 3 of the textbook. Now, go back to work.

That all the reported financial statement items are reported at the appropriate amounts

with appropriate valuation and allocation adjustments

None of the above

Question 4

1 / 1 pts

What is valuation, accuracy, and allocation assertion?

That reported assets, liabilities, and equity actually exist and reported transactions have

actually occurred.

That all the reported financial statement items are reported at the appropriate amounts

with appropriate valuation and allocation adjustments

Yep, this is close to the book's definition. Good job! Review the definitions of each assertion on

page 3 of the textbook. Now, go back to work.

That the company actually has the right to benefit fully from the reported assets and is

fully responsible for the reported liabilities

None of the above

Question 5

1 / 1 pts

What is rights and obligations assertion?

That reported assets, liabilities, and equity actually exist and reported transactions have

actually occurred.

That all the reported financial statement items are reported at the appropriate amounts

with appropriate valuation and allocation adjustments

That the company actually has the right to benefit fully from the reported assets and is

fully responsible for the reported liabilities

Yep, this is close to the book's definition. Good job! Review the definitions of each assertion on

page 3 of the textbook. Now, go back to work.

None of the above

Question 6

0 / 1 pts

What is cut-off assertion?

That reported assets, liabilities, and equity actually exist and reported transactions have

actually occurred.

That all the reported financial statement items are reported at the appropriate amounts

with appropriate valuation and allocation adjustments

That the company recorded the transactions underlying all of the reported financial

statement items in the appropriate period.

None of the above

One of the above is correct. Review the definitions of each assertion on page 3 of the textbook.

Try again.

Question 7

0 / 1 pts

What is presentation and disclosure assertion?

That the company presented all of the amounts and disclosures in a way that is clearly

described and appropriate

That all the reported financial statement items are reported at the appropriate amounts

with appropriate valuation and allocation adjustments

That the company recorded the transactions underlying all of the reported financial

statement items in the appropriate period.

None of the above

One of the above is correct. Review the definitions of each assertion on page 3 of the textbook.

Try again.

Question 8

0 / 1 pts

Which of the following is not a typical career path for auditors?

Auditor at a firm or an internal auditor at a company

Entrepreneur

Lots of auditors become entrepreneurs sooner or later. Quite typical. Review pages 5-9 of the

textbook for typical career paths for auditors.

Corporate accountant

All of the above are typical career paths for auditors

Question 9

1 / 1 pts

Which of the following is true about the audit profession?

It is one of the professions most likely to be taken over by AI

It is founded upon an assumption that in the right circumstances anyone can lie

Yep. That's a fundamental assumption of the profession as stated on page 11 of the textbook.

Good job! Review pages 11-13 for information about how technology affects the auditing

profession. Now go back to work.

It is very unlikely to utilize any AI solutions for relatively complex audit tasks such as

analyzing contracts

It uses drones to deliver audit opinions to clients

Question 10

1 / 1 pts

Which of the following is true about certifications in the field of auditing?

Certifications are not very useful in auditing and will likely cease to exist soon

It is strongly advisable for an auditor to get a CPA license

Good job! Auditors without CPA licenses are like lawyers who haven't passed their bar exam.

Review pages 14-15 of the textbook for information on the CPA license. Now go back to work.