Could you please answer these multiple choice questions

1.If an auditor reviews the reasonableness of the depreciation expense by considering the acquisitions and disposals and comparing their calculation to the previous year's balance, they are likely gathering

• minimal evidence.
• corroborative evidence.
• persuasive evidence.
• key item evidence.

2.An auditor determines that a client is motivated to decrease its liabilities and expenses, but that the liabilities and expenses recorded are typically properly valued. Which of the following describes when the testing will likely take place?

• testing of the completeness assertion will likely be tested at year end
• testing of the valuation of the warranty liability will likely take place at year end
• the existence assertion will likely be tested at the interim audit
• the auditor will likely test both valuation and completion at the interim audit

3.Which of the following factors would most likely influence an auditor's consideration of the reliability of data when performing analytical procedures?

• If the data were developed in a computerized accounting system
• If the data were processed in an online system
• If the data were prepared in conformity with GAAP
• If the data were developed under a system with adequate controls

4.Why should an auditor 'stand back' and assess the documentation on the audit work performed on client's estimates? Select all that apply.

• assess reasonableness given contradictory evidence gathered
• ensure the exact amount of provision is properly calculated
• ensure all evidence is considered
• assess reasonableness given confirming evidence gathered
• determine if bias exists in the calculation

5.When an auditor identifies unexpected misstatements or errors, he/she will

• re-evaluate the effectiveness of internal controls and overall assessment of risk.
• plan to conduct predominately substantive tests.
• increase the level of tests of internal controls.
• none of the above.

6.Which of the following would cause the auditor to expect an increase in the company's expenses?

• union negotiated a decrease in the number of working hours for a week
• hydro company announced a rebate for all companies
• an internal audit group was hired during the year
• federal government decreased the income tax rate

7.The auditor will consider the nature of the account and the key assertions at risk when determining the number of substantive procedures to be performed. What assertion is the auditor typically most concerned with as it relates to accrued liabilities?

• presentation
• existence
• valuation
• completeness

8.If the auditor performs an analytical procedure and consequently decides to expand their substantive testing, this analytical procedure was meant to provide

• key item evidence.
• persuasive evidence.
• corroborative evidence.
• minimal evidence.

9.Which of the following is NOT a type of analytical procedure?

• vouching revenue transactions to sales invoices
• performing a break-even analysis on revenues
• comparing liquidity and profitability ratios to industry standards
• preparation of common-size financial statements

10.Jacqueline Martineau was told by her audit senior to ensure that the evidence she provided through analytical procedures was both persuasive and corroborative. Which of the following evidences are persuasive?

• When reviewing sales and commissions expense, compare sales commissions or bonuses with related sales.
• When reviewing accruals for commissions, refer to terms of agreements and payment dates.
• When reviewing trade receivables or sales, review the volatility of the customer base and compare with expectations.
• When reviewing payroll expense, compare payroll tax expenses to the annual payroll times the statutory tax rates.

11.Which of the following would cause the auditor to expect a decrease in the company's expenses? Select all that apply.

• management reduced the advertising budget
• more efficient manufacturing procedure has been implemented
• hydro company announced a rebate for all companies
• an internal audit group was hired during the year
• key employees received cell phones last year

12.Judgemental misstatements are often

• due to a difference between the auditor's and management's interpretation of an accounting policy.
• considered by management and those charged with governance as wrong.
• due to fraud.
• a result of the breakdown of controls.

13.Which of the following would be classified as a misstatement due to error or fraud? Select all that apply.

• difference in the auditor's estimate of the warranty liability with that of management
• purchase invoice was entered into the accounting system twice
• sales invoice related to November was booked in December
• the auditor determines a probable loss from a pending lawsuit should be accrued for $250,000, while management has only accrued $100,000
• cash receipt incorrectly entered into the system as $20, rather than $200

14.Which of the following could be an internal financial predictor in a regression analysis?

• rent revenue.
• average rental value in the city.
• number of units rented.
• demand for rental units.

15.Paul has decided to perform a regression analysis as a substantive analytical procedure to forecast the amount of rental revenue based on the average number of apartments rented per year and the average amount of rent charged. What are the related assertions?

• occurrence, completeness, and accuracy
• classification, existence, and accuracy
• completeness, presentation, and accuracy
• existence and completeness

16.Jeremy, CPA is performing an audit data analytic as a substantive test on accounts receivable. Jeremy is reconciling the data files to the accounting records to ensure the completeness of the data. This is part of the

• preparation of the data for the test.
• evaluation of the audit data analytic results.
• determination of the reliability and relevance of the audit data analytic.
• planning of the audit data analytic.

17.Paul has decided to perform a regression analysis as a substantive analytical procedure to forecast the amount of rental revenue based on the average number of apartments rented per year and the average amount of rent charged. What type of procedure would this be?

• substantive analytical
• test of detail
• risk assessment
• test of control

18.Jason is auditing a company's professional expenses over a three-year period. He decides to perform an ADA to determine if there is a higher risk of misstatement in this area. Which of the following questions would be considered when determining the relevance of the data to be used?

• Will the data be provided by management or gathered directly by Jason?
• Will the data provide information regarding the trend of professional expenses?
• Can the data that will be used be easily overridden by management?
• Are the data structured?

19.Which of the following tests would be classified as a substantive audit data analytic?

• ratio analysis to compare prior years to current years
• testing the authorization of purchase orders
• performing a trend analysis
• corroborating the balance in the inventory account

20.Paul decides to perform an ADA and test accounts payable and compare purchase orders with invoices received and booked. This comparison will provide evidence as to the existence of accounts payable at year end. What type of procedure is this?

• substantive analytical
• risk assessment
• test of details
• test of control

21. A company performs a ratio analysis on the prior years' financial statements to determine if the inventory turnover ratio was increasing or decreasing over time. What type of analytic is this?

• predictive
• prescriptive
• descriptive
• diagnostic

22.Peter is going to use an ADA to compare the invoices issued by a company to the cash they have received during the year. The purpose of this is to substantiate both the accounts receivable at year end and the amount of revenue during the year. For the sales account, what assertion will this test provide evidence for?

• completeness
• rights and obligations
• cut-off
• occurrence