Exam 13: Auditing Debt Obligations and Stockholders Equity Transactions

Explore all topics

As a starting point for testing capital stock and equity transactions, the auditor should review a copy of the client's articles of incorporation.

(True/False)

4.8/5

(85)

Question 21

Rights/obligations is the most relevant audit assertion associated with an inherent risk for finding stock options or warrants being granted without being properly approved.

(True/False)

4.9/5

(83)

Question 22

Which of the following is not a potential fraud related to debt obligations?

(Multiple Choice)

4.9/5

(73)

Question 23

An auditor determines that there is an inherent risk that a company has not included both the basic earnings per share and diluted earnings per share amounts in financial statements even though significant dilutive securities are part of the company's complex capital structure. This determination is most likely tied to which of the following management assertions?

(Multiple Choice)

4.8/5

(87)

Question 24

Which of the following is not a potential fraud related to stockholders' equity accounts?

(Multiple Choice)

5.0/5

(81)

Question 25

A bond premium/discount amortization spreadsheet can be used to help assure that the bond is appropriately valued and disclosed in the financial statements.

(True/False)

4.9/5

(72)

Question 26

Stockholders' equity accounts will be tested with only substantive analytical procedures.

(True/False)

4.7/5

(84)

Question 27

A starting point for substantive tests of details on debt obligations is to have the client provide a cash flow statement.

(True/False)

4.7/5

(83)

Question 28

Which of the following is not true about auditing stockholders' equity transactions?

(Multiple Choice)

4.8/5

(80)

Question 29

Valuation is a relevant assertion when auditing premiums or discounts on bonds.

(True/False)

5.0/5

(89)

Question 30

For financial statement audit purposes, when auditing debt obligations and stockholders' equity transactions, the auditor will most likely perform a substantive audit, and therefore will not perform tests of controls for the debt and equity accounts.

(True/False)

4.8/5

(86)

Question 31

Which of the following is not important documentation for substantive procedures for debt obligations?

(Multiple Choice)

4.8/5

(76)

Question 32

If there were unusual or unexpected relationships, the planned audit procedures (tests of controls, substantive procedures) would be adjusted to address the potential material misstatements.

(True/False)

4.8/5

(85)

Question 33

Which of the following would not typically be included as part of the balance sheet disclosures related to stockholders' equity?

(Multiple Choice)

4.8/5

(75)

Question 34

Which of the following is not an example of typical analytical procedures related to debt obligations?

(Multiple Choice)

4.7/5

(84)

Question 35

Which of the following would an auditor not typically perform as part of gaining an understanding of the client's controls related to debt obligations?

(Multiple Choice)

4.9/5

(75)

Question 36

Listed below are several inherent risks associated with stockholder's equity. REQUIRED: List the assertion associated with each of these.

(Essay)

5.0/5

(84)

Question 37

Which of the following statements is true regarding the appropriate audit procedures to perform for debt and stockholder's equity accounts?

(Multiple Choice)

4.8/5

(82)

Question 38

When performing a substantive analytical procedure related to interest expense, the auditor will likely not test the client's internal controls.

(True/False)

4.8/5

(72)

Question 39

Which of the following is not a substantive test of details for dividends?

(Multiple Choice)

4.8/5

(73)

Question 40

Showing 21 - 40 of 120

As a starting point for testing capital stock and equity transactions, the auditor should review a copy of the client's articles of incorporation.

Rights/obligations is the most relevant audit assertion associated with an inherent risk for finding stock options or warrants being granted without being properly approved.

Which of the following is not a potential fraud related to debt obligations?

Which of the following is not a potential fraud related to stockholders' equity accounts?

A bond premium/discount amortization spreadsheet can be used to help assure that the bond is appropriately valued and disclosed in the financial statements.

Stockholders' equity accounts will be tested with only substantive analytical procedures.

A starting point for substantive tests of details on debt obligations is to have the client provide a cash flow statement.

Which of the following is not true about auditing stockholders' equity transactions?

Valuation is a relevant assertion when auditing premiums or discounts on bonds.

For financial statement audit purposes, when auditing debt obligations and stockholders' equity transactions, the auditor will most likely perform a substantive audit, and therefore will not perform tests of controls for the debt and equity accounts.

Which of the following is not important documentation for substantive procedures for debt obligations?

If there were unusual or unexpected relationships, the planned audit procedures (tests of controls, substantive procedures) would be adjusted to address the potential material misstatements.

Which of the following would not typically be included as part of the balance sheet disclosures related to stockholders' equity?

Which of the following is not an example of typical analytical procedures related to debt obligations?

Which of the following would an auditor not typically perform as part of gaining an understanding of the client's controls related to debt obligations?

Listed below are several inherent risks associated with stockholder's equity. REQUIRED: List the assertion associated with each of these.

Which of the following statements is true regarding the appropriate audit procedures to perform for debt and stockholder's equity accounts?

When performing a substantive analytical procedure related to interest expense, the auditor will likely not test the client's internal controls.

Which of the following is not a substantive test of details for dividends?

Auditing: Integral to the Economy

The Auditors Responsibilities Regarding Fraud and Mechanisms to Address Fraud: Regulation and Corporate Governance

Internal Control Over Financial Reporting: Responsibilities of Management and the External Auditors

Professional Liability, Auditor Judgment Frameworks, and Professional Responsibilities

Professional Auditing Standards and the Audit Opinion Formulation Process

A Framework for Audit Evidence

Planning the Audit: Identifying and Responding to the Risks of Material Misstatement

Specialized Audit Tools: Sampling and Generalized Audit Software

Auditing the Revenue Cycle

Auditing Cash and Marketable Securities

Auditing Inventory, Goods and Services, and Accounts Payable: the Acquisition and Payment Cycle

Auditing Long-Lived Assets: Acquisition, Use, Impairment, and Disposal

Activities Required in Completing a Quality Audit

Audit Reports on Financial Statements

Advanced Topics Concerning Complex Auditing Judgments

Other Services Provided by Audit Firms

Filters