1. Auditors must confirm that the __________ of Property, Plant, and Equipment agree with the general ledger.
documents
detail ledgers
controls
serial numbers
asset numbers
2. After obtaining an understanding of the client and its environment, auditors must identify the __________ risks related to the accounts.
inherent
fraud
detection
error
audit
3. Which of the following would the auditor NOT be testing for by examining lease agreements?
existence
presentation
valuation
rights
estimates
4. Auditors test effectiveness of controls to ensure they can justify their planned levels of __________ risk.
inherent
fraud
detection
control
effective
5. Auditors are often concerned with the __________ of cash, as this is where most misstatements occur.
overstatement
understatement
inventory
existence
disclosure