8.  While observing the physical inventory for finished goods being performed by personnel at the Law Manufacturing Company, the auditor, Crouch, CPA, selected items for test counts and traced these items to Law’s inventory listing.  This procedure most likely obtained evidence concerning which assertion embodied in Law’s financial statements?

37.  Which of the following statements concerning evidential matter is correct?

41.  The accounting firm Adkins & Agee, LLP has completed fieldwork for the audit of Balogh & Company and is now deciding what should be the appropriate form of audit opinion.  The financial statements of Balogh & Company contain a departure from generally accepted accounting principles (GAAP) because, due to unusual circumstances, the statements would otherwise be misleading.  The engagement partner on the audit from Adkins & Agee, LLP agrees that the departure from GAAP is the preferred accounting treatment.  What form of audit opinion should the auditor issue for the current audit of Balogh & Company?

28.  An auditor concludes that a client’s illegal act, which has a material effect on the financial statements, has not been properly accounted for or disclosed.  Depending on the materiality of the effect on the financial statements, the auditor should express either a(n):

46.  Kristina, a staff auditor with Vaden & Waibel, CPAs, observed a client’s annual physical inventory, recorded test counts for several items, and noticed that certain test counts were lower than the recorded quantities in the client’s perpetual inventory records.  This situation could be the result of the client’s failure to record:

25.  In determining whether transactions recorded by the client have occurred, the direction of the audit testing should be from the:

14.  The objective of tests of details of transactions performed as tests of controls is to:

2.  J. Mitchell, CPA, is conducting the 2020 audit of Terzo, Inc., a publicly traded company.  Part of Mitchell’s year-end sales cutoff test has been designed to detect sales that were recorded in 2020 but the products were not shipped until after the 2020 year-end. This part of Mitchell’s cutoff test has been designed to obtain assurance about which assertion in Terzo’s 2020 financial statements?

25.  In determining whether transactions recorded by the client have occurred, the direction of the audit testing should be from the:

36.  Which of the following sample planning factors would influence the sample size for a substantive test of details for a specific account?      I.  Expected Amount of Misstatements.     II.  Measure of Tolerable Misstatement.