Question 1

The auditor uses professional judgment to determine which audit procedures to perform.

Accepted Answer

A) True 
 B)False

Question 2

The auditor normally considers both underlying accounting data and corroborating information in the audit process.Underlying accounting data does not include which of the following items?

Accepted Answer

A) Evidence of controls. 
B) Minutes of meetings. 
C) Checks,invoices,and contracts. 
D) General and subsidiary ledger. 
A) Evidence of controls. 
B) Minutes of meetings. 
C) Checks,invoices,and contracts. 
D) General and subsidiary ledger.

Question 3

Individuals receiving confirmations from the auditor are asked to respond directly to the client being audited as to whether they agree or disagree with the information.

Accepted Answer

A) True 
 B)False

Question 4

For an auditor to test the existence assertion of assets,testing will be performed beginning with the recorded asset and ending with the source documents.

Accepted Answer

A) True 
 B)False

Question 5

Each of the audit procedures that an auditor could select possesses which of the following characteristics?:

Accepted Answer

A) Audit procedures take time,effort,and money. 
B) Audit procedures are difficult to perform. 
C) Audit procedures require multiple people from the firm to perform. 
D) All of the above. 
A) Audit procedures take time,effort,and money. 
B) Audit procedures are difficult to perform. 
C) Audit procedures require multiple people from the firm to perform. 
D) All of the above.

Question 6

Ulanda and Mudana,CPAs are performing an audit on McArnee,Inc.Ulanda selects a sample from certain source documents and traces them forward to the accounts payable ledger.The purpose of this test is to determine the possibility of understated liabilities.

Accepted Answer

A) True 
 B)False

Question 7

While inspecting documents,auditors should use original documents rather than copies,because copies are easy for management to falsify.

Accepted Answer

A) True 
 B)False

Question 8

Observation suffers from which of the following limitations?

Accepted Answer

A) Observation of processing is rarely unobtrusive. 
B) Observation of processing on one day does not necessarily indicate how transactions were processed on a different day. 
C) All the above. 
D) None of the above. 
A) Observation of processing is rarely unobtrusive. 
B) Observation of processing on one day does not necessarily indicate how transactions were processed on a different day. 
C) All the above. 
D) None of the above.

Question 9

The extent of procedures is affected mostly by which of the following factors?

Accepted Answer

A) The sheer volume of procedures to be applied by the auditor. 
B) The time of year in which the client takes a physical inventory in the warehouse. 
C) The auditor's judgment that misstatements are probable in certain balances. 
D) The availability of the client's staff at or near the balance sheet date. 
A) The sheer volume of procedures to be applied by the auditor. 
B) The time of year in which the client takes a physical inventory in the warehouse. 
C) The auditor's judgment that misstatements are probable in certain balances. 
D) The availability of the client's staff at or near the balance sheet date.

Question 10

Sufficient appropriate evidential matter Discuss the importance of the phrase "sufficient appropriate evidence is to be obtained..." How do auditing standards define sufficiency and appropriateness?

Accepted Answer

Audit standards states that auditors mus

Question 11

Audit documentation should include the initials or electronic signature in order to identify the audit personnel responsible for the work and the managers and partners reviewing the work.

Accepted Answer

A) True 
 B)False

Question 12

The performance of analytical procedures is often used by an auditor as a procedure to gather certain types of audit evidence.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following characteristics are not normally included in good audit documentation?

Accepted Answer

A) Initials of the person preparing and reviewing the document. 
B) An assessment of whether the test indicates the possibility of material misstatement in an account. 
C) A cross-reference. 
D) All are included in good audit documentation. 
A) Initials of the person preparing and reviewing the document. 
B) An assessment of whether the test indicates the possibility of material misstatement in an account. 
C) A cross-reference. 
D) All are included in good audit documentation.

Question 14

Analytical procedures are a type of substantive evidence.

Accepted Answer

A) True 
 B)False

Question 15

Relevance and reliability of evidence make up the appropriateness of audit evidence.

Accepted Answer

A) True 
 B)False

Question 16

Reprocessing of transactions helps establish that all valid items have been recorded.Reprocessing tests which of the following assertions?

Accepted Answer

A) Occurrence. 
B) Rights. 
C) Existence. 
D) Completeness. 
A) Occurrence. 
B) Rights. 
C) Existence. 
D) Completeness.

Question 17

The auditor utilizes the same audit program and the same procedures each year for each client in order to ensure that nothing is missed in the current year audit.

Accepted Answer

A) True 
 B)False

Question 18

The primary importance of the audit program is its guidance of the overall conduct of the audit.

Accepted Answer

A) True 
 B)False

Question 19

Audit procedures Businesses often have litigation against them that the auditor has to identify and adequately disclose.List the financial assertions that apply to Contingencies.For each assertion indicate two or three audit procedures that would address that assertion. Organize you answer as follows: Financial statement assertion Audit procedure(s)

Accepted Answer

Financial statement assertion Audit proc

Question 20

Which one of the following is the primary reason for documenting audit work?

Accepted Answer

A) To prevent litigation by other parties that question the audit performance. 
B) To provide a stand-alone medium that gives audit conclusions and supports the opinion. 
C) To give the client a full reporting of all work performed on their behalf. 
D) To supply a point of reference for all auditors performing the work subsequently. 
A) To prevent litigation by other parties that question the audit performance. 
B) To provide a stand-alone medium that gives audit conclusions and supports the opinion. 
C) To give the client a full reporting of all work performed on their behalf. 
D) To supply a point of reference for all auditors performing the work subsequently.

The auditor uses professional judgment to determine which audit procedures to perform.

The auditor normally considers both underlying accounting data and corroborating information in the audit process.Underlying accounting data does not include which of the following items?

Individuals receiving confirmations from the auditor are asked to respond directly to the client being audited as to whether they agree or disagree with the information.

For an auditor to test the existence assertion of assets,testing will be performed beginning with the recorded asset and ending with the source documents.

Each of the audit procedures that an auditor could select possesses which of the following characteristics?:

Ulanda and Mudana,CPAs are performing an audit on McArnee,Inc.Ulanda selects a sample from certain source documents and traces them forward to the accounts payable ledger.The purpose of this test is to determine the possibility of understated liabilities.

While inspecting documents,auditors should use original documents rather than copies,because copies are easy for management to falsify.

Observation suffers from which of the following limitations?

The extent of procedures is affected mostly by which of the following factors?

Sufficient appropriate evidential matter Discuss the importance of the phrase "sufficient appropriate evidence is to be obtained..." How do auditing standards define sufficiency and appropriateness?

Audit documentation should include the initials or electronic signature in order to identify the audit personnel responsible for the work and the managers and partners reviewing the work.

The performance of analytical procedures is often used by an auditor as a procedure to gather certain types of audit evidence.

Which of the following characteristics are not normally included in good audit documentation?

Analytical procedures are a type of substantive evidence.

Relevance and reliability of evidence make up the appropriateness of audit evidence.

Reprocessing of transactions helps establish that all valid items have been recorded.Reprocessing tests which of the following assertions?

The auditor utilizes the same audit program and the same procedures each year for each client in order to ensure that nothing is missed in the current year audit.

The primary importance of the audit program is its guidance of the overall conduct of the audit.

Which one of the following is the primary reason for documenting audit work?

Auditing: Integral to the Economy

The Risk of Fraud and Mechanisms to Address Fraud: Regulation,corporate Governance,and Audit Quality

Internal Control Over Financial Reporting: Managements Responsibilities and Importance to the External Auditors

Professional Liability and the Need for Quality Auditor Judgments and Ethical Decisions

Professional Auditing Standards and the Audit Opinion Formulation Process

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

Auditing Debt Obligations and Stockholders Equity Transactions

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

Exam 6: A Framework for Audit Evidence

The auditor uses professional judgment to determine which audit procedures to perform.

The auditor normally considers both underlying accounting data and corroborating information in the audit process.Underlying accounting data does not include which of the following items?

Individuals receiving confirmations from the auditor are asked to respond directly to the client being audited as to whether they agree or disagree with the information.

For an auditor to test the existence assertion of assets,testing will be performed beginning with the recorded asset and ending with the source documents.

Each of the audit procedures that an auditor could select possesses which of the following characteristics?:

Ulanda and Mudana,CPAs are performing an audit on McArnee,Inc.Ulanda selects a sample from certain source documents and traces them forward to the accounts payable ledger.The purpose of this test is to determine the possibility of understated liabilities.

While inspecting documents,auditors should use original documents rather than copies,because copies are easy for management to falsify.

Observation suffers from which of the following limitations?

The extent of procedures is affected mostly by which of the following factors?

Sufficient appropriate evidential matter Discuss the importance of the phrase "sufficient appropriate evidence is to be obtained..." How do auditing standards define sufficiency and appropriateness?

Audit documentation should include the initials or electronic signature in order to identify the audit personnel responsible for the work and the managers and partners reviewing the work.

The performance of analytical procedures is often used by an auditor as a procedure to gather certain types of audit evidence.

Which of the following characteristics are not normally included in good audit documentation?

Analytical procedures are a type of substantive evidence.

Relevance and reliability of evidence make up the appropriateness of audit evidence.

Reprocessing of transactions helps establish that all valid items have been recorded.Reprocessing tests which of the following assertions?

The auditor utilizes the same audit program and the same procedures each year for each client in order to ensure that nothing is missed in the current year audit.

The primary importance of the audit program is its guidance of the overall conduct of the audit.

Which one of the following is the primary reason for documenting audit work?

Auditing: Integral to the Economy

The Risk of Fraud and Mechanisms to Address Fraud: Regulation,corporate Governance,and Audit Quality

Internal Control Over Financial Reporting: Managements Responsibilities and Importance to the External Auditors

Professional Liability and the Need for Quality Auditor Judgments and Ethical Decisions

Professional Auditing Standards and the Audit Opinion Formulation Process

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

Auditing Debt Obligations and Stockholders Equity Transactions

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