Question 1

Appropriateness of evidence is a measure of which of the following?

Accepted Answer

A) Quantity of evidence. 
B) Quality of evidence. 
C) Sufficiency of evidence. 
D) Meaning of evidence. 
A) Quantity of evidence. 
B) Quality of evidence. 
C) Sufficiency of evidence. 
D) Meaning of evidence.

Question 2

Audit procedures Discuss how each of the following procedures could be used in the audit of fixed assets,e.g.,various types of equipment used in the business. Procedure How used Assertion(s)tested Observation Physical examination Inquiry Confirmation Examination of documents Recomputation Reprocessing Vouching Analytical Procedures

Accepted Answer

Procedure How used Assertion(s)tested Ob

Question 3

The auditor multiplies the quantity of inventory on the inventory ledger by the cost of the inventory to arrive at total inventory balance per product number.This is an example of recomputation by footing.

Accepted Answer

A) True 
 B)False

Question 4

Footing,cross-footing,and tests of extensions are examples of which approach to gathering evidence?

Accepted Answer

A) Reprocessing. 
B) Recalculation. 
C) Vouching. 
D) Examination of documentation. 
A) Reprocessing. 
B) Recalculation. 
C) Vouching. 
D) Examination of documentation.

Question 5

Documentation that is produced electronically by the client's internal systems is not considered appropriate to the audit process.

Accepted Answer

A) True 
 B)False

Question 6

Liabilities and expenses are most often tested for overstatements.

Accepted Answer

A) True 
 B)False

Question 7

Which one of the following would be the most reliable type of evidence?

Accepted Answer

A) Photocopies. 
B) Indirectly obtained evidence. 
C) Observation of assets. 
D) Inquiry with the in-house attorney. 
A) Photocopies. 
B) Indirectly obtained evidence. 
C) Observation of assets. 
D) Inquiry with the in-house attorney.

Question 8

When the auditor used the audit procedure vouching she is primarily concerned with which of the following assertions?

Accepted Answer

A) Completeness. 
B) Existence. 
C) Authorization. 
D) Classification. 
A) Completeness. 
B) Existence. 
C) Authorization. 
D) Classification.

Question 9

Which of the following is a factor that the auditor should consider as they affect the reliability and relevance of information produced by a management's specialist?

Accepted Answer

A) Competence,capabilities,and objectivity of that specialist. 
B) Work performed by that specialist. 
C) Appropriateness of that specialist's work as audit evidence for the relevant assertion. 
D) All of the above. 
A) Competence,capabilities,and objectivity of that specialist. 
B) Work performed by that specialist. 
C) Appropriateness of that specialist's work as audit evidence for the relevant assertion. 
D) All of the above.

Question 10

Audit assertions and procedures on Cash balances Identify and demonstrate the audit assertions and different approaches to the obtaining audit evidence for an audit of cash balances in a financial statement audit.

Accepted Answer

In the performance of the audit of cash

Question 11

Audit documentation should contain which of the following?

Accepted Answer

A) A heading that includes the name of the audit client,an explanatory title,and the balance sheet date. 
B) The initials or electronic signature of the auditor performing the audit test and the date the test was completed. 
C) The initials or electronic signature of the manager or partner who reviewed the documentation and the date the review was completed. 
D) All of the above. 
A) A heading that includes the name of the audit client,an explanatory title,and the balance sheet date. 
B) The initials or electronic signature of the auditor performing the audit test and the date the test was completed. 
C) The initials or electronic signature of the manager or partner who reviewed the documentation and the date the review was completed. 
D) All of the above.

Question 12

An example of physical observation is the auditor's testing of inventory by counting it to substantiate the existence assertion.

Accepted Answer

A) True 
 B)False

Question 13

The type of audit evidence known as inquiry does not ordinarily provide sufficient audit evidence of the absence of a material misstatement,nor is it alone sufficient to test the operating effectiveness of controls.

Accepted Answer

A) True 
 B)False

Question 14

Vouching recorded transactions involves taking a sample from the journal and tracing the items back to the source documents to ensure the transactions occurred.

Accepted Answer

A) True 
 B)False

Question 15

The quality of electronic evidence depends on the controls built into the information system.

Accepted Answer

A) True 
 B)False

Question 16

Underlying accounting records consist of evidence of controls as well as supporting records such as checks,invoices,the general and subsidiary ledger and journal entries.

Accepted Answer

A) True 
 B)False

Question 17

Auditors should mail third party confirmations through the client's mailroom.

Accepted Answer

A) True 
 B)False

Question 18

While inspecting documents,the reliability depends on the nature and source of the documentation.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following assertions is the primary assertion that is satisfied by physically observing the client's count of inventory?

Accepted Answer

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

Question 20

Audit evidence consists of both information that supports and corroborates management's assertions regarding the financial statements or internal control over financial reporting and information that contradicts such assertions.

Accepted Answer

A) True 
 B)False

Appropriateness of evidence is a measure of which of the following?

The auditor multiplies the quantity of inventory on the inventory ledger by the cost of the inventory to arrive at total inventory balance per product number.This is an example of recomputation by footing.

Footing,cross-footing,and tests of extensions are examples of which approach to gathering evidence?

Documentation that is produced electronically by the client's internal systems is not considered appropriate to the audit process.

Liabilities and expenses are most often tested for overstatements.

Which one of the following would be the most reliable type of evidence?

When the auditor used the audit procedure vouching she is primarily concerned with which of the following assertions?

Which of the following is a factor that the auditor should consider as they affect the reliability and relevance of information produced by a management's specialist?

Audit assertions and procedures on Cash balances Identify and demonstrate the audit assertions and different approaches to the obtaining audit evidence for an audit of cash balances in a financial statement audit.

Audit documentation should contain which of the following?

An example of physical observation is the auditor's testing of inventory by counting it to substantiate the existence assertion.

The type of audit evidence known as inquiry does not ordinarily provide sufficient audit evidence of the absence of a material misstatement,nor is it alone sufficient to test the operating effectiveness of controls.

Vouching recorded transactions involves taking a sample from the journal and tracing the items back to the source documents to ensure the transactions occurred.

The quality of electronic evidence depends on the controls built into the information system.

Underlying accounting records consist of evidence of controls as well as supporting records such as checks,invoices,the general and subsidiary ledger and journal entries.

Auditors should mail third party confirmations through the client's mailroom.

While inspecting documents,the reliability depends on the nature and source of the documentation.

Which of the following assertions is the primary assertion that is satisfied by physically observing the client's count of inventory?

Audit evidence consists of both information that supports and corroborates management's assertions regarding the financial statements or internal control over financial reporting and information that contradicts such assertions.

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

Appropriateness of evidence is a measure of which of the following?

The auditor multiplies the quantity of inventory on the inventory ledger by the cost of the inventory to arrive at total inventory balance per product number.This is an example of recomputation by footing.

Footing,cross-footing,and tests of extensions are examples of which approach to gathering evidence?

Documentation that is produced electronically by the client's internal systems is not considered appropriate to the audit process.

Liabilities and expenses are most often tested for overstatements.

Which one of the following would be the most reliable type of evidence?

When the auditor used the audit procedure vouching she is primarily concerned with which of the following assertions?

Which of the following is a factor that the auditor should consider as they affect the reliability and relevance of information produced by a management's specialist?

Audit assertions and procedures on Cash balances Identify and demonstrate the audit assertions and different approaches to the obtaining audit evidence for an audit of cash balances in a financial statement audit.

Audit documentation should contain which of the following?

An example of physical observation is the auditor's testing of inventory by counting it to substantiate the existence assertion.

The type of audit evidence known as inquiry does not ordinarily provide sufficient audit evidence of the absence of a material misstatement,nor is it alone sufficient to test the operating effectiveness of controls.

Vouching recorded transactions involves taking a sample from the journal and tracing the items back to the source documents to ensure the transactions occurred.

The quality of electronic evidence depends on the controls built into the information system.

Underlying accounting records consist of evidence of controls as well as supporting records such as checks,invoices,the general and subsidiary ledger and journal entries.

Auditors should mail third party confirmations through the client's mailroom.

While inspecting documents,the reliability depends on the nature and source of the documentation.

Which of the following assertions is the primary assertion that is satisfied by physically observing the client's count of inventory?

Audit evidence consists of both information that supports and corroborates management's assertions regarding the financial statements or internal control over financial reporting and information that contradicts such assertions.

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