Exam 6: Audit Planning and Documentation

Only those adjusting and reclassification entries that significantly affect the fair presentation of financial statements (i.e. material entries) should be documented or summarised in the auditor's working papers.

(True/False)

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Question 21

The purpose of requiring communication between the predecessor and successor auditor is:

(Multiple Choice)

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Question 22

Discuss the purposes of audit working papers.

(Essay)

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Question 23

There are three main reasons why the auditor should properly plan engagements. Which are the three? 1. to enable the auditor to obtain sufficient appropriate evidence 2) to help keep audit costs reasonable 3) to avoid misunderstandings with the client 4) to earn audit fees for the firm.

(Multiple Choice)

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Question 24

Adjusting and reclassification entries are normally included in the current files of the auditor's working papers.

(True/False)

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Question 25

A predecessor (old) auditor who has been contacted by a successor (new) auditor for information about the client must obtain permission from the client before providing any confidential information to the successor auditor.

(True/False)

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Question 26

One hundred percent acceptable audit risk means that the auditor wants complete certainty that the financial statements are not materially misstated.

(True/False)

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Question 27

The auditor plans the engagement to obtain sufficient appropriate evidence. This is essential to:

(Multiple Choice)

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Question 28

Identify the three primary reasons an auditor should obtain a good understanding of the client's industry and discuss specific ways an auditor can obtain this understanding.

(Essay)

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Question 29

A clear understanding of the terms of the engagement should exist between the client and the public accounting firm as documented in the engagement letter required by:

(Multiple Choice)

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Question 30

The engagement letter:

(Multiple Choice)

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Question 31

ASA 210 requires auditors to:

(Multiple Choice)

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Question 32

Policy and procedures governing the acceptance and continuance of client relationships are contained primarily in:

(Multiple Choice)

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Question 33

The auditor plans the engagement to keep costs reasonable. This is essential to:

(Multiple Choice)

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Question 34

For prospective clients that have previously been audited by another firm, the new auditor is required to communicate with the previous auditor.

(True/False)

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Question 35

Assessing acceptable audit risk and inherent risk is an important part of audit planning, because:

(Multiple Choice)

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Question 36

Knowledge of the auditee's business can be obtained in a variety of ways. Which one of the following is NOT usually one of those ways?

(Multiple Choice)

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Question 37

The last step in accepting an audit engagement and initial planning is to:

(Multiple Choice)

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Question 38

What procedures should the auditor use to identify a related- party transaction?

(Essay)

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Question 39

The auditor plans the engagement to avoid misunderstandings with the client. This is essential to:

(Multiple Choice)

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Question 40

Showing 21 - 40 of 106

Only those adjusting and reclassification entries that significantly affect the fair presentation of financial statements (i.e. material entries) should be documented or summarised in the auditor's working papers.

The purpose of requiring communication between the predecessor and successor auditor is:

Discuss the purposes of audit working papers.

There are three main reasons why the auditor should properly plan engagements. Which are the three? 1. to enable the auditor to obtain sufficient appropriate evidence 2) to help keep audit costs reasonable 3) to avoid misunderstandings with the client 4) to earn audit fees for the firm.

Adjusting and reclassification entries are normally included in the current files of the auditor's working papers.

A predecessor (old) auditor who has been contacted by a successor (new) auditor for information about the client must obtain permission from the client before providing any confidential information to the successor auditor.

One hundred percent acceptable audit risk means that the auditor wants complete certainty that the financial statements are not materially misstated.

The auditor plans the engagement to obtain sufficient appropriate evidence. This is essential to:

Identify the three primary reasons an auditor should obtain a good understanding of the client's industry and discuss specific ways an auditor can obtain this understanding.

A clear understanding of the terms of the engagement should exist between the client and the public accounting firm as documented in the engagement letter required by:

The engagement letter:

ASA 210 requires auditors to:

Policy and procedures governing the acceptance and continuance of client relationships are contained primarily in:

The auditor plans the engagement to keep costs reasonable. This is essential to:

For prospective clients that have previously been audited by another firm, the new auditor is required to communicate with the previous auditor.

Assessing acceptable audit risk and inherent risk is an important part of audit planning, because:

Knowledge of the auditee's business can be obtained in a variety of ways. Which one of the following is NOT usually one of those ways?

The last step in accepting an audit engagement and initial planning is to:

What procedures should the auditor use to identify a related- party transaction?

The auditor plans the engagement to avoid misunderstandings with the client. This is essential to:

Demand for Audit and Assurance Services

Auditors Legal Environment

Audit Quality and Ethics

Audit Responsibilities and Objectives

Audit Evidence

Materiality and Risk

Internal Control and Control Risk

Fraud Auditing

The Impact of Information Technology on the Audit Process

Overall Audit Plan and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of Transactions

Completing Tests in the Sales and Collection Cycle: Accounts Receivable

Audit Sampling

Audit of Transaction Cycles and Financial Statement Balances I

Audit of Transaction Cycles and Financial Statement Balances II

Completing the Audit

Audit Reporting

Other Auditing and Assurance Engagements

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