Exam 6: Audit Evidence, Audit Objectives,

When the auditor examines the revenue cycle, he or she must attend to four major transaction streams.

If a client maintains important documentation and evidence in electronic form for a material account balance or transaction class it will have several implications for the nature of audit tests.

The second standard of fieldwork requires the auditor to obtain sufficient competent evidence through audit procedures to afford a reasonable basis for an opinion on the financial statements.

Relevance is the measure of the quality or reliability of the audit evidence, whereas competence relates to whether the evidence is pertinent to the assertion being tested.

Auditing procedures are the methods or techniques used by the auditor to gather and evaluate sufficient, competent evidential matter.

Working papers provide the principal support for the financial statements.

Inquiring involves only written inquiry by the auditor.

Which of the following auditing procedures is least likely to disclose an understatement?

The Sarbanes-Oxley Act requires the auditor to keep workpapers for at least seven years.

Industry trade associations are not usually good sources of information about the key competitiveness factors in an industry.

The form of the audit program will vary with the circumstances of the audit.

Accounting records generally include:

With respect to audit objectives, the term validity relates to which of the assertions below?

If a client uses an image processing system to scan documents and original documents are not retained, the auditor will want to consider the implications for the timing of tests of transactions.

An important function of working papers is to document audit decisions.

When planning the audit, the auditor must make the following important decisions except the:

Tracing looks primarily for understatements, while vouching looks primarily for overstatements.

Analytical procedures consist of the study and comparison of relationships among data.

Making sure that the detail of and accounts receivable file agrees with the general ledger before the file is used to produce confirmations is an example of which of the following audit procedures?

The knowledge, skill and ability of personnel assigned engagement responsibilities should be commensurate with the auditor's assessment of the level of risk related to those responsibilities.