Question 1

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 2

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 3

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 4

Inquiries of client personnel are not a frequent means of evidence gathering by an auditor.

Accepted Answer

A) True 
 B)False

Question 5

A date at which audit evidence is collected earlier than the balance sheet date is referred to as what?

Accepted Answer

A)  Subsequent date. 
B)  Cutoff period. 
C)  Significant date. 
D)  Interim date. 
A)  Subsequent date. 
B)  Cutoff period. 
C)  Significant date. 
D)  Interim date.

Question 6

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 recalculation by footing.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is an example of inspection of documentation?

Accepted Answer

A)  Review shipping documents. 
B)  Estimate the expected amount of interest income. 
C)  Observe controls. 
D)  Recalculate the total amount include on a sales invoice. 
A)  Review shipping documents. 
B)  Estimate the expected amount of interest income. 
C)  Observe controls. 
D)  Recalculate the total amount include on a sales invoice.

Question 8

The reliability of audit evidence relates to the connection between the audit procedure being performed and the assertion being audited.

Accepted Answer

A) True 
 B)False

Question 9

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 10

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 11

Inspection of an asset generally provides reliable evidence about the rights and obligations assertion related to that asset.

Accepted Answer

A) True 
 B)False

Question 12

Reprocessing of transactions involves which of the following?

Accepted Answer

A)  Testing forward. 
B)  Testing backward. 
C)  Testing at a point in time. 
D)  Directional testing either forward or backward. 
A)  Testing forward. 
B)  Testing backward. 
C)  Testing at a point in time. 
D)  Directional testing either forward or backward.

Question 13

The direction of testing from recorded amounts toward supporting documentation provides evidence as to existence of assets and revenues.

Accepted Answer

A) True 
 B)False

Question 14

The purpose of performing analytical procedures in the planning stage of an audit is to gather audit evidence and make conclusions about account balances.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is not an estimate that requires significant auditor judgment and skepticism?

Accepted Answer

A)  Obligations for pension plans. 
B)  Valuation of goodwill. 
C)  Allowance for bad debt. 
D)  Common stock and related additional paid-in capital. 
A)  Obligations for pension plans. 
B)  Valuation of goodwill. 
C)  Allowance for bad debt. 
D)  Common stock and related additional paid-in capital.

Question 16

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 17

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 18

Analytical procedures are a type of substantive evidence.

Accepted Answer

A) True 
 B)False

Question 19

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 20

The client's verbal evidence is more reliable than evidence from independent outside sources.

Accepted Answer

A) True 
 B)False

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

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

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

Inquiries of client personnel are not a frequent means of evidence gathering by an auditor.

A date at which audit evidence is collected earlier than the balance sheet date is referred to as what?

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 recalculation by footing.

Which of the following is an example of inspection of documentation?

The reliability of audit evidence relates to the connection between the audit procedure being performed and the assertion being audited.

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

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.

Inspection of an asset generally provides reliable evidence about the rights and obligations assertion related to that asset.

Reprocessing of transactions involves which of the following?

The direction of testing from recorded amounts toward supporting documentation provides evidence as to existence of assets and revenues.

The purpose of performing analytical procedures in the planning stage of an audit is to gather audit evidence and make conclusions about account balances.

Which of the following is not an estimate that requires significant auditor judgment and skepticism?

Observation suffers from which of the following limitations?

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

Analytical procedures are a type of substantive evidence.

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?

The client's verbal evidence is more reliable than evidence from independent outside sources.

Auditing: Integral to the Economy

The Auditors Responsibilities Regarding Fraud and Mechanisms to Address Fraud: Regulation and Corporate Governance

Internal Control Over Financial Reporting: Responsibilities of Management and the External Auditors

Professional Liability, Auditor Judgment Frameworks, and Professional Responsibilities

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

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Exam 6: A Framework for Audit Evidence

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

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

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

Inquiries of client personnel are not a frequent means of evidence gathering by an auditor.

A date at which audit evidence is collected earlier than the balance sheet date is referred to as what?

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 recalculation by footing.

Which of the following is an example of inspection of documentation?

The reliability of audit evidence relates to the connection between the audit procedure being performed and the assertion being audited.

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

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.

Inspection of an asset generally provides reliable evidence about the rights and obligations assertion related to that asset.

Reprocessing of transactions involves which of the following?

The direction of testing from recorded amounts toward supporting documentation provides evidence as to existence of assets and revenues.

The purpose of performing analytical procedures in the planning stage of an audit is to gather audit evidence and make conclusions about account balances.

Which of the following is not an estimate that requires significant auditor judgment and skepticism?

Observation suffers from which of the following limitations?

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

Analytical procedures are a type of substantive evidence.

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?

The client's verbal evidence is more reliable than evidence from independent outside sources.

Auditing: Integral to the Economy

The Auditors Responsibilities Regarding Fraud and Mechanisms to Address Fraud: Regulation and Corporate Governance

Internal Control Over Financial Reporting: Responsibilities of Management and the External Auditors

Professional Liability, Auditor Judgment Frameworks, and Professional Responsibilities

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