Question 1

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 2

Audit evidence used to support an audit opinion is obtained soley from audit procedures.

Accepted Answer

A) True 
 B)False

Question 3

A limitation of observation is that observing a process on one day does not necessarily indicate how the transactions were processed on a different day or over a relevant period of time.

Accepted Answer

A) True 
 B)False

Question 4

Tracing is a process that helps establish that recorded transactions are valid.

Accepted Answer

A) True 
 B)False

Question 5

The amount of evidence gathered is not important to an auditor since the quality of the evidence is of primary importance.

Accepted Answer

A) True 
 B)False

Question 6

Conclusions are typically documented by auditors in which type of work paper?

Accepted Answer

A)  Audit planning memo. 
B)  Audit program. 
C)  Audit memoranda. 
D)  Representation letter. 
A)  Audit planning memo. 
B)  Audit program. 
C)  Audit memoranda. 
D)  Representation letter.

Question 7

Internal documentation is generally less reliable than external documentation.

Accepted Answer

A) True 
 B)False

Question 8

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 9

Audit standards of proper documentation.
Discuss the audit standards that must be applied to the auditor's documentation. Give five examples the types of documentation will be found in the audit work papers.

Accepted Answer

auditing standards require that the audi

Question 10

Which of the following types of audit evidence is the least reliable?

Accepted Answer

A)  Evidence from the client's organization. 
B)  Evidence derived from a well-controlled system. 
C)  Evidence from independent outside sources. 
D)  Original documents. 
A)  Evidence from the client's organization. 
B)  Evidence derived from a well-controlled system. 
C)  Evidence from independent outside sources. 
D)  Original documents.

Question 11

Which of the following is an example of poorly-developed audit documentation?

Accepted Answer

A)  Clear communication as to how testing was performed, the results and conclusions. 
B)  Organization and assembly of documentation in an orderly fashion. 
C)  Headings that include the name and signature of the client representative that the auditor interacted with while performing testing. 
D)  Authenticated identification of the person responsible for completing the procedure and conclusions. 
A)  Clear communication as to how testing was performed, the results and conclusions. 
B)  Organization and assembly of documentation in an orderly fashion. 
C)  Headings that include the name and signature of the client representative that the auditor interacted with while performing testing. 
D)  Authenticated identification of the person responsible for completing the procedure and conclusions.

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

Reliability of audit evidence.
The Auditing Standards Board established guidelines to assist auditors in evaluating the reliability of audit evidence. Discuss the criteria for the more reliable types of evidence and include an example for each.

Accepted Answer

Evidence that is considered to be more r

Question 14

Vouching recorded transactions involves taking a sample entry from a journal and obtaining the original source documents to ensure the transaction occurred.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

The reliability of a client's internal documentation is most affected by which of the following?

Accepted Answer

A)  The auditor's independence. 
B)  Management's motivation to misstate accounts. 
C)  The type of audit report that will be issued. 
D)  Management's ability to understand generally accepted audit standards. 
A)  The auditor's independence. 
B)  Management's motivation to misstate accounts. 
C)  The type of audit report that will be issued. 
D)  Management's ability to understand generally accepted audit standards.

Question 17

Internal documentation is more reliable to the auditor if the internal control surrounding the documentation is considered strong than if it is considered weak.

Accepted Answer

A) True 
 B)False

Question 18

The audit program specifies what the client must do to perform the audit in accordance with generally accepted accounting procedures.

Accepted Answer

A) True 
 B)False

Question 19

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 20

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.

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

Audit evidence used to support an audit opinion is obtained soley from audit procedures.

A limitation of observation is that observing a process on one day does not necessarily indicate how the transactions were processed on a different day or over a relevant period of time.

Tracing is a process that helps establish that recorded transactions are valid.

The amount of evidence gathered is not important to an auditor since the quality of the evidence is of primary importance.

Conclusions are typically documented by auditors in which type of work paper?

Internal documentation is generally less reliable than external documentation.

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 standards of proper documentation. Discuss the audit standards that must be applied to the auditor's documentation. Give five examples the types of documentation will be found in the audit work papers.

Which of the following types of audit evidence is the least reliable?

Which of the following is an example of poorly-developed audit documentation?

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

Reliability of audit evidence. The Auditing Standards Board established guidelines to assist auditors in evaluating the reliability of audit evidence. Discuss the criteria for the more reliable types of evidence and include an example for each.

Vouching recorded transactions involves taking a sample entry from a journal and obtaining the original source documents to ensure the transaction occurred.

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

The reliability of a client's internal documentation is most affected by which of the following?

Internal documentation is more reliable to the auditor if the internal control surrounding the documentation is considered strong than if it is considered weak.

The audit program specifies what the client must do to perform the audit in accordance with generally accepted accounting procedures.

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.

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

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

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

Audit evidence used to support an audit opinion is obtained soley from audit procedures.

A limitation of observation is that observing a process on one day does not necessarily indicate how the transactions were processed on a different day or over a relevant period of time.

Tracing is a process that helps establish that recorded transactions are valid.

The amount of evidence gathered is not important to an auditor since the quality of the evidence is of primary importance.

Conclusions are typically documented by auditors in which type of work paper?

Internal documentation is generally less reliable than external documentation.

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 standards of proper documentation. Discuss the audit standards that must be applied to the auditor's documentation. Give five examples the types of documentation will be found in the audit work papers.

Which of the following types of audit evidence is the least reliable?

Which of the following is an example of poorly-developed audit documentation?

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

Reliability of audit evidence. The Auditing Standards Board established guidelines to assist auditors in evaluating the reliability of audit evidence. Discuss the criteria for the more reliable types of evidence and include an example for each.

Vouching recorded transactions involves taking a sample entry from a journal and obtaining the original source documents to ensure the transaction occurred.

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

The reliability of a client's internal documentation is most affected by which of the following?

Internal documentation is more reliable to the auditor if the internal control surrounding the documentation is considered strong than if it is considered weak.

The audit program specifies what the client must do to perform the audit in accordance with generally accepted accounting procedures.

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.

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

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