Exam 6: Audit planning and documentation

Information such as organisation charts, flowcharts, and questionnaires related to the auditor's understanding of internal control is typically included in the permanent files of the auditor's working papers.

(True/False)

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Question 81

ASA 300.05 requires the auditor to plan the audit so that the engagement will be performed in an effective manner.

(True/False)

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Question 82

Identify the three factors an auditor should evaluate before relying on the work of an outside specialist.

(Essay)

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Question 83

During the course of an audit engagement, an auditor prepares and accumulates audit working papers.The audit working papers should then be kept:

(Multiple Choice)

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Question 84

One purpose of performing preliminary analytical procedures in the planning phase of an audit is to help the auditor make a preliminary assessment of control risk.

(True/False)

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Question 85

Why do auditors assess a high level of inherent risk for related parties and related-party transactions?

(Multiple Choice)

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Question 86

The current file of the auditor's working papers generally should include:

(Multiple Choice)

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Question 87

Identify three ways audit software can be used by audit firms to assist in the documentation and recording of the audit process:

(Essay)

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Question 88

Material transactions between the client and the client's related parties must be disclosed in the client's financial statements and in the auditor's report.

(True/False)

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Question 89

Which one of the following would ordinarily NOT be found in the permanent file?

(Multiple Choice)

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Question 90

The current audit files include all audit documentation applicable to the year under audit, including:

(Multiple Choice)

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Question 91

When an auditor decides on a higher acceptable audit risk, the auditor wants to be certain the accounts are not materially misstated.

(True/False)

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Question 92

The auditor needs to understand the control environment (management and governance):

(Multiple Choice)

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Question 93

Under ASA 210, the engagement letter may state:

(Multiple Choice)

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Question 94

The engagement letter:

(Multiple Choice)

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Question 95

Copies of the client's constitution and organisation chart are normally included in the permanent file of the auditor's working papers.

(True/False)

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Question 96

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 97

Discuss the purposes of audit working papers.

(Essay)

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Question 98

Auditors should plan engagements properly to:

(Multiple Choice)

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Question 99

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 100

Showing 81 - 100 of 105

Information such as organisation charts, flowcharts, and questionnaires related to the auditor's understanding of internal control is typically included in the permanent files of the auditor's working papers.

ASA 300.05 requires the auditor to plan the audit so that the engagement will be performed in an effective manner.

Identify the three factors an auditor should evaluate before relying on the work of an outside specialist.

During the course of an audit engagement, an auditor prepares and accumulates audit working papers.The audit working papers should then be kept:

One purpose of performing preliminary analytical procedures in the planning phase of an audit is to help the auditor make a preliminary assessment of control risk.

Why do auditors assess a high level of inherent risk for related parties and related-party transactions?

The current file of the auditor's working papers generally should include:

Identify three ways audit software can be used by audit firms to assist in the documentation and recording of the audit process:

Material transactions between the client and the client's related parties must be disclosed in the client's financial statements and in the auditor's report.

Which one of the following would ordinarily NOT be found in the permanent file?

The current audit files include all audit documentation applicable to the year under audit, including:

When an auditor decides on a higher acceptable audit risk, the auditor wants to be certain the accounts are not materially misstated.

The auditor needs to understand the control environment (management and governance):

Under ASA 210, the engagement letter may state:

The engagement letter:

Copies of the client's constitution and organisation chart are normally included in the permanent file of the auditor's working papers.

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

Discuss the purposes of audit working papers.

Auditors should plan engagements properly to:

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:

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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