Exam 3: Audit Evidence, Audit Planning, Analytical Procedures, Materiality and Risk

Below are 10 documents typically examined during an audit. Classify each document as either internal or external. -Minutes of the board of directors' meetings.

(Short Answer)

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Question 81

Which of the following qualitative factors may significantly influence whether an item is deemed to be material?

(Short Answer)

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Question 82

Of the three common types of confirmations used by auditors, the least reliable type is the negative confirmation.

(True/False)

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Question 83

Below are 12 audit procedures. Classify each procedure according to the following types of audit evidence: -Obtain information about the client's internal controls by asking questions of client personnel.

(Multiple Choice)

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Question 84

When auditors use documents to support recorded transactions, the process is often called:

(Multiple Choice)

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Question 85

Discuss the required communications between predecessor and successor auditors as outlined by ISA 300.

(Essay)

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Question 86

Give two examples of relatively reliable documentation and two examples of less reliable documentation. What characteristics distinguish the two?

(Essay)

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Question 87

Below are 10 documents typically examined during an audit. Classify each document as either internal or external. -Remittance advices.

(Short Answer)

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Question 88

Using your knowledge of the relationships among acceptable audit risk, inherent risk, control risk, planned detection risk, tolerable misstatement, and planned evidence, state the effect on planned evidence (increase or decrease) of changing each of the following factors, while the other factors remain unchanged. -A decrease in control risk.

(Short Answer)

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Question 89

Two categories of audit- relevant information found in corporate charters and bylaws (memorandum and articles of association) are authorizations and discussions of matters affecting inherent risk.

(True/False)

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Question 90

Below are 10 documents typically examined during an audit. Classify each document as either internal or external. -Signed lease agreements.

(Short Answer)

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Question 91

Which of the following is not likely to be a related party?

(Multiple Choice)

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Question 92

Identify the three common types of confirmations used by auditors. Indicate which type is most reliable and explain your answer. In addition, indicate which type is least reliable and explain your answer.

(Essay)

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Question 93

Given the economic constraints in which auditors collect evidence, the auditor normally gathers evidence that is:

(Multiple Choice)

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Question 94

Audit documentation should provide support for:

(Short Answer)

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Question 95

Likely misstatements can result from:

(Short Answer)

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Question 96

Which of the following is most likely to occur at the beginning of an initial audit engagement?

(Multiple Choice)

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Question 97

Below are 10 documents typically examined during an audit. Classify each document as either internal or external. -Vendors' invoices

(Short Answer)

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Question 98

Which of the following is not a correct combination of terms and related type of audit evidence?

(Multiple Choice)

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Question 99

Which of the following is an example of vouching?

(Multiple Choice)

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Question 100

Showing 81 - 100 of 100

Below are 10 documents typically examined during an audit. Classify each document as either internal or external. -Minutes of the board of directors' meetings.

Which of the following qualitative factors may significantly influence whether an item is deemed to be material?

Of the three common types of confirmations used by auditors, the least reliable type is the negative confirmation.

Below are 12 audit procedures. Classify each procedure according to the following types of audit evidence: -Obtain information about the client's internal controls by asking questions of client personnel.

When auditors use documents to support recorded transactions, the process is often called:

Discuss the required communications between predecessor and successor auditors as outlined by ISA 300.

Give two examples of relatively reliable documentation and two examples of less reliable documentation. What characteristics distinguish the two?

Below are 10 documents typically examined during an audit. Classify each document as either internal or external. -Remittance advices.

Two categories of audit- relevant information found in corporate charters and bylaws (memorandum and articles of association) are authorizations and discussions of matters affecting inherent risk.

Below are 10 documents typically examined during an audit. Classify each document as either internal or external. -Signed lease agreements.

Which of the following is not likely to be a related party?

Identify the three common types of confirmations used by auditors. Indicate which type is most reliable and explain your answer. In addition, indicate which type is least reliable and explain your answer.

Given the economic constraints in which auditors collect evidence, the auditor normally gathers evidence that is:

Audit documentation should provide support for:

Likely misstatements can result from:

Which of the following is most likely to occur at the beginning of an initial audit engagement?

Below are 10 documents typically examined during an audit. Classify each document as either internal or external. -Vendors' invoices

Which of the following is not a correct combination of terms and related type of audit evidence?

Which of the following is an example of vouching?

The Demand for Audit, Cpa Profession, Audit Reports and Other Assurance Services

Professional Ethics, Legal Liability, Audit Responsibilities and Objectives

Internal Control, Control Risk, Section 404 Audits, Fraud Auditing, and the Impact of Information Technology on the Audit Process

Overall Audit Strategy, Audit Program, Audit of the Sales and Collection Cycle, Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable, Audit Sampling for Tests of Details of Balances, and Audit of the Acquisition and Payment Cycle

Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts, Audit of the Payroll and Personnel Cycle, Audit of the Inventory and Warehousing Cycle

Audit of the Capital Acquisition, Repayment, Audit of Cash and Financial Instruments, and Completing the Audit

Other Assurance Services, Internal and Governmental Financial Auditing and Operations Auditing

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