Exam 5: Audit Evidence and Documentation

An auditor is performing an analytical procedure that involves comparing a client's ratios with other companies in the same industry.This technique is referred to as:

What ultimately determines the specific audit procedures necessary to provide independent auditors with a reasonable basis for the expression of an opinion?

Auditors must obtain written client representations that typically should be signed by:

Which of the following statements is not correct regarding the auditor's further analysis?

A schedule set up to combine similar general ledger accounts,the total of which appears on the working trial balance as a single amount,is referred to as a:

Management has centralized purchasing and uses a model based upon previous year's sales with adjustments for trends in the market place (e.g. ,the trend to more casual shoes).A staff auditor has suggested that the centralized purchasing may be one of the reasons for the lower level of profitability in the Mid-Central Region.Which of the following would be the best single audit procedure to address the staff auditor's assertion?

Which of the following is not a basic procedure used in an audit?

Which of the following is not a basic approach often used by auditors to evaluate the reasonableness of accounting estimates?

The date on which no information may be deleted from audit documentation is the

An unexpected economic downturn is likely to have which effect on inventory turnover.

An auditor should expect that fair value is the price that would be received to sell an asset in an orderly transaction between the market participants at the:

An advantage of data analytical approaches applied to auditing is that

The auditors of Smith Electronics wish to limit the audit risk of material misstatement in the test of accounts receivable to 5 percent.They believe that inherent risk is 100%,and there is a 40% risk that material misstatement could have bypassed the client's system of internal control.What is the maximum detection risk the auditors should specify in their substantive procedures of details of accounts receivable?

Which of the following is a basic approach often used by auditors to evaluate the reasonableness of accounting estimates?

In general,which of the following statements is correct with respect to ownership,possession,or access to working papers prepared by a CPA firm in connection with an audit?

For each of the audit procedures listed below select the type of audit procedure,if any,that the auditor performed.A type of audit procedure may be selected once or not at all. -During a site visit to a branch warehouse,the auditor noted unauthorized personnel have access to the inventory.

Analytical procedures are substantive procedures that may be used to provide evidence about specific accounts and classes of transactions. a.Describe three major types of comparisons the auditor might make in performing analytical procedures. b.At what stages of the audit are analytical procedures performed and what purpose do they serve at each stage?

The primary purpose of a letter of representation is to provide evidence about management's future intentions.

Assertions that have a meaningful bearing on whether an account balance,transaction class,or disclosure is fairly stated are referred to as:

Which of the following is most likely to be considered an analytical procedure?