Exam 13: Overall Audit Strategy and Audit Program

An exception in a test of control provides only an indication of the likelihood of monetary misstatements in the financial statements because tests of controls do not reveal whether monetary misstatements have actually occurred.

There are three stages of the audit in which analytical procedures are performed.Identify each of these three stages and,for each stage,discuss the purpose of performing analytical procedures in that stage.Also indicate in which stage(s)analytical procedures are required by current professional auditing standards.

Which of the following types of evidence is not available when using substantive tests of transactions?

When the auditor has completed the tests of details of balances and enters phase IV of the audit process,she must still perform audit procedures for which of the following?

Management implements internal controls to ensure that all required footnote disclosures are accurate.Auditors tests those controls to provide evidence supporting the ________ presentation.

Which of the following procedures would most likely be performed in response to the auditor's assessment of the risk of monetary misstatements in the financial statements?

Which of the following tests commonly occur together?

Tests of controls are directed toward the control's

What type of test is used to obtain the most types of evidence?

Which of the following further audit procedures are used to determine whether all six transaction-related audit objectives have been achieved for each class of transactions?

Analytical procedures are the most expensive type of audit test to perform because of the expertise and training required to properly use them.

The reliance the auditor places on substantive tests in relation to the reliance placed on internal control varies in a relationship that is ordinarily

Only tests of details of balances involve physical examination and confirmation.

Which of the following is an accurate statement regarding the four phases of the audit process?

Which of the following is not completed during phase IV of the audit?

The primary emphasis in most tests of details of balances is on the

When controls are effective and control risk is assessed as low,auditors put heavy emphasis on tests of balances.

For clients with highly sophisticated computerized accounting systems,auditors perform tests throughout the year to identify significant or unusual transactions.This approach is called ________ and is frequently used in integrated audits of financial statements and internal control for public companies.

Which phase(s)of the audit uses inquiries of clients as a type of evidence?

An exception or deficiency found in a test of controls