Exam 13: Overall Audit Strategy and Audit Program

Auditing standards recognize that in instances where a significant amount of audit evidence is in electronic form, it may not be possible to reduce detection risk to an acceptable level by performing only substantive tests.

When testing details of balances, most audit procedures satisfy only one balance-related objective, but more than one audit procedure should be used to test each objective.

An exception or deficiency found in a test of controls:

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

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

The results of tests of controls and substantive tests of transactions affect the design of tests of details of balances.

When designing tests of controls and substantive tests an auditor is gathering evidence to satisfy the transaction related audit objectives.What are the four steps the auditor would normally follow to reduce assessed control risk?

Discuss the purposes of (1)substantive tests of transactions, (2)tests of controls, and (3)tests of details of balances.Give an example of each.

Tests of controls and substantive tests of transactions are an important determinant of the extent of the auditor's use of tests of details of balances.Which of the following is true?

Auditors use analytical procedures and tests of details of balances to satisfy planned detection risk.

Auditors must use considerable professional judgment to determine any change in audit procedures that can be made when the level of inherent risk is increased or decreased.

A procedure designed to test for monetary misstatements directly affecting the correctness of financial statement balances is a:

Procedures to obtain an understanding of internal control generally provide sufficient appropriate evidence that a a control is operating effectively.

A system walkthrough is primarily used to help the auditor:

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

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

Describe the five types of audit tests.Identify which of the five types are substantive tests, and which are used to reduce assessed control risk.

In accumulating final evidence upon which to base an audit opinion, the auditor should perform four activities.List the activities below.

Which of the following would not be considered further audit procedures?

The document that details the specific audit procedures for each type of test is the: