Exam 5: Evidence and Documentation

Of the following, the most reliable type of evidence typically is:

Audit documents that record the procedures used by the auditor to gather evidence should be:

The permanent audit file usually includes:

Analytical procedures may be classified as being primarily which of the following?

For each of the following specific audit procedures, indicate the type of audit evidence it is gathering: (1)inspection of records or documents, (2)inspection of tangible assets, (3)observation, (4)inquiry, (5)confirmation, (6)recalculation, (7)reperformance, (8)analytical procedures, and (9)scanning. The audit evidences can be used more than once. a. Discussing the recording of sales discounts in the fourth quarter with the accounts receivable manager. b. Examining sales invoices for supporting customer order and shipping documents. c. Reviewing the accounts payable subsidiary ledger for debit balances or interest-bearing payables. d. Sending a written request to the entity's bank requesting the cash balances in the entity's accounts and any other liability balances that the entity owes the bank. e. Comparing the current-year accounts receivable turnover with the accounts receivable turnover for the industry. f. Examining a new piece of equipment to ensure that a major acquisition was received and is operational. g. Watching the entity's accounting personnel while they prelist cash receipts. h. Footing the entity's bank reconciliation and tracing the balance per the books to the general ledger. i. Recomputing sales price and extensions on sales invoices. j. For a sample of sales transactions recorded in the sales journal, tracing the sales invoices back to customer orders and shipping documents.

To test for unsupported entries in the ledger, the direction of audit testing should start from the:

Of the following, which is the least reliable type of audit evidence?

Which of the following procedures would an auditor most likely perform to verify management's assertion of completeness?

Which of the following elements ultimately determines the amount of audit work that is necessary in the circumstances to afford a reasonable basis for an opinion?

Which of the following is not a typical analytical procedure?

In testing plant and equipment balances, an auditor may physically inspect new additions listed on the summary of plant and equipment transactions for the year. This procedure is designed to obtain evidence concerning management's assertions about classes of transactions and events, and specifically, which assertion?

An example of an analytical procedure is the comparison of:

Audit documents record the results of the auditor's evidence-gathering procedures. When preparing audit documents, the auditor should remember that:

You are auditing a store that sells merchandise. Some of the store merchandise is held on consignment. Which account balance assertion for inventory should you be most concerned about verifying?

Which assertions may be tested for the "account balances" category of management assertions?

Footing is an example of:

Which of the following presumptions is correct about the reliability of audit evidence?

The sufficiency of evidence refers to the quality of audit evidence.

An abnormal fluctuation in gross profit that might suggest the need for extended audit procedures for sales and inventories would most likely be identified in the planning phase of the audit by the use of:

Vouching is used primarily to test which of the following assertions about classes of transaction?