A) must be in electronic form. B) must be in paper form only. C) is not required, but is strongly recommended. D) may be in paper, electronic, or some other medium. A) must be in electronic form. B) must be in paper form only. C) is not required, but is strongly recommended. D) may be in paper, electronic, or some other medium.

Exam 5: Evidence and Documentation

Sarah is auditing the sales of a new client. In one procedure Sarah performs, she begins with the original sales documents and then searches the accounting records to find the corresponding entry. What test is Sarah performing and what management assertion is she testing?

(Essay)

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Question 41

Which of the following statements is generally correct about the appropriateness of audit evidence?

(Multiple Choice)

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Question 42

Each of the following might, by itself, form a valid basis for an auditor to reduce substantive testing except for the:

(Multiple Choice)

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Question 43

Which of the following nonfinancial information would an auditor most likely consider in performing analytical procedures during the planning phase of an audit?

(Multiple Choice)

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Question 44

All audit documentation should have a heading, which includes:

(Multiple Choice)

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Question 45

The auditor must use his or her professional judgment to determine the amount of audit evidence to be gathered.

(True/False)

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Question 46

Audit procedures are designed to test management assertions.

(True/False)

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Question 47

Auditors obtain evidence about the inventory account through, among other procedures, observing the counting of inventory. What are some limitations "observation" has as an audit procedure?

(Essay)

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Question 48

The auditor generally finds more predictability in the ratio and trend analysis in the examination of the:

(Multiple Choice)

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Question 49

In determining whether transactions have been recorded, the direction of the audit testing should start from the:

(Multiple Choice)

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Question 50

Audit documentation:

(Multiple Choice)

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Question 51

Which of the following show the detailed general ledger accounts that make up a financial statement category on the auditor's working trial balance?

(Multiple Choice)

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Question 52

Name two management assertions pertaining to the inventory account balance and explain why they are considered in an audit.

(Essay)

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Question 53

In deciding to implement analytical procedures, what are some factors the auditor will consider in determining a tolerable difference between the expectation and the recorded amount?

(Essay)

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Question 54

A company sells a particular product only in the last month of its fiscal year. The company uses commission agents for such sales and pays them 6% of their net sales 30 days after the sales are made. The agents' sales were $10 million. Experience indicates that 10% of the sales are usually not collected and 2% are returned in the first month of the new year. The auditor would expect the year-end balance in the accrued commissions payable account to be:

(Multiple Choice)

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Question 55

Your audit client is under intense pressure to meet an earnings target. Which transaction assertion for transactions within the purchasing process are you most concerned with?

(Multiple Choice)

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Question 56

Based on conversations with the owner-manager of an audit client, the auditor ascertained that the company's primary motivation is to avoid paying income taxes. Based on this motivation, which account balance assertion for ending inventory will the auditor be most concerned about verifying?

(Multiple Choice)

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Question 57

The permanent (continuing)file of an auditor's working papers most likely would include copies of the:

(Multiple Choice)

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Question 58

Following are several statements regarding accounting records or audit documentation. Which of the statements is correct?

(Multiple Choice)

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Question 59

You are concerned with unrecorded transactions in the purchasing cycle. Which audit procedure are you most likely to use when auditing purchases?

(Multiple Choice)

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Question 60

Showing 41 - 60 of 87

Sarah is auditing the sales of a new client. In one procedure Sarah performs, she begins with the original sales documents and then searches the accounting records to find the corresponding entry. What test is Sarah performing and what management assertion is she testing?

Which of the following statements is generally correct about the appropriateness of audit evidence?

Each of the following might, by itself, form a valid basis for an auditor to reduce substantive testing except for the:

Which of the following nonfinancial information would an auditor most likely consider in performing analytical procedures during the planning phase of an audit?

All audit documentation should have a heading, which includes:

The auditor must use his or her professional judgment to determine the amount of audit evidence to be gathered.

Audit procedures are designed to test management assertions.

Auditors obtain evidence about the inventory account through, among other procedures, observing the counting of inventory. What are some limitations "observation" has as an audit procedure?

The auditor generally finds more predictability in the ratio and trend analysis in the examination of the:

In determining whether transactions have been recorded, the direction of the audit testing should start from the:

Audit documentation:

Which of the following show the detailed general ledger accounts that make up a financial statement category on the auditor's working trial balance?

Name two management assertions pertaining to the inventory account balance and explain why they are considered in an audit.

In deciding to implement analytical procedures, what are some factors the auditor will consider in determining a tolerable difference between the expectation and the recorded amount?

Your audit client is under intense pressure to meet an earnings target. Which transaction assertion for transactions within the purchasing process are you most concerned with?

Based on conversations with the owner-manager of an audit client, the auditor ascertained that the company's primary motivation is to avoid paying income taxes. Based on this motivation, which account balance assertion for ending inventory will the auditor be most concerned about verifying?

The permanent (continuing)file of an auditor's working papers most likely would include copies of the:

Following are several statements regarding accounting records or audit documentation. Which of the statements is correct?

You are concerned with unrecorded transactions in the purchasing cycle. Which audit procedure are you most likely to use when auditing purchases?

An Introduction to Assurance and Financial Statement Auditing

The Financial Statement Auditing Environment

Audit Planning, Types of Audit Tests, and Materiality

Risk Assessment

Internal Control in a Financial Statement Audit

Auditing Internal Control Over Financial Reporting

Audit Sampling: An Overview and Application to Tests of Controls

Audit Sampling: An Application to Substantive Tests of Account Balances

Auditing the Revenue Process

Auditing the Purchasing Process

Auditing the Human Resource Management Process

Auditing the Inventory Management Process

Auditing the Financinginvesting Process: Prepaid Expenses, Intangible Assets, and Property, Plant, and Equipment

Auditing the Financinginvesting Process: Long-Term Liabilities, Stockholders' Equity, and Income Statement Accounts

Auditing the Financinginvesting Process: Cash and Investments

Completing the Audit Engagement

Reports on Audited Financial Statements

Professional Conduct, Independence, and Quality Control

Legal Liability

Assurance, Attestation, and Internal Auditing Services

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