Exam 5: Overview of Elements of the Financial Report Audit Process

The auditor faces a risk that the audit will not detect material misstatements that occur in the accounting process.In regard to minimising this risk, the auditor primarily relies on:

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

Which of the following statements relating to the appropriateness of audit evidence is always true?

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

Your audit client is under intense pressure to meet an earnings target. Which audit procedure are you most likely to use when auditing purchases?

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

Who is responsible for the preparation of the financial report?

Which of the following is the least persuasive documentation in support of an auditor's opinion?

Tracing is used primarily to test which of the following assertions about classes of transactions?

The risk that an auditor will conclude, based on substantive tests, that a material error does not exist in an account balance when, in fact, such error does exist is referred to as:

In planning an audit engagement, which of the following is a factor that affects the independent auditor's judgment as to the quantity, type and content of working papers?

Which audit assertion relates to ensuring that all recorded sales are valid?

Most of the independent auditor's work in formulating an opinion on a financial report consists of:

As the acceptable level of detection risk decreases, an auditor may change the:

Selecting a sample of quantities of inventory in the warehouse and tracing each item to the final stock sheets helps address which of the following assertions in respect of inventory?

Which of the following is intended to detect deviations from prescribed Accounting Department procedures?

As the acceptable level of detection risk decreases, the assurance directly provided from:

Which of the following is not a factor affecting the independent auditor's judgment as to the quantity, type and content of audit working papers?

Which of the following does NOT assist in the achievement of the audit assertion of existence in relation to an investment in listed shares?

Which of the following audit objectives relates primarily to the financial report assertion of presentation and disclosure-classification and understandability?