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

The extent of substantive tests for an assertion in relation to the assessed level of inherent risk varies in a relationship that is ordinarily:

Which of the following audit objectives does not relate primarily to the financial report assertion of completeness?

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

Audit evidence can come in different forms with different degrees of persuasiveness. Which of the following is the least persuasive type of evidence?

Audit documentation prepared on audits of publicly-held clients is the property of the:

In the context of an audit of a financial report, substantive tests are audit procedures that:

'Dual-purpose tests' is a term used for:

Engagement risk is:

Inherent risk and control risk differ from detection risk in that they:

Audit documentation:

Which of the following statements concerning the auditor's use of the work of an expert is correct?

The risk that an auditor's procedures will lead to the conclusion that a material misstatement does not exist in an account balance when, in fact, such a misstatement does exist is:

When preparing audit working papers, the auditor should remember that working papers should be:

The situation and circumstances can dictate the level of certain risks no matter what the auditor does. However, the auditor is always able to decide to reduce one of the following risks:

In testing the existence assertion for an asset, an auditor ordinarily works from the:

While undertaking the audit of the inventory balance, you use your audit software to extract, from the inventory master file, a report that shows those with a negative gross margin. The financial report assertion at which such A report is aimed is:

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

You are concerned about whether all sales have occurred. The procedure that will be most effective in verifying this assertion is:

The following statements were made in a discussion of audit evidence between two auditors. Which statement is not valid concerning audit evidence?

Which of the following would be least likely to be included in an auditor's test of controls?