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

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

All of the following are typically in the current file except:

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

This is your first audit of XYZ Ltd. During the initial planning you have discovered that the client lacks receiving reports and a policy as to the timing within which to record purchases. You have also observed that there are many adjusting entries to accounts payable, which is a material balance. The audit assertion most at risk when auditing accounts payable is:

Which of the following audit risk components may be assessed in non-quantitative terms? Control risk Detection risk Inherent risk

An auditor's decision either to apply analytical procedures as substantive tests or to perform tests of details usually is determined by the:

Auditors can eliminate engagement risk:

In a financial report audit, substantive tests are audit procedures that:

To be appropriate, evidence must be both:

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

Your audit client is a shop that sells some of its own merchandise and some merchandise held on consignment.Which account balance assertion for inventory would you be most concerned about verifying?

As part of accounts payable testing, an auditor reviews cash payments made post balance date. This is done mainly to gain evidence about the:

The current file of an auditor's working papers is most likely to include a copy of the:

When reviewing a loan agreement to ascertain whether the bank's security over any of the client's assets has been included in the financial report, the audit assertion being achieved is:

Evidence is reliable if it:

An auditor's working papers will generally be least likely to include documentation showing how the:

Which of the following is not a financial report assertion?

Which of the following factors will least affect the independent auditor's judgment as to the quantity, type and content of working papers desirable for a particular engagement?

Your audit client is under intense pressure to meet an earnings target. Which transaction assertion for purchases are you most concerned with?

Which of the following is an essential factor in evaluating the sufficiency of evidence? The evidence must: