Question 1

The nature of substantive procedures normally consists of one or a combination of which of the following techniques?

Accepted Answer

A)  analytical procedures 
B)  representative sampling 
C)  key item testing 
D)  all of the above 
A)  analytical procedures 
B)  representative sampling 
C)  key item testing 
D)  all of the above

Question 2

Roll-forward procedures are performed:

Accepted Answer

A)  to update the audit findings from the time of the interim procedures through to year-end. 
B)  to detect fraud in various balance sheet accounts. 
C)  before the end of the financial year. 
D)  none of the above. 
A)  to update the audit findings from the time of the interim procedures through to year-end. 
B)  to detect fraud in various balance sheet accounts. 
C)  before the end of the financial year. 
D)  none of the above.

Question 3

Which of the following examples of substantive procedures would often be performed prior to year-end?

Accepted Answer

A)  confirming the client's bank balance 
B)  attending the client's annual inventory count 
C)  testing additions and disposals to the fixed asset register 
D)  performing confirmations of accounts receivable 
A)  confirming the client's bank balance 
B)  attending the client's annual inventory count 
C)  testing additions and disposals to the fixed asset register 
D)  performing confirmations of accounts receivable

Question 4

Discuss the factors that influence the extent and timing of substantive procedures.

Accepted Answer

How much substantive testing is performe

Question 5

Performing substantive procedures prior to year-end, in the absence of specific effective controls, may be acceptable when:

Accepted Answer

A)  the auditor is able to conclude overall that the client's control environment is effective. 
B)  the likelihood of errors or fraud is high. 
C)  the likelihood of errors or fraud is low. 
D)  both a and c. 
A)  the auditor is able to conclude overall that the client's control environment is effective. 
B)  the likelihood of errors or fraud is high. 
C)  the likelihood of errors or fraud is low. 
D)  both a and c.

Question 6

Which of the following statements is correct?

Accepted Answer

A)  If detection risk is high, significant substantive procedures are necessary to reduce detection risk. 
B)  There is an inverse relation between the auditor's assessed risk of material misstatement and detection risk. 
C)  There is no relation between the auditor's assessed risk of material misstatement and detection risk. 
D)  If detection risk is low, only a small number of substantive procedures are necessary to reduce the detection risk. 
A)  If detection risk is high, significant substantive procedures are necessary to reduce detection risk. 
B)  There is an inverse relation between the auditor's assessed risk of material misstatement and detection risk. 
C)  There is no relation between the auditor's assessed risk of material misstatement and detection risk. 
D)  If detection risk is low, only a small number of substantive procedures are necessary to reduce the detection risk.

Question 7

Which of the following factors should not influence the extent and timing of when substantive procedures are performed?

Accepted Answer

A)  the type of audit opinion that the client would like the auditor to issue 
B)  the complexity of the client's data capturing systems 
C)  the level of assurance necessary 
D)  the type of evidence required 
A)  the type of audit opinion that the client would like the auditor to issue 
B)  the complexity of the client's data capturing systems 
C)  the level of assurance necessary 
D)  the type of evidence required

Question 8

Explain the difference between vouching and tracing.

Accepted Answer

Vouching is when a balance or transactio

Question 9

Roll-forward procedures are performed during the period between the end of the financial
year and the date of the audit report.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is the first step an auditor performs when performing analytical procedures?

Accepted Answer

A)  determine appropriate procedures for investigating the reasons for differences if they are significant 
B)  draw conclusions 
C)  identify the computation, comparison or relationship to be made or investigated 
D)  assess the reliability of any data to be used 
A)  determine appropriate procedures for investigating the reasons for differences if they are significant 
B)  draw conclusions 
C)  identify the computation, comparison or relationship to be made or investigated 
D)  assess the reliability of any data to be used

Question 11

Daniel Morency has performed evaluations of financial information and determined whether the fluctuations of his client's sales figures are consistent with other data he has gathered. He
Has used this information to predict year-end amounts of sales. This is an example of
Substantive procedures called

Accepted Answer

A)  tests of details. 
B)  computer assisted audit techniques. 
C)  analytical procedures. 
D)  none of these. 
A)  tests of details. 
B)  computer assisted audit techniques. 
C)  analytical procedures. 
D)  none of these.

Question 12

Jacqueline Martineau was told by her audit senior to ensure that the evidence she provided through analytical procedures was both persuasive and corroborative. Which of the following
Evidences are persuasive?

Accepted Answer

A)  When reviewing accruals for commissions refer to terms of agreements and payment dates. 
B)  When reviewing trade receivables or sales review the volatility of the customer base and compare with expectations. 
C)  When reviewing sales and commissions expense compare sales commissions or bonuses with related sales. 
D)  When reviewing payroll expense compare payroll tax expenses to the annual payroll times the statutory tax rates. 
A)  When reviewing accruals for commissions refer to terms of agreements and payment dates. 
B)  When reviewing trade receivables or sales review the volatility of the customer base and compare with expectations. 
C)  When reviewing sales and commissions expense compare sales commissions or bonuses with related sales. 
D)  When reviewing payroll expense compare payroll tax expenses to the annual payroll times the statutory tax rates.

Question 13

Vouching involves tracking a source document back to the underlying accounting records.

Accepted Answer

A) True 
 B)False

Question 14

Jocelyne Yu is performing procedures and has decided to vouch the balance in the fixed assets ledger of a furniture manufacturing company back to supporting documentation. She is
Performing a

Accepted Answer

A)  test of details. 
B)  test of controls. 
C)  risk assessment. 
D)  none of the above. 
A)  test of details. 
B)  test of controls. 
C)  risk assessment. 
D)  none of the above.

Question 15

Vouching involves:

Accepted Answer

A)  tracking a source document through to the underlying accounting records. 
B)  agreeing the details of a transaction to supporting evidence outside of the company's accounting records. 
C)  the application of audit procedures to less than 100 per cent of items within a population. 
D)  none of the above. 
A)  tracking a source document through to the underlying accounting records. 
B)  agreeing the details of a transaction to supporting evidence outside of the company's accounting records. 
C)  the application of audit procedures to less than 100 per cent of items within a population. 
D)  none of the above.

Question 16

Common examples of substantive procedures related to key items testing and representative sampling include:

Accepted Answer

A)  tests of income statement accounts for account classification. 
B)  tests of client prepared schedules. 
C)  tests of underlying data to be used as part of the analytical procedures. 
D)  all of the above. 
A)  tests of income statement accounts for account classification. 
B)  tests of client prepared schedules. 
C)  tests of underlying data to be used as part of the analytical procedures. 
D)  all of the above.

Question 17

After performing a risk assessment of a food processing company, Sean Spino has come to the conclusion that he will require more evidence to be obtained by his audit team from
Substantive procedures. Which of the factors below led him to this conclusion?

Accepted Answer

A)  the level of assurance necessary 
B)  the type of evidence required 
C)  the nature of the test 
D)  the complexity of the client's data capturing systems 
A)  the level of assurance necessary 
B)  the type of evidence required 
C)  the nature of the test 
D)  the complexity of the client's data capturing systems

Question 18

Audit sampling is the application of audit procedures to less than 100 per cent of items within
a population.

Accepted Answer

A) True 
 B)False

Question 19

The purpose of substantive procedures includes obtaining direct evidence as to:

Accepted Answer

A)  the reasonableness of the estimates and other information in the financial statements. 
B)  the completeness, accuracy and validity of data. 
C)  both a and b. 
D)  none of the above. 
A)  the reasonableness of the estimates and other information in the financial statements. 
B)  the completeness, accuracy and validity of data. 
C)  both a and b. 
D)  none of the above.

Question 20

Umberto Levinson has performed a test of controls of a flower shop. He is trying to determine the timing of substantive procedures at year-end. Which factor will determine the
Timing of his audit procedures?

Accepted Answer

A)  timing of the year-end work 
B)  audit risk 
C)  inherent risk 
D)  control risk 
A)  timing of the year-end work 
B)  audit risk 
C)  inherent risk 
D)  control risk

The nature of substantive procedures normally consists of one or a combination of which of the following techniques?

Roll-forward procedures are performed:

Which of the following examples of substantive procedures would often be performed prior to year-end?

Discuss the factors that influence the extent and timing of substantive procedures.

Performing substantive procedures prior to year-end, in the absence of specific effective controls, may be acceptable when:

Which of the following statements is correct?

Which of the following factors should not influence the extent and timing of when substantive procedures are performed?

Explain the difference between vouching and tracing.

Roll-forward procedures are performed during the period between the end of the financial year and the date of the audit report.

Which of the following is the first step an auditor performs when performing analytical procedures?

Jacqueline Martineau was told by her audit senior to ensure that the evidence she provided through analytical procedures was both persuasive and corroborative. Which of the following Evidences are persuasive?

Vouching involves tracking a source document back to the underlying accounting records.

Jocelyne Yu is performing procedures and has decided to vouch the balance in the fixed assets ledger of a furniture manufacturing company back to supporting documentation. She is Performing a

Vouching involves:

Common examples of substantive procedures related to key items testing and representative sampling include:

After performing a risk assessment of a food processing company, Sean Spino has come to the conclusion that he will require more evidence to be obtained by his audit team from Substantive procedures. Which of the factors below led him to this conclusion?

Audit sampling is the application of audit procedures to less than 100 per cent of items within a population.

The purpose of substantive procedures includes obtaining direct evidence as to:

Umberto Levinson has performed a test of controls of a flower shop. He is trying to determine the timing of substantive procedures at year-end. Which factor will determine the Timing of his audit procedures?

Introduction and Overview of Audit and Assurance

Ethics, Legal Liability and Client Acceptance

Audit Planning I

Audit Planning II

Audit Evidence

Sampling and Overview of the Risk Response Phase of the Audit

Gaining an Understanding of the Clients System of Internal Controls

Execution of the Audittesting of Controls

Substantive Testing and Balance Sheet Accounts

Substantive Testing and Income Statement Accounts

Completing and Reporting on the Audit

Filters

Exam 9: Execution of the Auditperforming Substantive Procedures

The nature of substantive procedures normally consists of one or a combination of which of the following techniques?

Roll-forward procedures are performed:

Which of the following examples of substantive procedures would often be performed prior to year-end?

Discuss the factors that influence the extent and timing of substantive procedures.

Performing substantive procedures prior to year-end, in the absence of specific effective controls, may be acceptable when:

Which of the following statements is correct?

Which of the following factors should not influence the extent and timing of when substantive procedures are performed?

Explain the difference between vouching and tracing.

Roll-forward procedures are performed during the period between the end of the financial year and the date of the audit report.

Which of the following is the first step an auditor performs when performing analytical procedures?

Jacqueline Martineau was told by her audit senior to ensure that the evidence she provided through analytical procedures was both persuasive and corroborative. Which of the following Evidences are persuasive?

Vouching involves tracking a source document back to the underlying accounting records.

Jocelyne Yu is performing procedures and has decided to vouch the balance in the fixed assets ledger of a furniture manufacturing company back to supporting documentation. She is Performing a

Vouching involves:

Common examples of substantive procedures related to key items testing and representative sampling include:

After performing a risk assessment of a food processing company, Sean Spino has come to the conclusion that he will require more evidence to be obtained by his audit team from Substantive procedures. Which of the factors below led him to this conclusion?

Audit sampling is the application of audit procedures to less than 100 per cent of items within a population.

The purpose of substantive procedures includes obtaining direct evidence as to:

Umberto Levinson has performed a test of controls of a flower shop. He is trying to determine the timing of substantive procedures at year-end. Which factor will determine the Timing of his audit procedures?

Introduction and Overview of Audit and Assurance

Ethics, Legal Liability and Client Acceptance

Audit Planning I

Audit Planning II

Audit Evidence

Sampling and Overview of the Risk Response Phase of the Audit

Gaining an Understanding of the Clients System of Internal Controls

Execution of the Audittesting of Controls

Substantive Testing and Balance Sheet Accounts

Substantive Testing and Income Statement Accounts

Completing and Reporting on the Audit

Filters