Question 1

Some audit procedures may be performed prior to the close of the year under audit.

Accepted Answer

A) True 
 B)False

Question 2

Assertions are relevant to the audit process because they are the representations of management embodied in the financial statements.

Accepted Answer

A) True 
 B)False

Question 3

Directional testing is important to an auditor because of which of the following factors?

Accepted Answer

A) Certain accounts are more prone to be misstated by overstatement than others. 
B) The auditor must remain organized when conducting an audit. 
C) The primary concern of the auditor is the understatement of asset and revenue accounts. 
D) It tests for existence and completeness simultaneously. 
A) Certain accounts are more prone to be misstated by overstatement than others. 
B) The auditor must remain organized when conducting an audit. 
C) The primary concern of the auditor is the understatement of asset and revenue accounts. 
D) It tests for existence and completeness simultaneously.

Question 4

Direct tests of account balances and of transactions are dual purpose tests.

Accepted Answer

A) True 
 B)False

Question 5

Audit documentation serves as support for the financial statements.

Accepted Answer

A) True 
 B)False

Question 6

An auditor selects a sample of items recorded and traces them back to the supporting documentation.This is an example of which of the following?

Accepted Answer

A) directional testing for existence. 
B) directional testing for completeness. 
C) direct testing for valuation. 
D) direct testing for rights. 
A) directional testing for existence. 
B) directional testing for completeness. 
C) direct testing for valuation. 
D) direct testing for rights.

Question 7

An audit program is created to specify which of the following?

Accepted Answer

A) the type of audit opinion to be rendered based upon procedures performed. 
B) the audit procedures that will be performed every year for the client. 
C) how an auditor should think while performing audit procedures. 
D) audit objectives and procedures to be followed during the audit process. 
A) the type of audit opinion to be rendered based upon procedures performed. 
B) the audit procedures that will be performed every year for the client. 
C) how an auditor should think while performing audit procedures. 
D) audit objectives and procedures to be followed during the audit process.

Question 8

Footing,cross-footing,and tests of extensions are examples of which approach to gathering evidence?

Accepted Answer

A) reprocessing 
B) recalculation 
C) vouching 
D) examination of documentation 
A) reprocessing 
B) recalculation 
C) vouching 
D) examination of documentation

Question 9

Audit procedures
Discuss how each of the following procedures could be used in the audit of fixed assets,e.g. ,various types of equipment used in the business.

Accepted Answer

None

Question 10

Reliability of audit evidence
The Auditing Standards Board established guidelines to assist auditors in evaluating the reliability of audit evidence.Discuss the criteria for the more reliable types of evidence and include an example for each.

Accepted Answer

Evidence that is considered to be more r

Question 11

The audit program specifies what the client must do to perform the audit in accordance with generally accepted accounting procedures.

Accepted Answer

A) True 
 B)False

Question 12

Evidence is generally of higher quality if it involves a member of the audit team actually going out to physically observe it than if it was obtained from another source.

Accepted Answer

A) True 
 B)False

Question 13

Internal documentation is more reliable to the auditor if the internal control surrounding the documentation is considered strong than if it is considered weak.

Accepted Answer

A) True 
 B)False

Question 14

Test of transactions,directional testing and substantive analytical procedures are used to provide evidence about management's assertions embedded in the financial statements.

Accepted Answer

A) True 
 B)False

Question 15

The direction of testing from recorded amounts toward supporting documentation provides evidence as to existence of assets and revenues.

Accepted Answer

A) True 
 B)False

Question 16

Documentation that is produced electronically by the client's internal systems is not considered appropriate to the audit process.

Accepted Answer

A) True 
 B)False

Question 17

The reliability of a client's internal documentation is most affected by which of the following?

Accepted Answer

A) the auditor's independence. 
B) management's motivation to misstate accounts. 
C) the type of audit report that will be issued. 
D) management's ability to understand generally accepted audit standards. 
A) the auditor's independence. 
B) management's motivation to misstate accounts. 
C) the type of audit report that will be issued. 
D) management's ability to understand generally accepted audit standards.

Question 18

The reliability of audit evidence is a measure of the quality of the underlying evidence and is influenced by risk,potential management bias associated with the evidence,and the quality of the internal control system underlying the preparation of the evidence.

Accepted Answer

A) True 
 B)False

Question 19

The auditor utilizes the same audit program and the same procedures each year for a client in order to ensure that nothing is missed in the current year audit.

Accepted Answer

A) True 
 B)False

Question 20

The process of vouching helps establish that all recorded transactions

Accepted Answer

A) have been recorded. 
B) are complete. 
C) are valid. 
D) are presented properly. 
A) have been recorded. 
B) are complete. 
C) are valid. 
D) are presented properly.

Some audit procedures may be performed prior to the close of the year under audit.

Assertions are relevant to the audit process because they are the representations of management embodied in the financial statements.

Directional testing is important to an auditor because of which of the following factors?

Direct tests of account balances and of transactions are dual purpose tests.

Audit documentation serves as support for the financial statements.

An auditor selects a sample of items recorded and traces them back to the supporting documentation.This is an example of which of the following?

An audit program is created to specify which of the following?

Footing,cross-footing,and tests of extensions are examples of which approach to gathering evidence?

Audit procedures Discuss how each of the following procedures could be used in the audit of fixed assets,e.g. ,various types of equipment used in the business.

Reliability of audit evidence The Auditing Standards Board established guidelines to assist auditors in evaluating the reliability of audit evidence.Discuss the criteria for the more reliable types of evidence and include an example for each.

The audit program specifies what the client must do to perform the audit in accordance with generally accepted accounting procedures.

Evidence is generally of higher quality if it involves a member of the audit team actually going out to physically observe it than if it was obtained from another source.

Internal documentation is more reliable to the auditor if the internal control surrounding the documentation is considered strong than if it is considered weak.

Test of transactions,directional testing and substantive analytical procedures are used to provide evidence about management's assertions embedded in the financial statements.

The direction of testing from recorded amounts toward supporting documentation provides evidence as to existence of assets and revenues.

Documentation that is produced electronically by the client's internal systems is not considered appropriate to the audit process.

The reliability of a client's internal documentation is most affected by which of the following?

The reliability of audit evidence is a measure of the quality of the underlying evidence and is influenced by risk,potential management bias associated with the evidence,and the quality of the internal control system underlying the preparation of the evidence.

The auditor utilizes the same audit program and the same procedures each year for a client in order to ensure that nothing is missed in the current year audit.

The process of vouching helps establish that all recorded transactions

Auditing: Integral to the Economy

Corporate Governance and Audits

Judgmental and Ethical Decision-Making Frameworks and Associated Professional Standards

Audit Risk,business Risk,and Audit Planning

Internal Control Over Financial Reporting

Performing an Integrated Audit

Tools Used in Gathering Audit Evidence

Auditing for Fraud

Auditing Revenue and Related Accounts

Audit of Acquisition and Payment Cycle and Inventory

Audit of Cash and Other Liquid Assets

Audit of Long-Lived Assets and Related Expense Accounts

Audit of Longer-Term Liabilities, equity, acquisitions, and Related-Entity Transactions, long-Term Liabilities, and Equity

Ensuring Audit Quality in Completing the Audit

Auditors Reports

Professional Liability

Advanced Topics Concerning Complex Audit Judgments

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Exam 7: A Framework for Audit Evidence

Some audit procedures may be performed prior to the close of the year under audit.

Assertions are relevant to the audit process because they are the representations of management embodied in the financial statements.

Directional testing is important to an auditor because of which of the following factors?

Direct tests of account balances and of transactions are dual purpose tests.

Audit documentation serves as support for the financial statements.

An auditor selects a sample of items recorded and traces them back to the supporting documentation.This is an example of which of the following?

An audit program is created to specify which of the following?

Footing,cross-footing,and tests of extensions are examples of which approach to gathering evidence?

Audit procedures Discuss how each of the following procedures could be used in the audit of fixed assets,e.g. ,various types of equipment used in the business.

Reliability of audit evidence The Auditing Standards Board established guidelines to assist auditors in evaluating the reliability of audit evidence.Discuss the criteria for the more reliable types of evidence and include an example for each.

The audit program specifies what the client must do to perform the audit in accordance with generally accepted accounting procedures.

Evidence is generally of higher quality if it involves a member of the audit team actually going out to physically observe it than if it was obtained from another source.

Internal documentation is more reliable to the auditor if the internal control surrounding the documentation is considered strong than if it is considered weak.

Test of transactions,directional testing and substantive analytical procedures are used to provide evidence about management's assertions embedded in the financial statements.

The direction of testing from recorded amounts toward supporting documentation provides evidence as to existence of assets and revenues.

Documentation that is produced electronically by the client's internal systems is not considered appropriate to the audit process.

The reliability of a client's internal documentation is most affected by which of the following?

The reliability of audit evidence is a measure of the quality of the underlying evidence and is influenced by risk,potential management bias associated with the evidence,and the quality of the internal control system underlying the preparation of the evidence.

The auditor utilizes the same audit program and the same procedures each year for a client in order to ensure that nothing is missed in the current year audit.

The process of vouching helps establish that all recorded transactions

Auditing: Integral to the Economy

Corporate Governance and Audits

Judgmental and Ethical Decision-Making Frameworks and Associated Professional Standards

Audit Risk,business Risk,and Audit Planning

Internal Control Over Financial Reporting

Performing an Integrated Audit

Tools Used in Gathering Audit Evidence

Auditing for Fraud

Auditing Revenue and Related Accounts

Audit of Acquisition and Payment Cycle and Inventory

Audit of Cash and Other Liquid Assets

Audit of Long-Lived Assets and Related Expense Accounts

Audit of Longer-Term Liabilities, equity, acquisitions, and Related-Entity Transactions, long-Term Liabilities, and Equity

Ensuring Audit Quality in Completing the Audit

Auditors Reports

Professional Liability

Advanced Topics Concerning Complex Audit Judgments

Filters